By Hillary Evans, vice president of professional learning & public policy, Philanthropy Southwest
Public Policy Roundup 2.10.21 (January/February Issue)
Budget Reconciliation Begins for COVID Relief Bill
The House approved on February 5th the Senate’s 2021 Budget Resolution, which lays the groundwork for the budget reconciliation process. Budget reconciliation can be used as tool to expedite the enactment of legislation, with only a simple majority vote (51 votes).
The Biden-Harris administration previously introduced its $1.9 trillion American Rescue Plan for COVID relief on January 20th. President Biden’s proposal is expected to provide relief, in part, to the nonprofit sector beneficiaries. National nonprofit partners continue to advocate for relief for the sector. A House floor vote is expected the week of February 22nd.
The COVID relief bill followed a very rough start to 2021 with the U.S. Capitol siege on January 6th. Senator Wyden, the new chair of the Senate Finance Committee, sent a letter last month calling for an investigation of the tax-exempt organizations who may have been involved with the planning or inciting the insurrection. The letter suggests revoking the status of these tax-exempt organizations, if the investigation finds that these organizations incited or committed violence and other illegal acts. Lawmakers have also raised other concerns around security at the Capitol and increasng oversight and accountability generally.
Congress Reintroduces the Legacy IRA Act
Also on February 5th, Senators Kevin Cramer (R-ND) and Debbie Stabenow (D-MI) reintroduced the Legacy IRA Act. This legislation would allow seniors, starting at the age of 65 to make tax-free IRA rollovers up to $400,000 to charities through life-income plans, e.g. charitable gift annuities or charitable remainder trusts. House Ways and Means Chairman Richard Neal (D-MA) and Ranking Member Kevin Brady (R-TX) introduced a bipartisan retirement bill last year that included a scaled-down version of the Legacy IRA Act. This version of the Legacy IRA Act varies from the version introduced in the 116th Congress by making this change to the IRA Charitable Rollover permanent. We will continue to monitor this legislation.
National Philanthropic Trust Reports Increase in Donor-Advised Funds
The National Philanthropic Trust (NPT) recently released their 2020 DAF report, which includes an analysis of donor-advised fund (DAF) use in 2019. Assets in donor-advised funds (DAFs) tracked by the National Philanthropic Trust (NPT) rose 16.2% to US$142 billion in fiscal year 2019 compared to the year before as grants to nonprofits from these philanthropic, tax-advantaged vehicles rose to US$27 billion, a 15% jump. The rise in donors is attributed to donor response to the crisis. The average payout from DAFs was 22.4 percent, continuing a longstanding trend of DAFs paying out above 20 percent annually. The report also details the growth of contributions, charitable assets, and the number of DAF accounts. Please click here to read the full report.
Have You Registered for Foundations on the Hill?
As the new 117th Congress convened and new administration was sworn in last month, there is real opportunity to effect change and engage with elected leaders. Join us virtually March 16-18, 2021 and March 23-25, 2021 for Foundations on the Hill. Participants will be able to attend policy discussions and advocate for philanthropy using the new Phone 2 Action platform.
If you are interested in joining the Southwest Delegation please reach out to Hillary Evans, hillary@philanthropysouthwest.org. You may click here for more information and to register.
Meet Miti Shah, CONNECT Fellow Supporting PSW Giving Study Efforts
PSW is pleased to continue its partnership with the the University of Texas RGK Center for Philanthropy and Community Service’s CONNECT Program. This program pairs a graduate fellow on a data project with a Texas-based nonprofit. Miti Shah, a PhD candidate at the University of Texas, will be supporting PSW’s Giving Study efforts. A part of her study will focus on the events of 2020, including the pandemic and social injustice uprisings, on philanthropic giving in the Southwest.