Charles Bacarisse—Vice President for Advancement
Houston Baptist University—Houston, Texas
United States
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IRF Update - Dec 29, 2010

Take the Foundation Funding Survey

How are your public college and university foundation peers funding their operations? How many institutionally related foundations rely on gift fees? To determine answers to these questions and more, CASE has launched a Foundation Funding Survey. The survey is designed to:

  • Update information on how foundations fund their operations
  • Determine how many foundations rely on gift fees and how the fees are structured
  •  Make it easier for foundations to compare their funding sources with peers
  • Provide foundations with trend data that they can share with their boards and host institutions

The 10-15 minute survey is open to CASE members and nonmembers. Note that all information regarding individual foundations and institutions will remain confidential. Survey participants who provide their contact information will receive a copy of the final analysis. The survey deadline is Friday, Jan. 14, 2011.

Thank you for participating in the survey!

Estate Tax, IRA Charitable Rollover Extensions Signed Into Law

On Dec. 17, U.S. President Barack Obama signed H.R. 4853 (pdf) into law, a tax bill that temporarily extends the federal estate tax and IRA charitable rollover.

Both the House (277-148) and Senate (81-19) passed the bill, which also extends the current marginal tax rates for all taxpayers through 2012.

H.R. 4853 renews the federal estate tax for two years (through Dec. 31, 2012) at a 35 percent rate with the first $5 million ($10 million for households) of an estate exempt from tax. An attempt by House Democrats to change the estate tax provision in the bill failed. House Democrats wanted the estate tax to revert to its 2009 levels (45 percent tax rate, $3.5 million exemption). During the next two years, CASE will continue to advocate for a permanent extension of the estate tax at its 2009 levels.

The bill also retroactively extends the IRA charitable rollover from Jan. 1, 2010, through Dec. 31, 2011. The IRA charitable rollover allows taxpayers starting at age 70 ½ to direct up to $100,000 per year from their individual retirement accounts to eligible charities without counting the distributions as income for tax purposes. H.R. 4853 allows taxpayers who make IRA charitable rollover gifts in January 2011 to count those gifts toward the 2010 tax year (the $100,000 limit still applies).

H.R. 4853 was the result of negotiations between President Obama and Senate Republicans. On Dec. 10, CASE joined higher education association colleagues on a letter (pdf) urging the Senate to extend key higher education tax incentives, including the IRA charitable rollover.

Stay up to date on this issue as well as the latest legislative and regulatory developments affecting advancement by subscribing to the CASE Legislative Update RSS Feed.

CASE Seeks Director for New Center for Community College Advancement

CASE is seeking a director to lead the new CASE Center for Community College Advancement, which will launch in mid-2011.

The center will focus on developing and delivering training and resources that serve the unique needs of alumni relations, communications, fundraising and marketing professionals at community colleges and their foundations. See the job posting for more information about the position and how to apply.

Register Today for the 19th Annual CASE Conference for Institutionally Related Foundations

Join two-year and four-year public college and university foundation executives from around the country at the 19th annual CASE Conference for Institutionally Related Foundations, April 13-15, 2011, in Phoenix, Ariz. Conference highlights include:

  • A keynote address from Robert Glidden, interim president of the California Polytechnic State University, on the state of public higher education and the role of IRFs
  • A general session on recruiting and retaining staff at IRFs, featuring Chrissi Rawak, assistant vice president for talent management, finance and administration at the University of Michigan
  • An interactive session on strengthening your foundation executive team facilitated by R.J. Valentino, president and co-founder of The Napa Group
  • Sessions designed for community college foundation leaders on a variety of topics, including board development, structure and staffing, alumni relations and legal/regulatory compliance

Foundation staff can register for the conference on the CASE website. Additional information on speakers and the agenda will be announced in the coming weeks.

Once again, CASE will offer CPE credit for particular sessions at the conference.

