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January 2007
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Gardner Award Nominations Due
January 31 is the deadline for nominating an outstanding nonprofit leader for the 2007 Gardner Award. |
Sign Up for IS Newsletters
Remember to subscribe to any or all of the three newsletters IS has developed to keep you informed of the latest news and policy happenings. Visit your Subscriptions page to learn more about -- and sign up for -- the Daily Media Digest and the Daily Policy Digest. While you're there, you can also choose which other messages you would like to receive from IS, such as alerts on public policy issues. |
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From the President's Desk
 The 110th Congress will be sworn in tomorrow, launching a new season of federal legislation. Lawmakers take office in the wake of ethical and legal scandals that concerned voters and evoked calls for serious changes in the ways members conduct their business. Based on the short list of actions the House of Representatives plans to take up in the next few weeks, the Democrats who will assume leadership appear to be poised to deal with public concern about congressional interactions with lobbyists.
The leaders of the House have said that they want to be sure that members are not -- and do not appear to be -- in the pockets of special interest groups. It is not surprising that last year they began to consider banning lobbyists from paying for or providing any kind of gift, meal, or travel to members or staff of Congress.
That might be a reasonable remedy if there were sufficient funds in members’ budgets to pay for travel or hotel expenses involved in carrying out the work of Congress. That is not the case. Nor are all lobbyists who work with the Congress paid by for-profit companies seeking legislation, regulations, or contracts favorable to their business or industry.
Many charitable nonprofits employ staff or retain outside counsel to help them navigate through the Capitol Hill labyrinth and explain their programs, needs, and concerns to Congress. Current law requires organizations that spend more than $24,500 in six months on such activities to register as federal lobbyists and provide reports twice a year listing the staff who represent them to Congress, the issues they’re working on, and the amount they spend on lobbying (other than self-defense lobbying). There are other strict rules about lobbying activities, which must be related to the charitable purposes of the organization, and charitable nonprofits cannot sponsor or participate in the types of campaign fundraisers that for-profit lobbying firms conduct. Other than for self-defense, private foundations may not lobby at all.
Greater transparency about lobbying activities and stronger enforcement of the lobbying rules would go a long way to discouraging improper travel and gift giving. At the same time, rules that would make it difficult for charitable organizations to educate lawmakers about issues does not serve the members of Congress. Sometimes the best way to inform lawmakers about issues is for them and their staffs to see with their own eyes what is happening on the ground. It is all but certain that they will not have funds in their limited budgets to travel often outside of their own districts, even though the policies they consider have wide-ranging national and international implications.
Banning all travel that involves lobbyists would limit access to lawmakers for a host of Americans. Charitable organizations that employ staff or retain lobbyists would have to bring their people to Washington, rather than being able to conduct meetings in their home communities. No longer could an organization demonstrate to staff or members of Congress model programs currently unavailable in their own districts, nor could it show officials how changes in federal policies or budget decisions would affect people throughout the country -- or around the world, for that matter.
Thanks to the work of many IS members and others, the House of Representatives is now considering more thoughtful measures. These alternative proposals would permit one-day travel to attend a forum, give a speech, or visit a program if the trip was connected to the member’s or staff’s official duties, the expenses were reasonable, and the destination was related to the purpose of the trip. The trips would have to be pre-approved, and all travel details would have to be fully disclosed. Special arrangements are also being worked out to allow international travel that serves a specific educational purpose, does not include lavish accommodations or entertainment, and does not give lobbyists inappropriate access to lawmakers.
Congress can put a stop to corruption and the undue influence of money in shaping federal policies without closing its doors to our nation’s people and the charitable organizations that give them voice. I urge you to join us in calling for sensible reform that prevents odious excesses while still making it possible for public officials to travel where needed.
Diana Aviv
President and CEO |
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Policy News
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Become more involved with policy issues through IS's Policy Action Network (PAN), a growing coalition that takes collaborative action on key nonprofit issues in federal, state, and local government. PAN members participate in in-depth monthly briefings that feature leading nonprofit policy experts and focus on long-range approaches. Staff at IS member organizations can also join the Legislative and Regulatory Advisory Committee to receive updates on current congressional and regulatory issues and to share strategies about communicating more effectively with members of Congress. To learn more about either group, email publicpolicy@independentsector.org.
