Energize Alabama-- e-bulletin - January 12, 2009
Aldridge Botanical Gardens in Hoover, Al will be the site of a five day, in-depth workshop conducted by Solar Energy International of Carbondale, CO (www.solarenergy.org). The workshop is certified by the Institute of Sustainable Power (ISP) and fulfills the educational requirements for Category ‘B’ of the North American Board of Certified Energy Practitioners (NABCEP) Solar PV Installer Certification. Cost is $500 and includes all workshop materials plus breakfast and lunch. For more information send an e-mail to Larry Quick at aldridgelq@bellsouth.net . Phone 205 682-8019.
Several of us have led weekend workshops on solar PV, but this promises to be most in depth yet and the first week-long workshop in Alabama. I (Daryl) have been the only person in Alabama with the NABCEP Solar PV Installer certification. As the barriers to solar PV here drop away, we will need a larger group of certified PV installers in Alabama. This workshop will provide participants with a foundation for solar installation and a first step toward NABCEP certification. If you or your organization can be a sponsor or you are interested in being a participant in this workshop, let Larry know this week.
Thursday, March 5, 2009
Tuesday, March 3, 2009
from: http://philanthropy.com/news/updates/index.php?id=7244
Obama's Plan to Reduce Charitable Deductions for the Wealthy Draws Criticism
By Suzanne Perry
Washington
New updates:
Several billion dollars could be lost in charitable gifts because of the tax proposal, say philanthropy scholars.
The White House says that the plan won’t hurt charities, in part because it doesn’t take effect until 2011, when Obama officials expect the economic recovery to have begun.
Original article:
Some charities and nonprofit experts are worried that President Obama’s proposal to impose new limits on charitable tax deductions for wealthy people would dampen giving at a time when charities are under severe strain because of the recession.
“During the current economic downturn, which has forced nonprofits to do more with less, any proposal which would result in a decrease in private giving will be a disaster for America’s charities, and for those who depend upon them,” said United Jewish Communities, an umbrella group for Jewish social-service charities.
Mr. Obama proposed the new caps on Thursday as a way to finance changes in the country’s health-care system.
In a document outlining his 2010 budget plans, President Obama proposed limiting the value of the tax break for itemized deductions, including donations to charity, to 28 percent for families making more than $250,000. In other words, taxpayers would save 28 cents on their federal income taxes for each dollar donated.
That would reduce by as much as 20 percent the amount wealthy taxpayers could get in tax breaks. Under the current system, taxpayers who are in the 33 percent or 35 percent tax brackets use that rate to claim deductions.
The president says the proposal on itemized deductions — which would also apply to claims such as mortgage interest — would raise $318-billion over 10 years. That money would help pay for a 10-year $630-billion reserve fund designed to help make health care more affordable and available.
Independent Sector, a coalition of charities and foundations, and the Council on Foundations were among the nonprofit groups that lined up to express concern that the proposal would prompt donors to pull back.
But others say the effect could be limited or should be viewed in the context of the broader goals the president is trying to achieve with his budget proposals. (Update: Indiana University scholars estimated on Friday afternoon that several billion dollars in giving by the affluent were probably at stake.)
‘Rebalance the Tax Code’
The proposal to limit the itemized-deduction rate is included in a package of measures designed to free up money for the reserve fund, including reducing Medicare overpayments, cutting drug prices, and improving post-hospitalization care as a way to reduce readmissions.
The plan is an effort to “rebalance the tax code so that the wealthiest pay more,” the document says.
“With this budget, we are making a historic commitment to comprehensive health-care reform,” President Obama told a news conference. “It’s a step that will not only make families healthier and companies more competitive, but over the long term it will also help us bring down our deficit.”
But the idea has drawn mixed reactions in the nonprofit world.
Rob Reich, an associate professor at Stanford University, urges critics to look at the big picture. “Is the good that will be done through health-care reform greater than the good that would have been done with the charitable projects of the wealthy people [who might decrease their gifts]?” he says.
He argues that the charitable deduction increases the inequalities between rich and poor because people with smaller incomes often don’t earn enough to itemize, and if they do they get less of a break because they are in a lower tax bracket.
But Sheldon Steinbach, a lawyer in Washington who represents colleges and universities, says the proposal could have drastic consequences for many groups.
“Any disincentive to charitable giving, especially in the current economic climate, will have an impact far beyond the black letter law,” Mr. Steinbach says. “It will have an exponentially negative impact.”
But while many charitable-giving experts expressed alarm about how reduced rate for charitable deductions would affect giving by wealthy Americans, others say that Mr. Obama’s proposal may be less cause for concern than it initially appeared.
The reason: Many wealthy Americans who would otherwise be in the 33- or 35-percent tax bracket — and thus able to take that same percentage deduction for their charitable gifts — have used mortgage payments and other deductions to qualify for the alternative minimum tax rate of 28 percent, says Robert F. Sharpe, a Memphis planned-giving consultant.
