IRF Update - January 31, 2012

CASE Launches IRF Data Book

CASE has announced the creation of the IRF Data Book, a tool that will allow institutionally related foundation executives and professionals to compare data related to their foundation's structure, funding, staffing and operations with that of their peers.

Foundations registered for the IRF Data Book will be able to:

• Compare their foundation's funding and operations with their peers,
• Pull comparison data at any time for foundation staff or board meetings,
• Choose specific foundations to benchmark against and
• Learn about the latest trends in IRF management and operations.

Here is how your foundation can join the CASE IRF Data Book.

1) Register. Foundations interested in accessing the IRF Data Book must register to use the CASE Benchmarking Toolkit. You can register today by completing two easy steps:

• Select an individual to complete data surveys. Given the financial nature of most surveys, your foundation may want to choose a financial staffer for this role. This person will also be your foundation's designee for accessing data in the Data Book.
• Email the full contact information for this individual to research@case.org and reference the "IRF Data Book."

The CASE research department will send login information to the registered individual, who will then be able to log in to the CASE Benchmarking Toolkit. While there is no registration fee, only CASE members are eligible to participate in IRF Data Book surveys.

2) Complete the FY11 IRF Data Book Survey. This survey will be open between Feb. 6 and March 9, 2012. Registered foundations must complete this survey to get access to benchmarking data. CASE will share survey results and overall trends and provide training on how to use the benchmarking features of the toolkit at the upcoming 20th Annual Conference for Institutionally Related Foundations, April 18–20, 2012, in Chicago.

You can read more and prepare for the FY11 IRF Data Book Survey on the CASE website. If you have any questions, please contact Brian Flahaven (flahaven@case.org or 202-478-5617) or Heather Harmon (hharmon@case.org or 202-478-5622).

Register Today and Save on the 2012 CASE IRF Conference

Registration is now open for the 20th Annual CASE Conference for Institutionally Related Foundations, April 18–20, 2012, in Chicago. CASE members are eligible for a special early bird registration rate, which ends Feb. 24.

The theme for this landmark conference is "The Basics, The Best, The Next" as CASE and our foundation members reflect on two decades of helping to strengthen the IRF field and look ahead to what foundations and foundation leaders can expect in the future. The conference is designed primarily for executives at foundations affiliated with four-year institutions and community colleges.

CASE will offer CPE credit for selected sessions, and the conference will again include special programs and sessions for community college foundation staff.

To register and view the agenda, visit the CASE website. Additional session information will be posted in the next few weeks.

IRS Suspends Form 990 E-Filing

The Internal Revenue Service has suspended its electronic filing system for the Form 990 until Feb. 29, 2012.

Since the system will be down, the IRS has granted a filing extension to March 30, 2012, for any organization that has a filing due date in January or February. Organizations that wish to extend their filing deadline to March 30 can do so by completing Form 8868 (pdf).

Additional information is available on the IRS website.

IRA Charitable Rollover Expires

Congress did not act to extend the IRA Charitable Rollover prior to its expiration on Dec. 31, 2011. Many lawmakers hope to pass a retroactive extension of the IRA charitable rollover in 2012.

Prior to its expiration, taxpayers age 70 ½ or older could make tax-free charitable gifts of up to $100,000 per year directly from their Individual Retirement Accounts to eligible charities, including colleges, universities and independent schools. Last December, Congress passed a two-year, retroactive IRA charitable rollover extension through Dec. 31, 2011, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

In 2011, U.S Sens. Charles Schumer (D-N.Y.) and Olympia Snowe (R-Maine) and U.S. Reps. Wally Herger (R-Calif.) and Earl Blumenauer (D-Ore.) introduced the Public Good IRA Rollover Act of 2011 (S. 557, H.R. 2502), legislation that permanently extends and expands the IRA charitable rollover. While passage of the Public Good IRA Rollover Act is unlikely, lawmakers hope that a short-term retroactive extension of the expired IRA charitable rollover will happen sometime in 2012.

CASE will continue to urge Congress to pass a retroactive extension of the IRA charitable rollover.