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IS Files an Amicus Supporting Nonprofits Right to Free Speech
To help nonprofits maintain their First Amendment rights, Independent Sector filed an amicus curiae brief with the U.S. Court of Appeals last month in the case of Alliance for Open Society International, Inc., et. al., v. U.S. Agency for International Development, et. al. The case challenges the federal government’s requirement that nonprofit organizations that receive Leadership Act funds from the U.S. Agency for International Development must adopt a policy expressly opposing prostitution and cease all activities, including those that are wholly funded through private sources, that are inconsistent with opposition to prostitution. IS’s brief argues that the government’s requirement undermines the independence of nonprofits by restricting their constitutional rights of free speech when using private funds.
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New Congress Tackles Lobbying Reform
The incoming leaders of the House of Representatives continue to prepare changes to the rules for interactions between members and staff of Congress and organizations that are lobbyists or that employ or retain federal lobbyists. The latest version of the proposed rules for the House would ban:
- Gifts and meals from lobbyists and the organizations that employ them.
- Travel planned, requested, paid for, or involving lobbyists or the organizations that employ them, except for one-day travel to visit a site, attend a forum, participate in a panel, or give a speech.
- Use of official or campaign funds by lawmakers to pay for the use of non-commercial corporate jets (other than charter plane services).
All travel would need to be approved in advance and details of the trip would have to be fully disclosed. It is expected that representatives will begin to act on new rules on January 4, immediately after they take office.
Both the House and the Senate are also considering legislation to strengthen reporting requirements for lobbyists and enforcement of lobbying and ethics rules. IS has prepared analyses of the proposed changes.
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New Congress Faces Budget, Appropriations Challenges
When the 109th Congress adjourned in December, it had passed only two of 11 spending bills for fiscal year 2007. Congress instead approved a “continuing resolution” that will keep the federal government running through mid-February. The Democratic leaders of the 110th Congress have announced they do not plan to deal with the nine remaining spending bills separately, but will likely extend the continuing resolution without any increases over 2006 funding levels and without any “earmarks,” funds designated for specific projects or organizations. This approach could have serious financial implications for many charitable organizations that receive funding in this manner. Congress would, however, be able to focus its attention on the FY 2008 budget the President will propose in early February.
The House also plans to change the rules governing the budget process shortly after it convenes. The new rules will include “pay-go” provisions requiring that any proposed cuts in taxes or increases in spending to include methods to “pay for” the change in a way that does not reduce the federal budget surplus or increase the deficit. Furthermore, the House intends to require full disclosure of the sponsors of earmarks, as well as a certification that a member of Congress or his or her spouse would not benefit financially from the project or organization named in the earmark.
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Tracking the Impact of the New IRA Rollover Incentive
By the end of 2006, many charities had already taken advantage of the recently enacted IRA Charitable Rollover to raise funds to help them improve lives. To convince Congress to renew the IRA Rollover, which is in effect only until December 31, 2007, nonprofit organizations will need to show that it is providing significant benefits. We are therefore asking all IS members to tell us about contributions they have received because of the rollover by using the online survey developed by the National Committee on Planned Giving, co-chair with IS of the IRA Rollover Coalition. You can also share your experience by emailing us.
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Congress Appoints Committee Chairs and Members
Both the Democratic and Republican leaders of the 110th Congress have completed almost all of their appointments for the chairs and members of the committees that carry out much of the Congress’s work. There have been substantial changes in the membership of the House Ways and Means Committee and the Senate Finance Committee, which have oversight responsibilities for the charitable sector. We urge IS members to let us know if you have contacts with any of the members of these committees and to congratulate the new committee members, particularly if your representatives or senators have joined either of these committees. |
Governance Changes in Store for Red Cross
Following a year of scrutiny and a comprehensive six-month review of its governance structure, the American Red Cross released its recommendations for changes in its board size, composition and structure, as well as in other management practices. Legislation to enact those recommendations was introduced in the final days of the 109th Congress, since the congressional charter for the Red Cross requires an Act of Congress to implement such changes. For more information on the governance roundtable, go to the IS website.
