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For Immediate Release
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Senate Finance Committee Invites Sector-Wide Input
to Improve Governance and Practice |
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(Washington, DC, October 12, 2004)—Independent Sector
today announced the creation of a national panel that will make
recommendations to Congress to improve the oversight and
governance of charitable organizations. IS formed the "Panel on
the Nonprofit Sector" at the encouragement of Finance Committee
Chair Charles Grassley (R-IA) and Ranking Member Senator Max
Baucus (D-MT).
In their letter to Independent Sector,
Senators Grassley and Baucus noted that “there is great value in
your bringing together an independent group of leaders with
broad experience… We would welcome the recommendations that will
be forthcoming from such a panel to assist our legislative
efforts.” The Finance Committee asked that the panel provide a
report of its initial findings and recommendations by February
2005 and a final report in the spring of 2005.
The Senators’ call for further study and recommendations is part
of a year-long focus on the nonprofit sector by the Senate
Finance Committee in response to numerous reports in the media
of ethical lapses in governance, fundraising, and other
practices. In June, the Finance Committee held hearings and
released a discussion paper exploring a number of changes in the
law governing the charitable sector. In July, the Committee
convened a roundtable of sector leaders to discuss further
possible reforms.
The Panel on the Nonprofit Sector is comprised
of 24 nonprofit and philanthropic leaders from a wide spectrum
of public charities and private foundations from all parts of
the country, reflecting diversity in mission, perspective, and
scope of work. Paul Brest, president, William and Flora Hewlett
Foundation, of Menlo Park, California, and Cass Wheeler, chief
executive officer, American Heart Association, of Dallas, Texas,
will serve as co-conveners of the group. Diana Aviv, Independent Sector president and CEO, is executive director,
and Patricia Read, IS’s senior vice president for public policy
and government affairs, is project director.
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“The charge set out by the Senate Finance Committee is
substantial and there is a limited time period to complete this
effort,” Ms. Aviv said. “The Panel’s findings and
recommendations will require participation and input from many
organizations within our sector to have a meaningful impact on
legislation, regulations and practices that will define the
future of our work.”
The Panel will establish two advisory groups: one of prominent
community leaders, including those from other sectors. The
second advisory group will include a range of academic and legal
experts. The Panel also will create five working groups to study
and provide recommendations on issues involved in governance,
transparency and financial accountability, oversight of sector
organizations, the legal framework for regulating charities and
foundations, and specific recommendations concerning small
organizations. The Panel will pay special attention to examining
the sector’s existing mechanisms for self-regulation and
oversight, and compile a report of such activity.
Areas for exploration include, though are not limited to:
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rules and regulations affecting composition
and duties of boards of directors,
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compensation issues,
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guidelines on travel expenditures,
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greater clarity on reporting Forms 990 and
990PF, as well as new disclosure requirements,
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potential new fees for tax-exempt applications
or annual filing requirements, and
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the proper roles of self regulation and
government regulation.
“The excitement in coming together—from across
disciplines and from organizations large and small—is palpable,”
said Mr. Wheeler, co-convener of the Panel. “I am delighted to
serve on the Panel and look forward to the meaningful
contributions it will make to the good works of the sector.”
“This is an important opportunity for our sector to take up the
challenge of looking at how we conduct our business,” said Mr.
Brest, co-convener. “We hope that the broad experience and
expertise of this diverse panel can be of real assistance to the
Senate Committee.”
Private and community foundations, as well as public charities,
are being invited to share in the cost of ensuring broad
participation from the sector and in securing the necessary
technical and legal experts to inform the Panel’s work. The
funds raised, while managed by IS, will be devoted exclusively
to this endeavor. ###
Independent Sector is a nonprofit, nonpartisan coalition of approximately 600 charities, foundations, and corporate philanthropy programs, collectively representing tens of thousands of charitable groups in every state across the nation. Its mission is to advance the common good by leading, strengthening, and mobilizing the nonprofit community.
Independent Sector Contact:
Patricia Nash Christel
Phone: 202-467-6100
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