May 12, 2005 | Read Time: 2 minutes
A coalition of 68 conservative and religious groups has asked Senate Majority Leader William H. Frist to block the Senate Finance Committee from taking actions that would change the way charities, foundations, and donors operate.
The Senate panel has spent more than a year reviewing nonprofit groups to see whether some organizations and donors are breaking tax laws, and the committee is considering changes in federal law to prevent abuses (The Chronicle, April 14).
The coalition of groups — which include the American Conservative Union, the Coalition of African-American Pastors, the Family Research Council, Focus on the Family, the Institute for Justice, the Philanthropy Roundtable, and the Traditional Values Coalition — wrote Mr. Frist, a Tennessee Republican, that they are “deeply concerned” about ideas aides to the Senate committee have floated, including some that would limit tax deductions for noncash gifts and subject board members to new liability standards.
“As people who know charitable institutions from the inside out, we regrettably have to say that this new regulatory burden would greatly decrease our ability to serve our fellow citizens,” said the letter from the 68 groups, who call themselves Coalitions for America.
A staff member for the Senate Finance Committee, who asked not to be identified, said the panel is simply studying options for new legislation. Once the committee has drafted a bill, the staff member said, “we think folks [in Coalitions for America] will realize a lot of the concerns they’ve expressed are not an issue.”
The staff member added that the Finance Committee has talked to officials of many of the groups that sent the letter and will continue to listen to their concerns.
Separately, Sen. Rick Santorum, a Pennsylvania Republican, has asked the Philanthropy Roundtable, a Washington group that represents donors, foundations, and corporations, to evaluate the proposals under review by the Senate Finance Committee.
“Any information you can provide on specific facts, specific circumstances, and possible ‘unintended consequences’ of the published proposals, as well as your suggestions for alternatives, are welcomed,” wrote Mr. Santorum.