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Nonprofit Hospitals May Remain Under Scrutiny
In one of his final acts in office, retiring Ways and Means Committee Chair Bill Thomas (R-CA) introduced a bill that he hopes will serve as a discussion point on nonprofit hospitals in the next Congress. The Tax Exempt Hospitals Responsibility Act (H.R. 6420), would require nonprofit hospitals to comply with new charity care requirements in order to keep their tax-exempt status and to continue receiving tax-deductible contributions. The bill would also impose excise taxes on nonprofit hospitals for:
- Failure to provide medically necessary care to a low-income uninsured individual;
- Overcharging for medically necessary care; and,
- Failure to disclose charitable medical care information and negotiated charges.
For more details, go to the Ways and Means Committee press release.
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Congress Passes Bill Allowing Charitable Donations in Bankruptcy
Congress approved a measure to allow individuals in bankruptcy to continue making charitable contributions. The need for clarification was made apparent by recent bankruptcy litigation. The measure (S. 4044), which was introduced by Senators Orrin Hatch (R-UT) and Barack Obama (D-IL), is expected to be signed by President Bush. |
Charitable Remainder Trusts Provision Passes
Congress recently passed a tax provision that will allow charitable remainder trusts that receive unrelated business income to maintain their tax-exempt status. Previously, any unrelated business income would cause such trusts to lose their tax-exempt status. Now the trust will pay a 100 percent excise tax on the unrelated business income, but will keep its status. The provision passed as part of a larger tax bill in December.
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Postal Reform Bill Cleared for the President
After many years of negotiations, Congress passed a postal reform bill (H.R. 6407) last month. Its reforms include resolving a dispute between the U.S. Postal Service and the Administration over an escrow fund for retirement obligations, and the resulting financial relief for the Postal Service will reduce some of the pressure to raise postage rates. The measure also establishes a process for limiting postal rate increases to the rate of inflation by the summer of 2008, enabling smaller and more predictable postage rate increases. A rate case currently underway will continue, however, with new postage rates expected in May. Visit the Alliance of Nonprofit Mailers’ website for its statement on the bill’s passage.
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Call for Nominations for the 2007 John W. Gardner
Leadership Award
The deadline for nominations for the 2007 John W. Gardner Leadership Award is January 31. The award recognizes a living American, working in or with the nonprofit community, who has mobilized and unified people, institutions, or causes, and has transformed his or her chosen field and thereby contributed to the greater good. Nominations can be submitted electronically or by regular mail.
The award, which includes a prize of $10,000, will be presented at the 2007 Independent Sector Annual Conference in Los Angeles, October 21-23. Independent Sector established the award in 1985 to honor outstanding Americans who exemplify the leadership and ideals of John W. Gardner, founding chair of IS.
IS honored Dr. Johnnetta B. Cole, president of Bennett College for Women, with the 2006 award recognizing her lifelong commitment to advancing social justice. Learn more about Dr. Cole, as well as the nomination and selection process, on the IS website. |
Looking Ahead to 2007
Through programs such as the Policy Action Network, the Legislative and Regulatory Advisory Committee, and the Public Policy Action Institute, Independent Sector continues to build a network of effective advocates for the nonprofit community. IS members can learn how to become a part of these efforts by contacting us. For this month’s Perspectives, five public policy leaders from IS member organizations describe their plans for 2007 by responding to the following question:
"In November, voters selected hundreds of new officials to represent them in Congress, statehouses, and city halls. In what ways will these changes affect how your organization advocates for your cause?"
Jason Hall is director of government and media relations for American Association of Museums, the only organization representing the entire scope of museums and professionals
and nonpaid staff who work for and with museums.