By paying the alternative minimum tax rate of 28 percent, those wealthy taxpayers are already restricted to the same percentage on their charitable deductions, Mr. Sharpe says. “A lot of the rich are already used to the 28-percent deduction,” which means the Obama proposal would not result in any change for them.
For those wealthy individuals who currently qualify for the 33- or 35-percent rate, however, President Obama’s proposal would have some financial impact.
To illustrate, Mr. Sharpe offers the example of a wealthy donor in the top tax bracket who makes a $100,000 gift. The donor currently would save $35,000 in taxes, or 35 percent of the gift. Under President Obama’s proposal, that same donor would save only $28,000, or 28 percent — a difference of $7,000. (Editor’s note: this sentence originally referred incorrectly to the $35,000 and $28,000 as the amount that could be deducted, instead of the amount saved in taxes.)
Mr. Sharpe says the proposal would unfairly penalize the most generous taxpayers since wealthy people who give nothing to charity would not face such a tax increase.
Impact on Large Institutions
Bruce Flessner, a fund-raising consultant at Bentz Whaley Flessner, in Minneapolis, says the plan would probably have little impact on organizations that have a broad pool of donors. But large institutions — particularly colleges and universities and academic medical centers — could be particularly hard hit if the plan moves forward.
“It seems like unusual public policy to try, as the president announced to the Congress this week, to return the United States to world leadership in access to higher education and then make it more difficult for extraordinary donors to contribute great gifts to colleges and universities,” Mr. Flessner says.
“Likewise, it seems like unusual public policy to penalize the great medical centers that contribute so much to scientific breakthroughs by making it more difficult for donors to make the six-, seven-, eight-, and nine-figure gifts,” he adds.
Eric Kessler, who advises major donors and foundations for Arabella Philanthropic Investment Advisors, says the proposed limits would not likely immediately affect the behavior of the biggest donors, who tend to plot their giving strategically. “I think it has an effect over time, but I don’t think anybody’s going to pick up the paper tomorrow and say, let’s forgo our commitment to the local theater group.”
But he says its could affect mid-range donors — say those who give in the $1,000 range — “who are less driven by strategy and for whom the deduction plays a significant role in their giving.”
Michael W. Peregrine, a lawyer in Chicago who advises nonprofit groups, says charities are now facing a “triple play” that could cut into their donations — the bad economy, the proposed charitable-deduction limits, and proposals by President Obama to end tax cuts for wealthy people that were introduced by President Bush.
He says he worries that charities that are hurting for donations will become more vulnerable to fund-raising scams. “What is certain is that the perception that this will reduce charitable donations in the short term is going to draw out the fraudsters,” he says.
Republicans who oppose President Obama’s budget proposal have also taken aim at the charitable-deduction measure. “During this difficult time, charities provide vital support mechanisms for families in need of help, and this budget is a direct assault on the financial resources they require,” Eric Cantor of Virginia, the House Republican whip, said in a statement.
But the proposals will not necessarily change giving patterns, says Giving Institute, an association of consultants in Glenview, Ill., and its research arm, Giving USA Foundation.
They noted in a statement that 53 percent of high-net-worth donors surveyed in a 2006 study for Bank of America said their giving would stay the same, or even increase, if the tax deduction for charitable gifts fell to zero.
Giving Institute members have found that “the most important factor in how much people give is how committed they are to the purpose of the request,” the statement said. Furthermore, giving will increase when wealth is created and “if the president’s plan generates more wealth for Americans then giving will go up.”
Holly Hall contributed to this article.
***
What would this move mean to the nonprofit world? Click on the comments link below this post to share your thoughts.
Additional features:
Reactions and comments on our Government and Politics Watch blog.
Discuss how this plan would affect fund raising on our Forums page.
Thursday February 26, 2009 Permalink
Obama's Plan to Reduce Charitable Deductions for the Wealthy Draws Criticism
By Suzanne Perry
Washington
New updates:
Several billion dollars could be lost in charitable gifts because of the tax proposal, say philanthropy scholars.
The White House says that the plan won’t hurt charities, in part because it doesn’t take effect until 2011, when Obama officials expect the economic recovery to have begun.
Original article:
Some charities and nonprofit experts are worried that President Obama’s proposal to impose new limits on charitable tax deductions for wealthy people would dampen giving at a time when charities are under severe strain because of the recession.
“During the current economic downturn, which has forced nonprofits to do more with less, any proposal which would result in a decrease in private giving will be a disaster for America’s charities, and for those who depend upon them,” said United Jewish Communities, an umbrella group for Jewish social-service charities.
Mr. Obama proposed the new caps on Thursday as a way to finance changes in the country’s health-care system.
In a document outlining his 2010 budget plans, President Obama proposed limiting the value of the tax break for itemized deductions, including donations to charity, to 28 percent for families making more than $250,000. In other words, taxpayers would save 28 cents on their federal income taxes for each dollar donated.
That would reduce by as much as 20 percent the amount wealthy taxpayers could get in tax breaks. Under the current system, taxpayers who are in the 33 percent or 35 percent tax brackets use that rate to claim deductions.
