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We have restructured our public policy section to show issues
by topic. Visit our index here.
Other Federal Issues
Bankruptcy Protection to allow for
Charitable Donations (2006)
Bush Order
Limits Agencies “Guidance” (2007)
Combined Federal Campaign (2006)
Do Charities Serve Diverse
Communities? (2007)
Independent Sector (IS)
Announces Value of Volunteer Work for 2006 (2007)
National Council of Nonprofit
Associations- Blueprint for Action (2005)
Postal Rate Increase Announced (2007)
State Children’s Health Insurance
Program (2007)
Student Loan Forgiveness for
Nonprofit Employees (2007)
Urge Congress to Approve IRA Rollover Provision
State Children’s Health Insurance
Program
10/10/07 Urge Congress to
Override President’s SCHIP Veto; Deadline extended to October 15. Sign-on
to Urge Congress to Override the President’s SCHIP Veto before
the October 15 deadline. Help the
Coalition on
Human Needs bring much needed healthcare coverage to 4
million new uninsured American children.
The President vetoed the children's health insurance bill
and has threatened to veto appropriations bills that fund
critical human needs programs. The US House will vote to
override the President's State Children's Health Insurance
Program (SCHIP) veto on October 18.
Sign your organization's name to the letter by
October 15, and encourage others to do the same. Pennsylvania
is one of a dozen states whose Congressional votes can make
the difference.
Individuals are asked to urge Congress to override the
President’s veto. Go to the Coalition on Human Needs
ACTION ALERT. For more information on the Coalition
on Human Needs go to
http://www.chn.org/.
9/25/07 House Passes SCHIP Re-authorization Bill; But Falls
Short to Override. Presidential Veto. After a heated floor
debate the US House of Representatives voted to reauthorize
the State Children’s Health Insurance Program (SCHIP) by a
vote of 269 to 159. While this vote is sufficient to pass the
bill in the House, the vote falls short of the 290 votes
needed (2/3 majority) to override the President’s veto threat.
H.R.976 would reauthorize Federal funding for the Children’s
health insurance program for the next 5 years. This bipartisan
bill would provide healthcare surgical, dental, mental health
and prenatal care for 10 million children from low income
families. Children of illegal aliens are not entitled to
receive benefits, but critics claim that the enforcement
mechanism is weak. The Senate will take up SCHIP later this
week. Because SCHIP funding is expected to expire in 5 days,
an extension will be provided through a Continuing Resolution
(CR) on Wednesday. The President will not veto the CR. For a
summary from the Center for Budget and Policy Priorities go to
http://www.cbpp.org/9-25-07health2.htm For an explanation of
misleading statements by the Administration go to http://www.cbpp.org/9-20-07health.htm
Do Charities Serve Diverse
Communities?
9/25/07 US House W&M Hearing
Asks “Do Charities Serve Diverse Communities?” On
September 25, the US House Ways and Means Oversight
Subcommittee held a hearing examining whether tax-exempt
charitable organizations adequately serve the needs of diverse
communities. Oversight Subcommittee Chairman John Lewis (D-GA)
asked the hard questions “how well do charities serve the
needs of our diverse communities?” and “how can we serve their
needs better?” While one witness from the Urban Institute
demonstrated statistically that people of every economic,
racial, and ethnic group give and volunteer to nonprofit
organizations, an additional witness spoke about the mismatch
between philanthropy and need.
House Ways and Means Hearings
Chronicle of Philanthropy Article
Student Loan Forgiveness
9/28/07
President Signs College Cost Reduction and Access Act;
Nonprofit Employees Get Student Loan Relief. The President
Signed the largest investment in higher education since the GI
Bill today, the College Cost Reduction and Access Act will
apply to 501(c)(3) nonprofit employees. Charity employees are
eligible for college loan balance forgiveness after 10 years
of payments under an income contingent repayment plan. Many
restricts will likely apply, but this is a major investment in
affordable education for both the public sector and the
nonprofit sector. H.R.2669 is now Public Law No: 110-84.
Summary of the bill from the US House Committee on
Education and Labor
Summary
of the bill as it passed the Senate amended
(7/20/2007)
9/11/07 Congress Passes
Student Loan Bill with Debt Relief to Nonprofit Employees.
The Senate passed legislation that would cut over $20 billion
in federal subsidies to institutions that create student loans
in order to increase financial aid to college students. In the
largest investment in higher education since the GI Bill, the
College Cost Reduction and Access Act (H.R. 2669) offers
Student Loan Debt Relief to nonprofit employees. On September
7, both houses of Congress approved the conference committee
report for H.R. 2669 that would include employees of 501(c)(3)
organizations as 'public sector' employees for purposes of a
new loan forgiveness provision. The legislation includes
workers for 501(c)(3) tax exempt organizations as a 'public
sector job' making the individual eligible for loan balance
forgiveness after 10 years of payments under an income
contingent repayment plan. The bill also provides interest
rate reductions on subsidized student loans, caps on required
repayments based on available discretionary income, and -
increasing Pell Grants in amount and broadening eligibility.
