15 Oct 2014 Senate Vote on 2014 “America Gives More Act” May Affect Your Association
There has, perhaps, never been a greater need for philanthropy in this country than at this time. In response to that need, on July 17th, the United States House of Representatives passed the “America Gives More Act of 2014,” a game-changing legislative package that will have a major impact on philanthropy in America.
The act was passed with a bipartisan super-majority vote of 277-130. The goal is to make it easier for people to support the causes they care deeply about.
• “The goodwill of the American people is unmatched, and we should do everything we can to encourage Americans to give more, enabling charities, nonprofits, foundations and schools across the country to expand their reach and serve those most in need,” – David Camp, Chairman, House Ways & Means Committee, Republican, MI
• “All of us support the good work of the public charities.” – Congressman Sander Levin, Democrat, MI
• “This bill is a common sense bill that is the right thing to do for America.” – Congressman Tom Reed, Democrat, NY
5 Key Provisions in the 2014 America Gives More Act
There are five key provisions in the bill that affect donors:
• Increase in Limit on Food Donations – Congress has raised the deductible limit of food donations from 10% to 15%, and guarantees fair market value regardless of demand.
• Reduction in Excise Tax – Scheduled to take effect in 2015, this piece of the legislation lowers the excise tax on the investments of large private foundations from 2% to 1%.
• No Penalties for Seniors Who Give – Seniors aged 70.5 and up can now make gifts from their IRAs without incurring withdrawal penalties.
• Conservation – a deduction may to be taken for a conservation land easement
• Change in Tax Filing Deadlines – Gifts made prior to April 15th may now be deducted as part of the prior year’s taxes.
This last measure is particularly important. “This bill (will help) spur charitable giving by allowing the donors to have a complete knowledge of their financial standing for the tax year, specifically for small business owners and entrepreneurs,” — Sandra Swirski, Executive Director, Alliance for Charitable Reform
You can read a summary of the bill here: https://beta.congress.gov/bill/113th-congress/house-bill/4719?q=%7B%22search%22%3A%5B%22hr4719%22%5D%7D
The full text is available here: https://beta.congress.gov/bill/113th-congress/house-bill/4719/text?q=%7B%22search%22%3A%5B%22hr4719%22%5D%7D
Philanthropic Organizations Weigh in on America Gives More Act
“This legislation is a big win for those who are served by the non-profit community, which in one form or another, is much of the country,” Joanne Florino, senior vice president for public policy for The Philanthropy Roundtable, said via a statement to the Non-Profit Times. Her sentiments were echoed by many colleagues in associations and non-profit organizations nationwide:
“The America Gives More Act of 2014 will encourage charitable giving and improve foundations’ ability to serve communities across the country. This bill strengthens our national culture of giving by making permanent several policies that have proven successful in increasing community investment.” –Vikki Spruill, President and CEO, Council of Foundations