When the House Ways and Means Committee took its first votes under new Chairman Paul Ryan in February, a bill strongly favored by nonprofits topped the panel’s agenda. Now, as he settles into his new role as speaker of the House, members of the charity lobby hope the prospects for their priorities are brighter than ever.
The bill, the America Gives More Act, passed the full House but stalled in the Senate, and it remains a top priority of groups like Independent Sector, Alliance for Charitable Reform, the Council on Foundations, and others. It would make permanent certain tax deductions for donations of food to food banks, land set aside for conservation, and gifts to charities made directly from individual retirement accounts.
Each of those tax items, part of a hodgepodge of incentives known as extenders, have been renewed annually in recent years but are currently expired. The bill would also simplify and reduce the excise tax that private foundations pay on their investment gains.
Mr. Ryan’s support of those provisions and of maintaining the charitable tax deduction has given charity policy advocates hope.
Speaker Ryan “understands the connection between tax policy and charitable giving,” said Geoffrey Plague, vice president for public policy at Independent Sector. “He’s been helpful.”
Mr. Plague and other charity policy experts predicted that the issues dear to them would continue to be warmly received under his leadership. But it remains tough for members of Congress to agree to much. During next year’s presidential race, the partisan divide is likely to deepen.
“It remains a very difficult environment, and these tax issues lie at the very heart of some of the differences between the parties in Washington,” said Mr. Plague.
‘Unprecedented Access’
Like Mr. Plague, Steve Taylor, senior vice president for public policy at the United Way, is reviewing Mr. Ryan’s tenure as chairman of the Ways and Means Committee for clues as to how he’ll serve as speaker.
Over the past year, Mr. Ryan has visited with three United Ways in his home state of Wisconsin. “It was very easy for charities to get meetings with him at Ways and Means, and I expect he’ll do the same as speaker. It gives the charitable sector unprecedented access.”
William Daroff, director of the Jewish Federations of North America’s Washington office, noted the influence of Jack Kemp, the late Republican congressman, on Speaker Ryan’s career. Mr. Kemp referred to himself as a “bleeding-heart conservative” — a budget hawk who also stressed the importance of the addressing poverty. If Mr. Ryan maintains his mentor’s outlook in the speaker’s office, “it will be helpful to the nonprofit sector,” Mr. Daroff said.
Under former Speaker John Boehner’s tenure, tax issues took a back seat to other legislative concerns, according to Sandra Swirski, executive director of the Alliance for Charitable Reform. She expects that to change under the new leadership.
Ways and Means Leadership
Nonprofits are closely watching developments at the new Ways and Means Committee as well The leading candidates for the new chairman are Representatives. Kevin Brady of Texas and Pat Tiberi of Ohio, a co-chairman of the House Philanthropy Caucus.
The House Republican Steering Committee is expected to select the new chairman Wednesday.
Despite Mr. Tiberi’s leadership of the caucus, some nonprofit policy experts view both men favorably.
“I don’t think there’s any daylight between the two on any of our issues,” Ms. Swirski said.
“We’ve got a good starting block with both of them,” agreed Sue Santa, senior vice president for public policy at the Council on Foundations.
Both Ms. Swirski and Ms. Santa doubt that Congress will contemplate a major tax overhaul until after the 2016 presidential election. But they hope most of the America Gives More provisions will be passed on at least a temporary basis, in the form of a tax package that will extend several dozen of the expired extenders.
Beyond that, other items still have a shot. Congress could pass the provision lowering the foundation excise tax, Ms. Santa said, along with a separate item that would provide an incentive for people to give directly from their individual retirement accounts to a donor-advised fund.
“Our conversations show there could be a path forward,” she said.
