The congressional debt deal "super committee," charged with determining how to reduce the federal deficit, could consider proposals to reduce or cap the value of the charitable deduction.
In addition to raising the U.S. debt ceiling, the Budget Control Act of 2011 (S. 365) created a 12-member, bipartisan Joint Select Committee on Deficit Reduction (also known as the super committee) to determine how to reduce the federal deficit. If the committee fails to identify spending cuts or revenue increases by Thanksgiving, federal agencies will be subject to across the board spending cuts.
To raise revenue, the super committee may consider President Barack Obama's proposal to cap itemized deductions, including the charitable deduction, at 28 percent for high-income taxpayers (individuals earning $200,000 annually, $250,000 for households). According to the president's FY2012 budget plan (pdf), this proposal would raise more than $300 billion over 10 years. However, congressional Republicans have indicated they will not support revenue-raising proposals.
CASE strongly opposes proposals that would reduce the value of the charitable deduction. On July 14, CASE and 22 other nonprofit associations and organizations sent a joint letter (pdf) to lawmakers urging them to protect the value of the charitable deduction by opposing efforts to cap the value of itemized deductions for charitable contributions. CASE will also share this message with members of the super committee:
CASE members are encouraged to share updated talking points and background information with their government relations staff and donors. Subscribe to CASE's legislative RSS feed for the latest developments on efforts to reduce the value of the charitable deduction.
Have questions or ideas you want to share with your colleagues in institutionally related foundation management, budget and finance? Join CASE ‘s new IRF-CFO-L, a listserv exclusively for IRF financial and operations staff members, including chief operations officers and chief financial officers.
To join IRF-CFO-L, visit the CASE website. Note that IRF-CFO-L is open only to IRF financial and operations staff. All foundation staff members are welcome to join IRF-L, CASE's general listserv for institutionally related foundation professionals. If you have questions, please contact Brian Flahaven at flahaven@case.org or 202-478-5617.
The Voluntary Support of Education survey is considered by many to be the authoritative national source of information on private giving to higher education. However, community college participation in the survey has remained low. Of the 938 two-year schools that were mailed surveys last year (pdf), only 155 took part. Arguing that the survey is an invaluable tool for their field, many community college officials say they would like to see more of their peers participate.
On Wednesday, Sept. 21, CASE will host a free webinar for community college foundations on the VSE survey, which is managed by the Council for Aid to Education and co-sponsored by CASE. The webinar will provide an introduction to the survey, show some of the many ways community college advancement professionals can use data from it, and provide guidance on completing the instrument. Featured speakers include:
Register for the webinar on the CASE website.
The webinar is one of many programs and resources being offered by the CASE Center for Community College Advancement.
A new study reveals that during the past academic year, 100 percent of surveyed colleges and universities reported using social media-and thinking about the strategy behind it.
Researchers interviewed more than 450 colleges and universities in all 50 U.S. states for the study on higher education social media use by the University of Massachusetts Dartmouth's Center for Marketing Research.
"Colleges and universities are using social media, especially social networking sites, not only to recruit but to research prospective students," wrote study authors Nora Ganim Barnes and Ava M. Lescault. "Additionally, schools are now moving away from some tools and embracing others, demonstrating a more strategic approach to their online communications."
Facebook is still the most common network used with 98 percent of colleges and universities having accounts. Bigger jumps in adoption were found with Twitter (84 percent, up from 59 percent) and podcasting (from 22 to 41 percent) since 2009-2010. The study also included Foursquare and YouTube for the first time and found that 20 percent and 86 percent of schools, respectively, used the channels.
The study also found that:
State Seeks Data on Pay of Leaders at Nonprofits
New York Times, Aug. 25, 2011
A task force created by New York Gov. Andrew Cuomo has sent letters asking about executive and board compensation to nonprofit organizations that receive state money. Nonprofit boards are being asked to respond to the letter. The task force plans to compile the data and make recommendations for compensation reform.
Full Article
Broome Sues BU, Foundation Over Mineral Lease
Binghamton Press & Sun-Bulletin, Aug. 25, 2011
Broome County New York is suing both Binghamton University and the Binghamton University Foundation seeking documents related to a mineral rights lease. The county attempted to obtain the documents through the state's Freedom of Information Law but the foundation, which owns the land, is not subject to FOIL.
Full Article
Two Thirds of Donors Plan to Cut Back on Giving This Fall
Chronicle of Philanthropy, Aug. 24, 2011
A recent Dunham+Company survey found that two-thirds of respondents plan to cut back on giving to charity in the coming months. Donors cited economic uncertainty and personal financial issues as the main reasons for cutting back. The survey was of adults who donated at least $20 in the past year.
Full Article
Hunkering Down, Colleges Rethink Financial Strategies
Chronicle of Higher Education, Aug. 21, 2011
Colleges and universities are still facing budget challenges as states continue to cut higher ed funding and as philanthropic giving to education slowly recovers. Colleges are increasingly looking to students, faculty and staff to help meet their budget challenges-tuition is rising and many faculty and staff salaries remain frozen. Institutions are also re-evaluating academic programs and asking departments to contain costs.
Full Article (subscription required)
Legislature Passes Bill on College Aid Group Disclosures
Sacramento Bee, Aug. 19, 2011
A bill that would subject college auxiliary organizations, including institutionally related foundations, to the California Public Records Act has passed both the California House and Senate and is expected to be signed by Gov. Jerry Brown. Former Gov. Arnold Schwarzenegger vetoed two previous attempts to subject IRFs to the Public Records Act, citing concerns about protecting donor anonymity. The University of California and California State University systems both support the current version of the bill.
Full Article
Contact Brian Flahaven, director of legislative, foundation and recognition programs, at flahaven@case.org.
IRF Update reports news and activities of interest to institutionally related foundations.
