Letter

WE SUPPORT AN EMERGENCY CHARITY STIMULUS BILL TO MANDATE INCREASED PAYOUTS FOR PRIVATE FOUNDATIONS AND DONOR-ADVISED FUNDS

 

Dear Speaker Pelosi, Chairman Neal, Ranking Member Brady, Minority Leader Schumer, Chairman Grassley, and Ranking Member Wyden, 

We are writing as philanthropic donors and leaders to urge you to consider including “emergency charitable stimulus” legislation in the next coronavirus relief package by doubling the mandated annual foundation payout over the next three years, from five percent to ten percent, and to mandate the same ten percent payout requirement for Donor Advised Funds (DAFs). This simple change will allow Congress to inject more than $200 billion into the economy over the next three years, according to estimates by the Institute for Policy Studies – all without spending a dollar of taxpayer money.  

As you know, private foundations are currently mandated by federal law to spend five percent of their assets each year in grants and overhead, and DAFs are not required to spend a dime. While some foundations pay out more, the vast majority of American foundations treat the five percent floor as a ceiling on their giving, in part to ensure that the institutions will live in perpetuity. Wealthy donors take an immediate, taxpayer-subsidized deduction when giving money to these entities, regardless of when the money is distributed. And in this time of unprecedented crisis, the money is not reaching charities fast enough. 

The independent nonprofit sector employs over 12 million people, ten percent of the private sector workforce. Increased funding could be immediately absorbed by food banks, health care providers, educational institutions, and organizations addressing issues like poverty alleviation, economic development, safe and secure voting, and social justice. Otherwise, foundations which are losing assets on Wall Street will cut their grant-making correspondingly – as they did in the years after the 2009 recession – forcing many nonprofit organizations they fund to reduce budgets, lay off staff, and cut back on their charitable work. This will cause additional problems for an economy which is already in trouble.

In the midst of global pandemic and economic shutdown, there is no justification for allowing the country’s wealthiest dynasties to continue to hoard tax-advantaged funds that have already been designated as charitable contributions in anticipation of some future need, when there are so many urgent needs now. While this change is a deviation from the status quo, it is a modest one. Congress’s purpose in incentivizing these foundations and funds with tax deductions in the first place was to support charitable efforts. There has clearly not been a moment in the past fifty years in which the full deployment of our charitable sector was more necessary. 

America is in an unprecedented crisis. The world of philanthropy must step up and do more, faster. Congress must insist on it.

Thank you for your consideration.

SIGN OUR LETTER:

It’s TIME TO GET CHARITABLE WEALTH OFF THE SIDELINES!

Please sign below if you are a donor, foundation leader or have a donor advised fund.
If not, please sign on HERE.

 

Emergency Charity Stimulus

**your signature**



Affiliation For Identification Purposes Only

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The Signers

(Organizations Listed for Identification Purposes Only)

SCOTT WALLACE
Wallace Global Fund (PA)

CATHERINE GUND
George Gund Foundation (NY)

ANNA FINK
Amalgamated Charitable Foundation (NY)

RORY KENNEDY
(CA)

REGAN PRITZKER
(CA)

DANA KAWAOKA-CHEN
Justice Funders (CA)

CONRAD MARTIN
Stewart R. Mott Foundation (DC)

JULIE SCHECHTER
Shift Fund (MA)

ELLEN FRIEDMAN
Compton Foundation (CA)

JUSTIN MAXSON
Mary Reynolds Babcock Foundation (NC)

MICHAEL PINE
Chicago Community Trust (IL)

TRACY HEWAT
Hewat Fund (RI)

DEB NELSON
RSF Social Finance (CA)

KATHRYN GILJ
Ceres Trust (IL)

SE-AH-DOM EDMO
MRG Foundation (OR)

GUN DENHART
(OR)

MIKE LAPHAM
DBL Foundation (MA)

CHUNG-WHA HONG
Grassroots International (MA)

ERIC SCHOENBERG
(NJ)

TERRY WINOGRAD
(CA)