AAM advocates almost entirely at the federal level, so the many changes at the state and local levels will not affect our near-term advocacy efforts. Aside from the usual introductory letters to new members of Congress, we don't expect profound changes on our issues, tax and appropriations. Continued bipartisan support for museums plus continuing razor-thin majorities, lack of funds, and the election of many centrists argue for level funding near-term, and we don't anticipate a lot of near-term additional charity oversight legislation following the extensive changes Congress made in the recent Pension Protection Act.
 Audrey Haynes is public policy director of the YMCA of the USA, the largest nonprofit community service
organization in America. The nation's more than 2,600 YMCAs work to meet the health and human service needs of
20.2 million men, women and children in 10,000 communities.
Regardless of leadership changes locally or federally, a top priority for the YMCA of the USA is ensuring that policy makers -- at all levels -- fully understand our charitable mission to build strong kids, strong families and strong communities. As nonprofits, we are under increasing scrutiny, so we continue to encourage our 2,617 local associations to emphasize the transparency of their operations and their commitment to public accountability. One way we have done this is through our national Project 990. YMCA of the USA deems IRS Form 990 to be so important to the individual and collective standing of YMCAs that we introduced a three-year effort to improve the 990 filings across the YMCA movement. This project is helping YMCAs more clearly and fully tell the story of their charitable activities.
 Daniel E. Smith is president of the American Cancer Society Cancer Action Network, the sister advocacy organization of the American Cancer Society dedicated to eliminating cancer as a major public health problem through voter education and issue campaigns.
Our issues and our work have always been about a cancer agenda, rather than a partisan approach. The war on cancer will not be won without the strong commitment of government at all levels. ACS CAN's legislative agenda includes encouraging lawmakers to commit to enacting the provisions in the Congressional Cancer Promise and giving the Food and Drug Administration regulatory authority over tobacco. At the state level, ACS CAN will continue nationwide efforts to enact strong tobacco control policies, including smoke-free environments, as well as ensuring insurance coverage for a wide range of cancer screenings.
 Ronald Soloway is managing director of government and external relations for UJA Federation of Jewish Philanthropies of New York, Inc., the world's largest local philanthropy. It rescues those in harm's way, and renews and strengthens the Jewish people in New York, in Israel, and around the world.
The recent election results do not change how we advocate for the needs of the individuals and families served by our affiliated health and human service agencies. Who we are talking to has changed, however. In New York, a number of our members have ascended to leadership on important Congressional committees, including House Ways and Means and Rules and Senate Finance. These elected officials are familiar with UJA-Federation, our network of agencies and our issues of concern and, as such, we believe they will be better able to identify opportunities to assist those most vulnerable among us.
 Paul Thornell is vice president of public policy for the United Way of America, a national network of more than 1,300 locally governed organizations that work to create lasting positive changes in communities and people’s lives.
The 110th Congress brings exciting opportunities for United Way of America to build on important accomplishments of the last two years and further bipartisan leadership on human service priorities. The change in majorities is notable and one of the most significant political occurrences of the new century. For UWA, this change means maintaining our commitment to non-partisan advocacy as we deepen our relationships with Democratic, Republican and Independent allies on Capitol Hill and cultivate new champions for our agenda.
It is important to note though that Congress has also lost some long-time champions of issues important to the nonprofit sector. Congressman Harold Ford (D-TN), Congresswoman Nancy Johnson (R-CT), Senator Rick Santorum (R-PA), and Congressman Mike Bilirakis (R-FL) all demonstrated leadership on priority issues for charities and the communities we serve and they should be applauded as such. All of us in the sector should seize this opportunity to cultivate new leaders that can step into this void as we continue to bring voice and visibility to our issues on Capitol Hill.
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Nominate An Outstanding Nonprofit for the
Leadership IS Award
Independent Sector seeks your help in identifying a nonprofit organization that exemplifies a culture of investing in the people of the nonprofit community to be considered for the 2007 Leadership IS Award. The award recognizes organizations that emphasize the development of staff, board, and volunteer leadership.
