Campaign Financing Is Top Concern of Nonprofit Leaders in Online Survey

By ELIZABETH SCHWINN

Nonprofit leaders have plenty of suggestions for the next president of the United States,

such as calls for tax incentives to increase charitable donations. But their top priority for the new occupant of the White House doesn’t directly affect philanthropic gifts.

In an online survey of about 1,000 organizations, charity leaders said the most important thing the new president can do is overhaul the nation’s campaign-finance system. “Clearly, nonprofit advocacy organizations that do not make campaign contributions are less likely to influence policy decisions in an environment where money talks louder than principles or even votes,” wrote one survey participant.

Also high on the list were recommendations to abolish red tape for charities that receive federal grants and contracts.

Nonprofit leaders were asked to rank in order of priority 35 issues that dealt with a broad spectrum of topics, including nonprofit accountability, tax incentives to encourage nonprofit employment and charitable donations, and collaborations between charities and governments.

The survey was conducted by four organizations in Washington: the Advocacy Institute, which trains charities in how to lobby for social and political change; the National Committee for Responsive Philanthropy, a watchdog group; OMB Watch, an organization that monitors federal budget and spending policies; and the Union Institute Office for Social Responsibility.

The survey was conducted through a Web site and by e-mail during two weeks in September.

The results will be used to draft a series of recommendations to be presented to the candidate elected president next week and the staff members who will be leading the transition to a new administration.

Federal Spending

Survey respondents were asked to rank the 35 issues presented to them on a scale of 1 to 5, with 5 being an issue that should receive the highest-level priority. Campaign-finance overhaul received an average rating of 4.35, the highest average for any issue.

After campaign financing, charities responding to the survey ranked the following four issues as most important:

• Spending the federal budget surplus to help people served by nonprofit groups through programs such as universal health insurance and universal preschool.
• Streamlining government grant applications and reporting requirements for nonprofit groups, developing uniform application and reporting requirements, and making sure that such rules are developing in coordination with state and local requirements.
• Allowing people who don’t itemize on their income tax returns to deduct their charitable gifts.
• Encouraging federal agencies to consult with nonprofit organizations on regulations and programs that affect those they serve.

Respondents also favored encouraging nonprofit careers by forgiving student loans or granting favorable tax treatment to employees of nonprofit groups, and increasing the number of volunteers by extending federal programs such as VISTA and expanding the application of the Volunteer Protection Act.

They also supported tax breaks for donors, including letting people transfer money tax-free from their individual retirement accounts or other pension plans to charity and establishing tax credits for charitable contributions at the state level.

Respondents also offered their own ideas, suggesting that the administration should conduct a national census of nonprofit groups, cut postage for bulk mailings done by charities, and provide or subsidize health insurance for nonprofit employees.

Weekly Radio Messages

Several said the administration needs to fight racism, which the nonprofit leaders said contributes to many social ills. One suggested that in the president’s weekly radio address, he should highlight a nonprofit group that is working effectively on the topic that is the subject of the broadcast. Another said that a congressional fellows program for nonprofit employees could be beneficial.

Organizers of the survey said they were surprised by the prominence of campaign financing on the priority list.

Gary Bass, executive director of OMB Watch, said he was “flabbergasted.” He added: “The nonprofit community is not known as a strong voice on that issue.”

Mark Rosenman, vice president for social responsibility at the Union Institute, said the high ranking showed that nonprofit groups realized that they could not compete against big political donors for the attention of members of Congress. “Until the corrosive influence of money on politics can be abated, public-interest groups will never have as powerful a voice as they should,” he said.

Sixty-eight percent of the respondents worked at charities or foundations. Half of the rest were more or less evenly split among advocacy groups classified under Section 501(c)(4) of the Internal Revenue Code, government agencies, and for-profit organizations. The remainder either did not identify themselves or described themselves as “other.”

Representatives of a variety of nonprofit organizations will analyze the survey results to draft a series of recommendations for action to present to the president. Results of the survey are posted on OMB Watch’s Web site at http://www.ombwatch.org. The recommendations drafted by the nonprofit groups are expected to be posted on the site in early November. Or, people can obtain a copy of the survey or the recommendations by calling or writing OMB Watch at 1742 Connecticut Avenue, N.W., Washington 20009; (202) 234-8494. Questions about the survey should be addressed to Kay Guinane.