June 13, 2002 | Read Time: 2 minutes
Numerous bills affecting charities are now pending in Congress, but time
is growing short for legislators to act on the measures.
Less than four months remain to work on bills during this session, since lawmakers will be out for the month of August, as well as the week of July 4.
The calendar is further complicated by the fact that Congress hasn’t yet completed any of 13 spending bills for the federal agencies that it must act on in order to keep the government running.
Among the charitable bills most likely to pass are a measure to restructure and extend the life of the Corporation for National and Community Service, and the Charity Aid, Recovery and Empowerment (CARE) Act.
The CARE Act contains several different tax breaks designed to encourage giving by companies and individuals. It also attempts to make it easier for religious groups to seek federal funds and would reduce the excise tax on foundations to 1 percent from the current 2 percent.
The CARE Act enjoys strong support from President Bush and many charities, but it also has many critics.
The Heritage Foundation just released a report that says the provisions in the bill — including one that would allow people who do not itemize on their income-tax returns to claim a deduction for some of their charitable gifts — would do little to stimulate charitable giving because the incentives lapse after two years. Heritage also says the CARE Act would provide little real assistance to religious groups seeking federal funds.
The National Committee on Responsive Philanthropy, a watchdog group in Washington, also says the deduction for people who don’t itemize would be ineffective, and urges that foundations should be required to use any money they save from a tax cut for additional grants to nonprofit groups.
Corporate Donations
Among the bills that face the biggest opposition, and are perhaps least likely to pass, are a set of post-Enron proposals on accounting rules, which includes a requirement that companies report the donations they make to charity.
In addition to bills that would directly affect charities, nonprofit organizations are closely watching other legislation that could affect their work and the people they serve, including legislation to extend and modify the nation’s welfare system.
The House passed its welfare bill last month, and three different versions of the welfare bill await consideration by the Senate Finance Committee.
