IRF Update - Nov 12, 2010

New White Paper Examines Structure, Staffing at Community College Foundations

The survey asked community college foundation leaders to provide information in a number of areas, including foundation board and governance, major gifts, alumni relations and endowment. Among the key survey findings:

• While community college foundation board members are often expected to make annual charitable contributions to their foundations, not all foundations require board members to do so. Nearly half (47.2 percent) of respondents require their community college foundation board members to make an annual contribution.
• A significant percentage of community colleges do not invest in alumni relations. While more than half of respondents (54.6 percent) indicated that their community college or community college district dedicates resources for alumni relations activities, just under half of respondents (45.4 percent) said that their colleges or districts do not dedicate resources for alumni.
• Most respondents (63.8 percent) said that their foundation's chief staff officer (ex. executive director) reports to the col¬lege president, while smaller percentages of respondents indicated that their foun¬dation's chief staff officer reports directly to the foundation board of directors (16.2 percent) or a college staff member (12.3 percent).

The white paper is available to CASE Professional Members on the CASE website.

CASE thanks the community college foundations that completed the survey. And congratulations to the four winners of the drawing-they will receive a copy of Getting the Green or Growing Giving:

• Holyoke Community College Foundation
• Paris Junior College Foundation
• Highline County College Foundation
• Citrus College Foundation

Save the Date: 19th Annual CASE Conference for Institutionally Related Foundations

Mark your calendars for the 19th Annual CASE Conference for Institutionally Related Foundations, April 13-15, 2011, at the Sheraton Wild Horse Pass in Phoenix, Ariz. The IRF conference is the premier conference on management issues facing institutionally related foundations and is designed for chief executive officers, chief financial officers, chief operating officers and other executives at foundations affiliated with four-year institutions and community colleges. Conference highlights include:

• A keynote address from Dr. 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

You 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.

If you have any questions, please contact Brian Flahaven at flahaven@case.org or +1-202-478-5617. We hope to see you in Phoenix!

Fate of Estate Tax, IRA Charitable Rollover Unclear in Lame Duck Congress

In the aftermath of the Nov. 2 midterm elections, it is unclear if lawmakers will pass extensions or delay action on the estate tax and IRA charitable rollover when Congress returns for a "lame duck" session the week of Nov. 15.

Prior to the election, congressional Democrats had hoped to consider a large tax package during the lame duck session. The tax package would have likely included at least a short-term estate tax extension (one- or two-year extensions). However, having taken control of the U.S. House and gained seats in the Senate, congressional Republicans may decide to delay action on all tax legislation until the new Congress is seated in January.

Currently, the estate tax is temporarily repealed but, without congressional action, will reappear at its pre-2001 levels ($1 million exemption, 55 percent tax rate) on Jan. 1, 2011. While the House has passed a bill (H.R. 4154) that would permanently extend the estate tax at its 2009 levels ($3.5 million exemption, 45 percent tax rate), Senate Democratic leaders do not have the 60 votes necessary to pass H.R. 4154 in their chamber. It is also unclear if an alternative estate tax proposal that would be more generous to heirs, introduced by Sens. Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.), can get the necessary 60 votes in the Senate. The Lincoln-Kyl proposal would set the exemption level at $5 million while the remainder of the estate would be taxed at a 35 percent rate.

Action on an IRA charitable rollover extension has also stalled. Prior to its expiration on Dec. 31, 2009, the IRA charitable rollover allowed taxpayers age 70 ½ or older to direct up to $100,000 annually from their individual retirement accounts to eligible charities, including colleges, universities and independent schools, without having to count the distribution as income for tax purposes. Multiple attempts to pass legislation that includes a one-year retroactive IRA charitable rollover extension have failed in the Senate.

CASE will continue to urge lawmakers to permanently extend the estate tax and IRA charitable rollover as soon as possible.

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.