Headlines

USC Pursues Aggressive Fundraising Effort Despite Hard Times
Los Angeles Times, Dec. 29, 2011
The University of Southern California has announced the most ambitious fundraising goal ever in U.S. academia: $6 billion by 2018. As it prepares for the drive, USC plans to double its fundraising staff by next year. The university announced its target goal at a time when it had only about $1 billion, or 17 percent of the total, in cash and pledges. Experts said that universities typically quietly raise funds for several years and don't go public until 40 percent or 50 percent of the total is assured.
Full Article

Fundraising Becomes Key for Michigan University Presidents
Detroit Free Press, Jan. 1, 2012
Many of Michigan's public college and university presidents are spending more time fundraising as state funding continues to decline. University of Michigan President Mary Sue Coleman's schedule is increasingly tied to fundraising; she even declined an invitation to the White House due to her busy schedule. Other Michigan university presidents are also spending more time fundraising. The presidents of Oakland, Michigan State and Wayne State universities made dozens of fundraising trips across the nation last year.
Full Article

La. Congressman Seeks Nonprofit Accountability
The Chronicle of Philanthropy, Jan. 15, 2012
Rep. Charles Boustany (R-La.), chair of the House Ways and Means subcommittee, is paying careful attention to oversight of the nonprofit sector. The Chronicle reports that Boustany says he believes the IRS is not doing enough to curb abuses by charities, including excessive executive compensation, inappropriate commercial activities and improper involvement in political campaigns. He plans to continue to examine the tax code and hold hearings to find ways to improve enforcement of nonprofit laws. But even as he looks to simplify tax laws, Boustany says he wants to protect the deduction taxpayers receive for making charitable donations.
Full Article (Subscription required)

Big Target, Bigger Cuts
Inside Higher Ed, Jan. 18, 2012
Per-student state funding for public research universities dropped about 20 percent between 2002 and 2010, according to a report released by the National Science Board. It is believed that research universities were hit harder than other sectors of higher education because state policy makers believe they can handle cuts better. There is concern by the report's authors that the decrease in public funding for U.S. institutions, coupled with an increase in public support for institutions in China and India, could contribute to the United States losing its competitive edge in the science and engineering fields.
Full Article

What to Do About IRA Charitable Donations
The Wall Street Journal, Jan 21, 2012
Sixty federal tax provisions, including the IRA charitable rollover, expired in 2011. According to The Wall Street Journal, the IRA charitable rollover allows IRA owners 70½ and older to contribute annually up to $100,000 of IRA assets directly to a tax-free charity. Such donations aren't tax deductible, but neither do they count as income. In 2010, the law also expired, and Congress didn't reenact it until mid-December of that year. Donors who know they want to make a donation should go ahead and transfer IRA assets directly to the charity, while donors who want to make a gift only if they can do it with IRA assets should be careful to "leave room" for the donation when taking payouts.
Full Article

Outlook for Higher Education Remains Mixed, Moody's Says
The Chronicle of Higher Education, Jan. 23, 2012
Moody's Investors Service outlook report has a mixed forecast for higher education. The market is looking stable for leading colleges that are well managed and diversified, but for the rest, the market is much less stable. Colleges dependent on tuition or state money will continue to face challenges in the next 12 to 18 months. The Moody's report also addresses whether the higher-education model is fundamentally broken. Moody's analysts maintain that the business model is "generally sound and long-lasting" but that higher education needs to innovate to remain viable.
Full Article

State Support Slumps Again
Inside Higher Ed, Jan. 23, 2012
The annual Grapevine study of state spending on higher education finds that state appropriations for colleges and students sank by 7.6 percent in 2011–12, the largest such decline in at least a half century. Twenty-nine states allocated less money to higher education in 2011–12 than they did in 2006–7, and nearly half (14) provided at least 10 percent less than they did five years ago.
Full Article

President Vows Not to Deter Wealthy From Giving
The Chronicle of Philanthropy, Jan. 25, 2012
During his State of the Union address, President Obama said those making more than $1 million should be required to pay at least 30 percent of their income in taxes, and he also proposed eliminating their tax deductions. A White House official said the eliminated tax deductions would not include the charitable deduction. In a document accompanying the speech, the president clarified that his administration would work not to disadvantage individuals who make large charitable contributions.
Full Article

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