New Gift Fee Resources, Samples Available on CASE Website

Is your foundation considering gift fees? Visit the CASE website to view a collection of gift fee sample policies, FAQs, news items and other resources compiled by the CASE InfoCenter.

Headlines

Seeding Growth: Small Gift Fees Can Be a Large Investment in Fundraising Transparency and Accountability
CASE CURRENTs, January 2011
The current economic climate has prompted more institutionally related foundations and even some private institutions to consider gift fees as a way to fund their advancement programs?. Fee structures and levels vary greatly from organization to organization. Some foundations and institutions do not charge gift fees on scholarship gifts while others assess fees only on endowed gifts. Donor communication, planning and policy development should be priorities for foundations or institutions considering gift fees.
Full Article (Subscription required. CURRENTs articles are available to CASE Professional Members.) 

Strapped Cities Hit Nonprofits with Fees
Wall Street Journal, Dec. 27, 2010
Some cities are applying new fees to schools, churches and other nonprofits, a departure from the long-standing tax exemptions granted to charitable organizations. Cities like Houston, Richmond, Va., and Lafayette, Ind., have adopted drainage fees that apply to nonprofits. Nonprofit organizations view the fees as an additional burden at a time when the demand for charitable services is at an all-time high.  
Full Article

IRS Steps Up Scrutiny of Colleges and Other Nonprofit Groups
Chronicle of Higher Education, Dec. 20, 2010
The Internal Revenue Service plans to continue its focus on compensation, unrelated business activities and other issues identified in its college and university compliance project, according to the recently released IRS FY2011 Exempt Organizations Work Plan. The IRS will also take a close look at loans and employment tax compliance at colleges, universities and other charitable organizations. Audits of 30 colleges and universities are ongoing.
Full Article (subscription required)

California College Disclosure Bill Revived
Sacramento Bee, Dec. 13, 2010
California State Senator Leland Yee (D-San Francisco) has re-introduced a bill that would subject institutionally related foundations and other auxiliaries at California colleges and universities to the state's Public Records Act. Current California Gov. Arnold Schwarzenegger vetoed Yee's bill earlier this year, citing inadequate protections for donor anonymity and privacy. Yee is confident that incoming Gov.-elect Jerry Brown will sign the bill into law. Yee's effort gained visibility when the California State University Stanislaus Foundation invited former Alaska Gov. Sarah Palin to speak at a dinner earlier this year.
Full Article 

17 More Wealthy Families Commit to Give At Least Half Their Wealth to Charity
Chronicle of Philanthropy, Dec. 9, 2010
Bill and Melinda Gates and Warren Buffett announced that 17 more wealthy donors and families have agreed to follow their "Giving Pledge," a pledge to give away at least half of their wealth to charitable organizations. The new "pledges" include Steve and Jean Case, Sidney Kimmel and T. Denny Sanford. Some critics are concerned that the new money will go exclusively to nonprofits that typically receive large donations, including colleges and universities. Bill and Melinda Gates and Warren Buffett plan to continue seeking more individuals to sign the pledge in the coming year.
Full Article (subscription required)

Limited Mortgage, Charitable Tax Breaks Preserved in Deficit Panel Proposal
Forbes, Dec. 1, 2010
On Dec. 1, President Barack Obama's National Commission on Fiscal Responsibility and Reform released its final report and recommendations for reducing the national deficit. In a blog post, Janet Novack of Forbes details the report's recommendation to significantly reduce the benefits of the charitable deduction and other tax incentives in exchange for lower marginal tax rates. If enacted, the report's "illustrative reform proposal" would eliminate the charitable deduction and replace it with a 12 percent credit to taxpayers who donate more than 2 percent of their adjusted gross income. While the commission's report failed to get the 14 votes necessary to be considered by Congress, the future of the charitable deduction will likely be a topic discussed on Capitol Hill in the coming year.
Full Blog Post

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Contact Brian Flahaven, director of legislative, foundation and recognition programs, at flahaven@case.org.

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