Nominations are due by February 15, 2007. Anyone may nominate an organization for the Leadership IS Award. The award will be presented at the 2007 Independent Sector Annual Conference, which will be held in Los Angeles, October 21-23.
For more information about the award, including an online nomination form and past winners, visit the IS website or contact Jennifer Edwards.
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| IS Profiles Vital Voices in the Nonprofit Community
The 2005 Independent Sector Annual Report profiled seven “vital voices” at charities and foundations. These seven people represent the millions of staff and volunteers whose work improves lives across the country and around the world, and who help Independent Sector provide its leadership for our sector. In the past months, Memo to Members has shared with you their stories and those of others who demonstrate the spirit and values of our community. The following is the final installment of those stories.
Michael Piraino, National Casa Association
Michael Piraino with foster child David Stephens at a CASA art event in Atlanta. |
Michael Piraino has two goals when he gets on an
airplane.
“I want the people next to me to understand what
we do,” explains Mike, CEO of the National CASA
Association, which promotes court-appointed volunteer
advocacy for 225,000 abused and neglected
children across the country. “I hope they’ll become
one of our advocates or a board member of one of
our local groups.”
Because maltreated children are not everyone’s
foremost issue, Mike tries to make a broader point to
his seatmates. “We all have some need to make a difference,”
he continues. “I want them to see that they
don’t have to change their lives completely to change
their communities.”
CASA volunteers (sometimes called guardians ad
litem) also illustrate how the charitable sector can
collaborate with government. Court and government
officials -- often skeptical initially of the value of nonattorney
volunteers -- find that community-based
advocates are valuable partners, helping everyone
better understand the children and getting them more quickly into safe, permanent
homes.
The importance of serving
these children well helps
explain why Mike participates
in broad efforts such as
the Panel on the Nonprofit
Sector. His greatest interest is
in accountability -- “Are we doing things in a smart
way?” -- and joining sector-wide discussions enables
National CASA and its 940 member organizations to
contribute to and to learn from the successes of other organizations.
The importance of being effective is clear from the
story of a CASA volunteer who took his child to the
beach. “I’ve waited all my life for this day,” explained
the boy: not only had he never seen the ocean, but “no one else has ever really listened to me.”
“I would have been happy to do that for one child
in my life,” concludes Mike. “I’m floored that I can help
others do it for 225,000 children a year.”
Learn more at www.nationalcasa.org. |
We are developing additional profiles of vital voices. If you have someone to suggest, visit the IS website to complete a quick description of that person.
Read the 2005 Independent Sector Annual Report or see the other vital voices profiled in it. |
Civic Engagement News
Many charitable organizations are using or supporting the use of civic engagement strategies to increase the participation of stakeholders in addressing critical issues facing communities. This section highlights issues and trends in civic engagement, as well as the many ways in which IS members are engaging their constituencies in finding sustainable solutions to public problems and in strengthening civic participation and democracy.
IS Members Promote Volunteering with Country Music Television
Hands On Network, VolunteerMatch, and Habitat for Humanity are among the organizations that have partnered with Country Music Television to launch a campaign to motivate one million Americans to participate in volunteer activities by the end of 2007. As part of “The Power of One”, CMT has created a portal in its website that enables its viewers to match their interests with volunteering opportunities in their communities. A wide range of public service announcements will also promote volunteering and publicize the campaign.
Kellogg Foundation Strengthens the Voice of Rural America
The W.K. Kellogg Foundation is supporting a multi-year initiative that seeks to build organizations and networks so they can develop policies that will improve the lives of rural people and the vitality of rural communities. Over the next five years of Rural People, Rural Policy, Kellogg plans to support 125 organizations across the country that will help rural people address a broad range of economic and social issues affecting their areas. The initiative will work with networks in four specific regions -- the Southwest, the Mid South, Central Appalachia, and the Midwest/Great Plains -- as well as with a final network encompassing the rest of the country.