The President is expected to sign the bill.
Conference Committee Report
For the
summary of the bill that passed the House on July 17,
2007- (the latest summary available)
7/23/07 House Bill Offers Student Loan Forgiveness for
Nonprofit Employees. The College Cost Reduction Act of
2007 (HR 2669) is making its way through Congress right now.
The bill may need a push from us to ensure that employees of
501(c)(3) organizations can take advantage of a provision
geared towards supporting students in loan repayment. Further
information is below.
Under current law, “income contingent” repayment plans are
available to anyone having trouble repaying student loans. The
individuals need only opt to pay back student loans based on
an affordable percentage of their salary. Unpaid amounts are
to be forgiven after 25 years.
The House version of HR 2669 would allow the individual to
repay student loans based on an affordable percentage of their
salary, but forgive unpaid amounts after 10 years if working
for an eligible employer. Eligible employers include federal
and state government, specific social and emergency services,
501c3 organizations, and others. HR 2669 passed the House on
July 11 by a 273-149 margin.
The Senate version of HR 2669 is similar to the House
version but does not include the 501(c)(3) provision. Some
501(c)(3) organizations may be included through other
categories such as social and emergency services, but most
501(C)(3)’s are not considered eligible employers. HR 2669
passed the Senate July 20 by a 78-18 margin.
Both versions of HR 2669 were referred to conference
Committee to reconcile the House and Senate differences. A
conference report is expected before the August recess. It is
uncertain whether the 501(c)(3) provision (as appears in the
House version) will remain in the final bill.
As the costs of a college education continues to rise,
nonprofit sector wages fail to keep pace with for-profit
sector wages, young people are being driven away from the
nonprofit sector. For so many young people saddled with
student loan debt, it is becoming increasingly difficult to
seriously consider jobs with nonprofits, especially smaller
local organizations that typically offer lower salaries.
According to a recent survey, over two-thirds of
Philadelphia’s Nonprofit Executive Directors plan to leave
their positions within the next three years 2010.
By extending loan forgiveness to 501(c)(3)’s HB2669 would
make a career in nonprofits a feasible and attractive option
for many of Pennsylvania’s best and brightest.
Please contact your Member of Congress and urge the
Conference Committee to preserve the House 501(c)(3) provision
in HR2669. It is essential that the final version of this bill
includes student loan forgiveness for charitable nonprofit
organizations.
4/4/07
Independent Sector (IS)
Announces Value of Volunteer Work for 2006. IS has just
released their calculation for 2006 estimating the value of a
volunteer work at $18.77 per hour. Many organizations find
this estimate helpful in quantifying the enormous value
volunteers provide. For more information, go to
http://www.independentsector.org/media/20070330_Volunteer.html.
3/30/07
Postal Rate Increase Announced. The USPS issues final
rule and announced a postal rate increases. The New standards
for domestic mailing services final rule (POSTAL SERVICE 39
CFR Part 111) is an attempt by the USPS to recognize the
impact on costs of different shapes, and try to maximize
economic efficiency within the mailing industry. The new rates
are effective as of May 14. For a copy of the rates, go to
http://www.usps.com/ratecase/.
1/18/07
Bush Order
Limits Agencies “Guidance.” President Bush issued an
executive order sharply curtailing the power of agencies to
regulate industry through issuance of "guidance". Guidance is
the informal advice provided by Federal Agencies clarifying
the regulations. Federal Agencies issue guidance to interpret
key policy and technical questions, often at the request of
industry. Guidance is not an official rule and is not legally
binding. However, businesses including charities, pay close
attention to it.
While some argue that this is a power grab by the
president, others argue that the use of guidance has gotten
out-of-hand and should be subject to oversight by the OMB. The
Labor Department's Occupational Safety and Health
Administration, for example, issued 574 guidance documents
between 2001 and 2005, many directed at the construction
industry.
The order requires agencies to state in writing "the
specific market failure" that the new rule intends to cure, to
project the cost of a new rule; to request and receive prior
approval by the White House Budget Office for any new rule
with economic impact of over $100 million, and to make such
rule available for public comment.
OMB Watch has more information about this here:
http://www.ombwatch.org/article/articleview/3685/1/132?TopicID=3.
President Bush’s Executive Order is here:
http://www.whitehouse.gov/news/releases/2007/01/20070118.html.
1/17/07 US House Ways and
Means Committee to hold January 23 hearing on how US economic
growth has resulted in income inequality, and low wages.
New House Ways and Means Committee Chairman, Charles Rangel
(D-NY) announced Tuesday that the Committee will hold the
first in a series of hearings on the economic condition of the
U.S. economy. The hearings will examine the current state of
the economy, the cost of poverty on the American economy, the
impact of globalization on American workers, economic
pressures on the middle class, and whether all Americans have
shared in the benefits of the economic recovery since the last
recession. For more information go to House Ways & Means
Committee at
http://waysandmeans.house.gov/hearings.asp?formmode=view&id=5387.
