Mr. Wolfe Goes to Washington...On March 15, 2006, Mike Wolfe, along with 7 other representatives of the Ohio Grantmakers Forum, went to Capitol Hill. 

At issue are several provisions that appeared in Senate Bill 2020 as part of the Tax Reconciliation Act of 2005.  While the House version (HB 4297) did not contain the same language as S. 2020, if added during a Conference Committee, these provisions would cause the most significant change to non-profit law since the Tax Reform Act of 1969.  With various amendments the provisions LCF was concerned about became part of the Pension Protection Act of 2006 - See the update below.

Community Foundations are particularly concerned about the definition of donor advised funds and the potential impact of prohibiting private foundations from making distributions to certain supporting organizations.  The Conference Committee will also be discussing language that could limit the ability of a non-profit that has donor advised funds, especially a community foundation, to attract the best possible candidates for positions on the Board of Directors or Governing Committees.

Mr. Wolfe's group from Ohio was honored to be invited by Representative Steve Chabot to the House Chamber.  Rather than meeting in his office, Congressman Chabot met with the group during a brief recess between a vote to extend Hurricane Katrina relief efforts and a presentation to a joint session of Congress by the President of Liberia.

                                                               Pictured from left to right:  Christine Cugliari - Schooler

                                                               Family Foundation, John Mullaney - The Nord Family

                                                               Foundation, Congressman Steve Chabot, Claudia Herrold

                                                               - Ohio Grantmakers Forum, and Michael Wolfe - Licking

                                                               County Foundation

While in Washington, the group heard presentations by Senator Mary Landrieu of Louisiana and Donald Powell, Federal Coordinator of Gulf Coast Rebuilding.  Foundations across the country have been and are playing a crucial role in efforts related to Hurricane Katrina.  Licking County Foundation has made several distributions from various funds to relief and rebuilding efforts.

                               Senator Mary Landrieu                                          Chairman Donald Powell

UPDATE - Pension Protection Act of 2006

In August, the Pension Protection Act of 2006 (PPA) was signed into law.  While many of the provisions that were of concern to community foundations like the Licking County Foundation were removed, there were still many parts of PPA that directly impact the Foundation and our donors.

On the positive side, donors can contribute up to $100,000 from an IRA to the Foundation without claiming the income for federal tax purposes.

On the down side, PPA contains many provision that directly impact donor advised funds and possibly scholarship funds - depending on how they are set up. 

Over the course of the coming months, LCF will be amending various processes and procedures to assure compliance with PPA.  We are also working closely with the Council on Foundations and the Ohio Grantmakers Forum to get definitions clarified.  In many cases, the IRS Commissioner will have to issue opinions and clarifications because of the impact to so many community foundations.

LCF will communicate with affected fund advisors as soon as we have clarification about the provisions in question.  In the meantime, if you have questions, please do not hesitate to call the Foundation (740) 349-3863.

 

January, 2007 UPDATE - Pension Protection Act of 2006

The IRS Commissioner has issued an opinion and clarification of PPA.  To date, all of the changes LCF has implemented comply with the new law.  As always, if you have questions, please do not hesitate to call the Foundation (740) 349-3863.