Lewis Charity Enhancement Act Passes House

Today, a bill sponsored by Rep. John Lewis, Chairman of the Ways & Means Subcommittee on Oversight and Investigations of the U.S. House of Representatives called the Charities Enhancement Act of 2008 (H.R. 7083) was passed by the House. Lewis introduced the bill earlier this year as a result of hearings he called and testimony he requested on the impact of the Pension Protection Act of 2006 on charities and foundations.

The committee’s work revealed some unintended consequences of the 2006 bill that the Charity Enhancement Act helps to rectify.

"Charities and foundations perform profound service to our nation," said Rep. Lewis. "They touch aspects of human need that the government is not able to reach. While we must not and cannot extend tax exemptions to organizations which use this benefit for personal gain, we also must not constrain the work of all the competent charities in this country because of a few who misuse the tax advantage. The Charity Enhancement Act is an attempt to relieve effective charitable institutions, especially those with a long history of outstanding service, from some of the unintended constrictions of current law. We need to free up these organizations, especially as we approach tough economic times, so they can continue to offer meaningful support to Americans who are left out and left behind."

The bill passed as a suspension on a voice vote and now heads to the Senate for review.

The Charity Enhancement Act is a bi-partisan bill supported by many organizations, including the Council on Foundations. The bill:

• promotes scholarships by revising rules so the granting of scholarships is not viewed as a taxable event;
• makes charitable institutions more transparent and public by facilitating the electronic filing of tax returns filed by charities and foundations;
• supports the philanthropy of Native American tribal governments;
• provides relief to longstanding foundations and charities established by estates; and
• supports volunteer boards by allowing charities to reimburse some of the reasonable and necessary expenses they incur in providing services to their organizations.

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CONTACT:
Brenda Jones
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