10/11/06
U.S. House May Consider Bill Protecting Charitable
Donations from Bankruptcy. The House is expected to
consider S. 4044 a bill to allow individuals in bankruptcy to
give to charities and churches even though they are bankrupt.
The Senate passed S. 4044 in September. The bill is designed
to correct problems caused by the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2005. Courts have interpreted
the language in this Act to prohibit individuals in bankruptcy
who have incomes above the median level to continue to give to
charities or tithe to churches while they are in bankruptcy.
10/11/06
OMB Watch Launches Online
Federal Spending Database. OMB Watch launches much
anticipated online database allowing you to search, aggregate
and analyze all federal spending, (www.FedSpending.org). The
data comes from the Federal Procurement Data System (FPDS),
which contains information about federal contracts; and the
Federal Assistance Award Data System (FAADS), which contains
information about federal financial assistance such as grants,
loans, insurance, and direct subsidies like Social Security.
We encourage you to explore this data and to use this data to
hold elected leaders and government agencies accountable for
their policy choices and their actions. For more information
go to
http://www.ombwatch.org/article/articleview/3608/1/2?TopicID=.
Simultaneously, President Bush recently signed into law the
Federal Funding Accountability and Transparency Act (S. 2590).
This new law requires the Office of Management and Budget to
create and maintain a searchable public database disclosing
all federal grants, loans, and government contracts. The
government website will not be online until January 2008.
The differences between the two websites, OMBWatch’s
website (www.FedSpending.org) and the government website
(www.expectmore.gov), are numerous. The government database
will broaden the scope of information to cover all federal
spending, while FedSpending.org is limited to the FPDS and
FAADS databases. The government database is required by law to
post updated information within 30 days after being assigned
the information, while FedSpending.org will only be updated
every six months. The government database will also be
expanded by 2009 to include subcontract and subgrants.
CFC
3/14/07 Office of Personnel
Management Lifts CFC Cap on Fundraising Overhead. The
Office of Personnel Management (OPM) lifts overhead spending
restrictions on fundraising in the Combined Federal Campaign
(CFC). The OPM which administers the charity drive, dropped
the requirement that charities spend no more than 25 percent
of their revenue on fundraising and other overhead expenses.
In a March 12 news release, OPM Director Linda M. Springer,
offers assurances that the CFC remains a program that federal
employees can support with confidence, and that each
participating charity must meet stringent eligibility and
public accountability requirements. While she acknowledges
concerns about the elimination of the 25 percent
administrative and fundraising rate (AFR) requirement to
participate, she notes that numerous organizations in prior
years have participated in the CFC with AFRs in excess of 25
percent. Those organizations provided an accepted explanation
and a plan to reduce their AFR. For a copy of the OPM news
release go to
http://www.opm.gov/news/opm-director-linda-m-springers-statement-on-the-combined-federal-campaign-cfc,1157.aspx.
Senate Finance Committee Ranking Member Charles E. Grassley
(R-Iowa) opposes the CFC rule change, and may actively oppose
it by discouraging federal employees from giving. For Senator
Grassley’s March 12 news release go to
http://finance.senate.gov/press/Gpress/2007/prg031207.pdf.
12/13/06 CFC Removes Anti-Advocacy Requirements from
Qualification Regulations. This week, the Combined Federal
Campaign (CFC) announced that it will remove anti-advocacy
requirements from their qualification regulations. Previously,
to be eligible to receive donations through the CFC,
organizations applying to participate were required to certify
that "the organization has no expenses connected with lobbying
and attempts to influence voting or legislation at the local,
state, or federal level, or, alternatively, that those
expenses would classify the organization under U.S.C. 501(h)."
Thanks in part to the work of the Alliance for Justice, the
regulations have been changed to remove lobbying restrictions.
Copy of the
new regulations.
PANO is a member of the National Council of Nonprofit Associations
(NCNA). For other updates, visit their public
policy website.
The Nonprofit Agenda: A Blueprint for Action, national
policy recommendations from the Nonprofit Sector written by
the National Council of Nonprofit Associations with input
provided by many state associations including Pennsylvania,
was recently sent to all Pennsylvania representatives to the
United States House of Representatives as well as Senator
Arlen Specter and Senator Rick Santorum. These recommendations
will help to strengthen the ability of nonprofit organizations
in Pennsylvania to serve and advance their communities. This
document provides national policy recommendations that, if
implemented, would go a long way in supporting and sustaining
efforts to assure that all citizens in Pennsylvania lead
productive and healthy lives.
For more information on the Nonprofit Agenda: A Blueprint
for Action visit:
http://www.ncna.org/index.cfm?fuseaction=Page.viewPage&pageID=
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