SOPHIE ROBINSON
(NH)

MARNIE THOMPSON
(NC)

ELLEN DORSEY
Wallace Global Fund (DC)

FRANK PATITUCCI
(CA)

BENNO FRIEDMAN
Cloud Mt. Foundation (MA)

ZEPH FISHLYN
(OR)

ASHLEIGH GARDERE
Mary Reynolds Babcock Foundation (LA)

LAUREN CAMPBELL
(DC)

ELISE SALTZBERG
(MD)

MARSHA DAVIS
Tzedek Social Justice Fund (NC)

MOLLY STRANAHAN
(AZ)

RON MILLER
New Visions Foundation (VT)

ABIGAIL DISNEY
(NY)

MARY MOUNTCASTLE
Mary Reynolds Babcock Foundation (NC)

KEITH MESTRICH
Amalgamated Charitable Foundation (NY)

KAITLIN GRAVITT
Resource Generation (NY)

JENNIFER RISCHER
(CA)

BARBARA MEYER
(GA)

SARA MILLER
Miranda Family Fund (NY)

LARRY OTTINGER
Ottinger Foundation (MD)

JERRY HIRSCH
Lodestar Foundation (AZ)

SURINA KHAN
Women’s Foundation of California (CA)

MORRIS PEARL
(NY)

LEO FARBMAN
Kolibri Foundation (WA)

BILL CLAPP
(WA)

CHRISTIAN ETTINGER
Education Foundation of America (CA)

NAN ORROCK
Sapelo Foundation (GA)

TRACY GARY
Kismet Fund (CA)

ELLEN FARBMAN
Kolibri Foundation (NY)

ALIDA LATHAM
(WA)

HARLEY BROWN
(NY)

STEPHEN SEGAL
Segal Family Foundation (PA)

JONATHAN GOLDMAN
Spyder Fund (MA)

SONJA SWIFT
Swift Foundation (CA)

LOREN HARRIS
(CA)

DANIEL LEWIS
(CA)

CAROLYN VAN NELSON
(MN)

ROBIN BRADFORD
(TX)

KATHERINE ANDERSON
(NJ)

CAITLIN BRUNE
(CA)

SCOTT ELLIS
Ellis Family Fund (CA)

SANDY POLISHUK
(OR)

JODY WISER
Perpetua Fund (OR)

 

NING MOSBERGER-TANG
(CO)

ALAN DAVIS
Leonard and Sophie Davis Fund (CA)

SUSAN PRITZKER
(CA)

JODIE EVANS
ETINA (CA)

AILEEN GETTY
Aileen Getty Foundation (CA)

FARHARD EBRAHIMI
Chorus Foundation (NY)

JOHN ESTERLE
Whitman Institute (CA)

JASON FRANKLIN
Ktisis Fund (MI)

DRUMMOND PIKE
Tides Foundation (CA)

Dr. LM Alaiyo Foster
Black United Fund (OR)

VINI BHANSALI
Solidaire Network (CA)

STEPHEN PRINCE
(TN)

PETER STERN
(CA)

JAMES DUPONT
(CA)

VIRGIL SMITH
Z Smith Reynolds Foundation (GA)

SPENCER SHERMAN
Impact Assets (CA)

VU LE
(WA)

STEVEN FARBMAN
(NY)

MICHAEL GAST
(WA)

NAOMI SOBEL
(MA)

ELAINE LISSNER
Parsemus Foundation (CA)

MATTHEW WILHELM
(NH)

ELSPETH GILMORE
(NY)

CATHERINE LERZA
(CA)

ALAN PRESTON
Arch Community Fund (WA)

JACINTA FITZGERALD
(WA)

JILL BUNGE
United Way Toledo (OH)

JORDAN GOLDWARG
(WA)

JENNIFER FITZGERALD
Mary Reynolds Babcock Foundation (MA)

MARCIA PETERS
Rubblestone Foundation (MA)

Brinton Lykes
(MA)

WENDY VOLKMAN
(NM)