Council Connection: Updates for Council Members

Public policy news and updates for the philanthropic sector

Happening at the Council

Fearless Foundation Amicus Brief Info Session
At 2 p.m. ET this afternoon, we're hosting an info session to discuss what the Fearless Foundation court case could mean for philanthropy, and why we filed an amicus brief arguing that philanthropic organizations and individuals have the right to exercise their views through giving, as protected by the First Amendment. Join us to learn more about the case and its potential impact to the charitable sector.

Foundations on the Hill 2024: February 25-28
Recent Independent Sector research showed a decades-long decline in sector advocacy efforts. Join your colleagues and other sector advocates and help reverse this troubling trend by attending Foundations on the Hill 2024! Deepen your advocacy capacity and relationships with lawmakers and Capitol Hill staff at #FOTH2024, a conference featuring interactive sessions on vital public policy topics, meetings with federal officials, networking receptions, and more. Register for #FOTH24 today.

Building Together: Leading Collaboratively Across Differences
Building Together is a new immersive learning experience for philanthropic leaders who want to develop strategies and skills to bridge differences and counteract toxic polarization. Join us in Chicago from May 6-9 to be part of this experience. 

What to Expect in 2024

Congress
Congress still has work to finish from last year: funding the government. Congress recessed for the holidays after passing a temporary funding measure that funds certain departments and agencies through January 19 and the remainder through February 2. They now face the monumental task of funding the government in a short time frame or risking a government shutdown. Expect the battles to keep the government open to continue through at least the first part of 2024.

While appropriators sort out government funding, there are reports that Ways and Means Committee Chair Jason Smith (R-MO) and Senate Finance Committee Chair Ron Wyden (D-OR) have negotiated a tax package. Reporting suggests it will likely include the Child Tax Credit and several business tax incentives, but specifics have not yet been revealed. Given the current policymaking environment, the package is far from a done deal. This is an opportunity to lift up critical sector priorities, including the Charitable Act (S.566/H.R.3435). Take action: tell your members of Congress to support this important bill, which would create a temporary charitable deduction for taxpayers who do not itemize.

Finally, it's an election year: expect even more politics and messaging bills from Congress in 2024. Democrats in the Senate and Republicans in the House hold their respective majorities by slim margins. The entire House is up for re-election, while a third of the Senate will be on the ballot in November.  This year’s list of resignations and retirements is lengthy, meaning the 119th Congress—set to be sworn in next January—will feature dozens of new faces and likely alter existing dynamics.

Regulatory Environment
Treasury and the IRS released proposed regulations on donor advised funds last year. The comment period on these proposed regulations has been extended to February 15. We expect final regulations to come after a review period, though the timing is not certain. The Council plans to submit comments; email govt@cof.org to let us know how these changes would impact your organization.

Treasury and the IRS will also invite the public to submit recommendations for items to be included in their 2024-2025 Priority Guidance Plan this spring. This Plan is a set of tax-related issues that Treasury and the IRS intend to prioritize for guidance in the upcoming year. As our team starts preparing our comments, let us know: what federal tax issues would you like to see clarified?

We also expect final guidance on the federal grants process from the Office of Management and Budget. The Council submitted comments on the proposed revisions toward the end of last year; thank you to all who reached out to tell us the importance of these updates.

Finally, last fall, the Department of Justice announced plans to issue proposed clarifications to the Foreign Agents Registration Act. We expect the proposed rules this April.

Federal Agencies
As President Biden’s first term draws to a close, federal agencies will be working to implement remaining pieces of his agenda, including the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. These landmark packages, which include nearly $2 trillion in funding for clean energy, infrastructure improvements, and climate resiliency, represent a major priority for the Biden-Harris Administration. Nonprofits are eligible to receive some of this funding, and Notice of Funding Opportunities are posted to grants.gov regularly. We include some of these opportunities in Snapshot, but we encourage you to track relevant agencies as well.

Happening in the States

New State Laws in 2024
New laws affecting individuals and nonprofits went into effect across the country on New Year’s Day. Here is a sampling:

  • Child Care: New laws in Colorado, Massachusetts, and Utah expand or increase the value of state child tax credits for dependents.
  • Minimum Wage: Effective this month, 22 states and more than three dozen cities and counties increased the minimum wage rates for workers. Employees in California, New York, and Washington should now be earning at least $16 per hour.
  • Taxes: Most states made changes to their state tax laws last year, effective Jan. 1. Among those, nine states (Arkansas, Connecticut, Georgia, Iowa, Kentucky, Mississippi, North Carolina, Ohio, and South Carolina) implemented income tax cuts, some of which may result in reduced charitable giving in the respective states.

Hot State and Local Topics in 2024
By the end of the month, legislatures in 37 states will be in full swing with another six convening in February. Here is a brief forecast of the hot topics affecting nonprofits and the people they serve:

  • Grants Reforms: Last year, state lawmakers introduced more than 50 bills to reform their state’s government grants and contracts processes to ensure charitable organizations receive more timely, complete, and equitable reimbursements. This trend, with aggressive nonprofit advocacy, should continue.
  • Child care: State policymakers are expected to continue taking steps to address child care gaps for families.
  • Charitable Giving Incentives: In states with budget surpluses, nonprofits will be pushing for expanded incentives, while elsewhere nonprofits will be fighting to preserve incentives that encourage individuals to give back to their communities.
  • Taxes, Fees, PILOTs (payments in lieu of taxes): The cycle of local governments short on cash targeting tax-exempt organizations will likely continue.

Upcoming Events

Keep in Touch!

Please feel free to reach out to any of us on the Government Relations Team with comments or concerns, or to share an issue, article, event, or op-ed you would like to see covered in a future Washington Snapshot.

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