Tri-Cities Conference
Are you a business serving VA nonprofits?
Read the Virginia Nonprofit Sector Report
Calendar
Advocacy
National Nonprofit Policy Update – May 2006
Senate Passes Lobby Reform
The Senate overwhelmingly passed the Legislative Transparency and Accountability Act (S.2349) on March 29. The act includes several provisions that affect nonprofits, including increased grassroots lobbying reporting, disclosure of contributions to coalitions, disclosure of political contributions made by lobbyists, and new requirements for privately funded travel. Several controversial amendments, including one that would have allowed five-year prison terms for officers of nonprofits that engaged in lobbying with federal funds, were not included in the final bill.
Legislative Overview 2005
- On December 5, the Treasury Department released a revised version of its November 2002 “Anti-Terrorist Financing guidelines: Voluntary Best Practices for US Based Charities.” The guidelines ask nonprofits to check a terrorist watch list for employees, recipients they give money or in-kind support to, and employees of recipient entities. They ask nonprofits to report anyone on the list, as well as “any suspicious activity” by individuals or groups, to the government.
- Key committees in both the Senate and the House continued to investigate and discuss nonprofit regulatory issues. The Senate Finance Committee held hearings on charitable giving, the tax code as it relates to land conservation, and how nonprofits meet the needs of America’s communities. Investigations continued focused on The Nature Conservancy, American University, and the Red Cross.
- The Panel on the Nonprofit Sector was convened by Independent Sector in October 2004 at the encouragement of the Senate Finance Committee. Leaders from foundations and nonprofit organizations were brought together to discuss transparency, governance, and accountability of the sector. On June 22 the panel released a report outlining a series of recommendations, including 120 actions to be taken by charitable organizations, Congress, and the Internal Revenue Service. While a comprehensive “nonprofit reform bill” did not materialize, some provisions were attached to legislation aimed at aiding the Hurricane Katrina efforts and to the Senate’s 2006 tax reconciliation bill.
- The Tax Relief Act of 2005 (S.2020) included a number of charitable giving incentives and reforms: tax-free distributions from IRA accounts, revised rules regarding donations of clothing and household goods, and tax deductions for charitable donations for taxpayers who do not itemize their returns.
- New United States Post Office rules regarding how personal information can be used in Nonprofit Standard Mail went into effect on June 1, 2005. These rules require mail pieces to be categorized as First Class if they contain personal information, unless the personal information is directly related to an explicit solicitation. Under the new rules, nonprofits retain the ability to send personal communications to prospective supporters, constituents, and members at the Nonprofit Standard rates.