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Ethics News from IS Members
AGB Releases Book on Board Performance
The Association of Governing Boards of Universities and Colleges has published Making the Grade: How Boards Can Ensure Academic Quality, which offers an expert examination of the tensions that must be acknowledged if boards are to significantly contribute to their institutions' advancement of academic quality.
SCANPO Offers Workshop on Financial Management
South Carolina Association of Nonprofit Organizations is offering a financial management workshop on January 16 in Columbia. Attendees will learn about auditor responsibilities for assessing risks, economic trends, the influence of the internet, and scams. The workshop will also address nonprofit governance issues at a time when the public is demanding more accountability and the IRS is stepping up enforcement.
ASAE & The Center Offers Course on Financial Management
ASAE & The Center for Association Leadership will be offering a course January 25 in Washington, D.C., for CEOs and COOs who need to strengthen their financial capabilities. Topics will include identifying and developing additional sources of revenue; lessening the chances of fraud occurring through the use of good internal controls; and understanding how the Sarbanes-Oxley Act affects associations.
Association of Small Foundations Hosts a 990-PF Tax Seminar
Association of Small Foundations will offer a 990-PF Tax Seminar on February 20 in Houston, Texas. Attendees will develop a better understanding of the five percent payout, keeping trustees out of trouble, grants to non-charities, expenditure responsibility, and methods for saving the foundation money.
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IS Introduces Revised Dues Structure
Independent Sector has distributed its renewal notices to approximately 350 organizations whose memberships expired on December 31. These notices are the first based on the restructured dues schedule that IS membership approved at the annual business meeting in October.
The dues schedule is available on the IS website. Individuals who have questions about their organization’s membership are encouraged to contact the membership department at 202-467-6161.
Independent Sector is also pleased to introduce the “Member Plus” program, through which members can make additional contributions to IS’s work. Details are included in the renewal notices.
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Members at Work
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People, places, and projects from IS members -- click here to read the full text of each item.
Welcome to the organizations that have joined or rejoined the IS network.
Phoenix House, New York, NY. Phoenix House reclaims disordered lives; encourages individual responsibility, positive behavior, and personal growth; strengthens families and communities; safeguards public health and promotes a drug-free society through prevention, treatment, education and training, research, and advocacy.
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Baton Rouge Area Foundation, Baton Rouge, LA. The Baton Rouge Area Foundation unites human and financial resources to enhance the quality of life in Louisiana’s capital region.
Members in the News
The Center for Lobbying in the Public Interest Releases Legislative Advocacy Guide for Nonprofits
Center for Effective Philanthropy
Suggests Size and Duration of Grants May Be as Important as Type
Gates Foundation Plans to Focus Work on 21st Century
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People on the Move
Marc Freedman, Civic Ventures
Peter Lenher, National Resources Defense Council
Richard Murphy, Salk Institute for Biological Studies
Click here to read the full text of each item.
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Speakers Bureau
- Washington, DC -- On January 5, Diana will be speaking to a large gathering of college seniors -- facilitated by American Humanics in partnership with the Points of Light Foundation and the Corporation for National and Community Service -- about the importance of their leadership within the nonprofit community.
- Baltimore, MD -- On January 31, attendees at the Association of Baltimore Area Grantmakers’ breakfast launch of its new principles for good governance and stewardship will hear Diana's keynote address about the issues facing the nonprofit community.
Meetings
- Legislative and Regulatory Advisory Committee Meeting,
Washington, DC, January 4
- 2007 Annual Conference Host Committee Meeting,
Los Angeles, CA, January 10
- Board Development Committee Conference Call, January 18
- Policy Action Network Conference Call, January 19
- Panel on the Nonprofit Sector’s Advisory Committee on Self-Regulation Conference Call, January 25
Staff Changes
- Communications and Media Associate Elizabeth Jenkins has left IS to move to Chicago. While Elizabeth focused on helping reporters understand the work of IS and the nonprofit community, she was also an important part of the production of the IS Annual Conference and of the Daily Media Digest.
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Independent Sector
1200 Eighteenth Street, NW, Suite 200
Washington, DC 20036
202-467-6100 phone | 202-467-6101 fax |
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