Print More

FYI: Foundations will no longer be able to count administrative costs as charitable payouts if a reform bill in the House is enacted into law. Philanthropic groups are currently required to give away at least five percent of their assets each year to maintain a tax-exempt status, but many foundations count operating expenses as part of that five percent. The Charitable Giving Act of 2003, now being considered by the House Ways and Means Committee, would require the five percent payout to consist wholly of charitable grants. The bill, sponsored by Missouri Republican Rep. Roy Blunt, has become an increasing point of contention, as both foundations see it as a threat to long-term stability, while some lobbying for the nonprofits they fund see it as sparking a significant boost in giving during hard times. A study by the National Committee for Responsive Philanthropy estimates that the change would increase grants to nonprofits by $3.2 billion annually. [7/9/03]

Leave a Reply

Your email address will not be published. Required fields are marked *