IRF Update - Mar. 31, 2011

Heise, Stropp to Receive 2011 CASE Commonfund Institutionally Related Foundation Awards

Two foundation professionals who have made valuable contributions to the public college and university foundation field are this year's recipients of the CASE Commonfund Institutionally Related Foundation awards. The 2011 recipients are:

• Lisa Heise, controller, Great Basin College Foundation (Nevada)
• John R. Stropp, former president, University of New Mexico Foundation

The CASE Commonfund awards recognize individuals who have made extraordinary contributions to the advancement, quality and effectiveness of their foundations and the community of institutionally related foundations as a whole. CASE and Commonfund will recognize Heise and Stropp during an awards luncheon April 13 at the 19th Annual CASE Conference for Institutionally Related Foundations in Phoenix, Arizona.

The awards are underwritten by Commonfund, a nonprofit corporation that provides fund management services and investment advice to educational institutions, hospitals, foundations and other nonprofits.

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

You still have time to join more than 140 foundation leaders from across the country at Managing Expectations, the 19th Annual CASE Conference for Institutionally Related Foundations, April 12-15 in Phoenix, Arizona.

The conference is designed for executives at foundations affiliated with four-year public colleges and universities and community colleges. Attendees will:

• Hear from a great lineup of speakers, including Robert Glidden, president emeritus of Ohio University; Stacy Palmer, editor of the Chronicle of Philanthropy;and Gerald Swanson, professor of economics at the University of Arizona
• Learn about the latest trends and best practices during elective sessions on a variety of topics, including managing campaigns, fundraising metrics, funding your foundation, spending policy, lobbying and strategic planning
• Participate in sessions designed specifically for community college foundations on alumni relations, internal controls, communications and governance
• Enjoy multiple opportunities to network and share strategy with foundation peers

Registration, travel, hotel and program information are available on the CASE website.

Please note that the conference hotel, the Sheraton Wild Horse Pass, is sold out for the dates of the conference. However, rooms are available at an alternate hotel, the Wild Horse Pass Hotel & Casino, located a short distance from the conference property and accessible via complimentary hotel shuttle.

Earn Up to 12.0 CPE Credits at the 2011 CASE IRF Conference

CPAs attending the 19th Annual CASE Conference for Institutionally Related Foundations, April 12-15 in Phoenix, Ariz., can earn up to 12.0 continuing professional education (CPE) credits at the conference by attending CPE credit sessions. The course level for the CPE sessions is Group-Live and no prerequisites or advance preparation are required. Only individuals registered for the conference can attend CPE sessions and earn CPE credit.

A list of CPE sessions with full descriptions and presenter names is available on the conference website. For each CPE credit session, conference attendees must sign-in and remain for the entirety of the session to earn credit. For more information regarding CPE sessions, please contact Brian Flahaven, CASE's director of government relations and institutionally related foundations, at flahaven@case.org or 202-478-5617. See the CASE website for refund and program cancellation policies.

CASE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417. Web site: www.nasba.org.

Senators Introduce IRA Charitable Rollover Bill

U.S. Senators Charles Schumer (D-NY) and Olympia Snowe (R-ME) have introduced the Public Good IRA Rollover Act of 2011 (S. 557), a bill that would permanently extend and expand the IRA charitable rollover.

Currently, taxpayers age 70½ or older can 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. However, without congressional action, the IRA charitable rollover will expire on Dec. 31, 2011.

If enacted, S. 557 would permanently extend the IRA charitable rollover. Additionally, the legislation would remove the $100,000 limitation on donations per year and provide donors with a planned giving option beginning at age 59 ½. Eight other senators have signed on as co-sponsors of the legislation.

Given federal budgetary concerns, Congress is not likely to pass a permanent extension of the charitable rollover this year. However, CASE will continue to push for the extension and expansion of this important charitable giving incentive.

S&P Gives U.S. Colleges, Universities a "Mixed" Report

The outlook remains mixed for U.S. colleges and universities in fiscal 2011 despite a gradual recovery in the sector. That's according to a recently released report by Standard & Poor's Ratings Service.

 In the report, Standard & Poor's analysts write that operating results will likely be uneven despite the economy's recovery and that institutions with high debt and limited liquidity "could experience severe stress." However, the analysts also write that they believe the long-term credit profile of many institutions is "stable and that many will perform favorably during the next year."

Other key analysis from the report:

• Public universities are not expected to underperform private universities despite likely cuts in state funding; however, some public colleges and universities may consider consolidation or consider mergers with their peers.
• Most institutions cut expenses, decreased and restructured debt and shored up liquidity to achieve a more stable credit profile.
• Key challenges include increasing competition, state funding cuts, higher expenses and liabilities and continued tuition and scholarship pressures.

And while the analysts agree that colleges and universities responded "fairly quickly" to the recession, they write that it is uncertain whether institutions will "continue to think about developing new business models that are not as dependent on gifts and investment income" as the economy continues to improve.

Headlines

Tax Break for Charitable Giving Targeted
The Hill, March 27, 2011
The federal budget situation has nonprofit organizations worried that efforts to limit the value of the charitable deduction may get some traction on Capitol Hill this year. President Barack Obama has once again proposed limiting the value of itemized deductions, including the charitable deduction, to 28 percent for high-income taxpayers. A coalition of nonprofit groups has written a letter to President Obama asking him to reconsider his proposal. CASE is a member of the coalition.
Full Article 

State Universities Face Deepening Cuts
MSNBC, March 22, 2011
Facing budget shortfalls, governors and state legislatures continue to cut funding to public higher education. Cuts may be particularly drastic in states where new governors campaigned on promises not to raise taxes. Some states and institutions are considering closing programs, reducing student enrollment and even laying off tenured faculty.
Full Article

Pell Grants Face Cuts, Possible Overhaul

Chronicle of Higher Education, March 20, 2011
As the cost of Pell Grants continues to increase, lawmakers are considering changes to the popular program to put it on a sustainable path. However, Republicans and Democrats disagree on how to overhaul the program, which provides need-based aid to undergraduates. House Republicans have proposed cutting $5.7 billion from the program, reducing the maximum award by 15 percent. Democrats, including President Barack Obama, have proposed preserving the maximum award while eliminating year-round grants and eligibility for graduate students. Democrats have also pushed limiting the amount of Pell money that goes to for-profit colleges, the sector responsible for the disproportionate growth in the cost of the program.
Full Article (subscription required)

Court: ESU Must Release Donor Records, Meeting Minutes
Pocono Record, March 18, 2011
The Pennsylvania Supreme Court has upheld a lower court ruling that the East Stroudsburg University Foundation must make available donor records and meeting minutes under the state's open records law. The university and foundation had argued that the open records law only applies to duties that public agencies are required to perform. The courts disagreed, ruling that any contract between a public agency and a private entity in the state is subject to disclosure.
Full Article 

Public Universities Seek More Autonomy As Financing from State Shrinks
New York Times, March 2, 2011
As state funding continues to decline, many state colleges and universities are seeking greater autonomy from state oversight and regulations. Some education experts worry that giving state colleges and universities more autonomy could lead to reduced accessibility and affordability for in-state residents. The move for greater autonomy is also creating tension between flagship institutions and state systems.
Full Article

How can I receive the CASE IRF Update in my inbox?

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