The president says the proposal on itemized deductions — which would also apply to claims such as mortgage interest — would raise $318-billion over 10 years. That money would help pay for a 10-year $630-billion reserve fund designed to help make health care more affordable and available.
Independent Sector, a coalition of charities and foundations, and the Council on Foundations were among the nonprofit groups that lined up to express concern that the proposal would prompt donors to pull back.
But others say the effect could be limited or should be viewed in the context of the broader goals the president is trying to achieve with his budget proposals. (Update: Indiana University scholars estimated on Friday afternoon that several billion dollars in giving by the affluent were probably at stake.)
‘Rebalance the Tax Code’
The proposal to limit the itemized-deduction rate is included in a package of measures designed to free up money for the reserve fund, including reducing Medicare overpayments, cutting drug prices, and improving post-hospitalization care as a way to reduce readmissions.
The plan is an effort to “rebalance the tax code so that the wealthiest pay more,” the document says.
“With this budget, we are making a historic commitment to comprehensive health-care reform,” President Obama told a news conference. “It’s a step that will not only make families healthier and companies more competitive, but over the long term it will also help us bring down our deficit.”
But the idea has drawn mixed reactions in the nonprofit world.
Rob Reich, an associate professor at Stanford University, urges critics to look at the big picture. “Is the good that will be done through health-care reform greater than the good that would have been done with the charitable projects of the wealthy people [who might decrease their gifts]?” he says.
He argues that the charitable deduction increases the inequalities between rich and poor because people with smaller incomes often don’t earn enough to itemize, and if they do they get less of a break because they are in a lower tax bracket.
But Sheldon Steinbach, a lawyer in Washington who represents colleges and universities, says the proposal could have drastic consequences for many groups.
“Any disincentive to charitable giving, especially in the current economic climate, will have an impact far beyond the black letter law,” Mr. Steinbach says. “It will have an exponentially negative impact.”
But while many charitable-giving experts expressed alarm about how reduced rate for charitable deductions would affect giving by wealthy Americans, others say that Mr. Obama’s proposal may be less cause for concern than it initially appeared.
The reason: Many wealthy Americans who would otherwise be in the 33- or 35-percent tax bracket — and thus able to take that same percentage deduction for their charitable gifts — have used mortgage payments and other deductions to qualify for the alternative minimum tax rate of 28 percent, says Robert F. Sharpe, a Memphis planned-giving consultant.
By paying the alternative minimum tax rate of 28 percent, those wealthy taxpayers are already restricted to the same percentage on their charitable deductions, Mr. Sharpe says. “A lot of the rich are already used to the 28-percent deduction,” which means the Obama proposal would not result in any change for them.
For those wealthy individuals who currently qualify for the 33- or 35-percent rate, however, President Obama’s proposal would have some financial impact.
To illustrate, Mr. Sharpe offers the example of a wealthy donor in the top tax bracket who makes a $100,000 gift. The donor currently would save $35,000 in taxes, or 35 percent of the gift. Under President Obama’s proposal, that same donor would save only $28,000, or 28 percent — a difference of $7,000. (Editor’s note: this sentence originally referred incorrectly to the $35,000 and $28,000 as the amount that could be deducted, instead of the amount saved in taxes.)
Mr. Sharpe says the proposal would unfairly penalize the most generous taxpayers since wealthy people who give nothing to charity would not face such a tax increase.
Impact on Large Institutions
Bruce Flessner, a fund-raising consultant at Bentz Whaley Flessner, in Minneapolis, says the plan would probably have little impact on organizations that have a broad pool of donors. But large institutions — particularly colleges and universities and academic medical centers — could be particularly hard hit if the plan moves forward.
“It seems like unusual public policy to try, as the president announced to the Congress this week, to return the United States to world leadership in access to higher education and then make it more difficult for extraordinary donors to contribute great gifts to colleges and universities,” Mr. Flessner says.
“Likewise, it seems like unusual public policy to penalize the great medical centers that contribute so much to scientific breakthroughs by making it more difficult for donors to make the six-, seven-, eight-, and nine-figure gifts,” he adds.
Eric Kessler, who advises major donors and foundations for Arabella Philanthropic Investment Advisors, says the proposed limits would not likely immediately affect the behavior of the biggest donors, who tend to plot their giving strategically. “I think it has an effect over time, but I don’t think anybody’s going to pick up the paper tomorrow and say, let’s forgo our commitment to the local theater group.”
But he says its could affect mid-range donors — say those who give in the $1,000 range — “who are less driven by strategy and for whom the deduction plays a significant role in their giving.”
Michael W. Peregrine, a lawyer in Chicago who advises nonprofit groups, says charities are now facing a “triple play” that could cut into their donations — the bad economy, the proposed charitable-deduction limits, and proposals by President Obama to end tax cuts for wealthy people that were introduced by President Bush.
He says he worries that charities that are hurting for donations will become more vulnerable to fund-raising scams. “What is certain is that the perception that this will reduce charitable donations in the short term is going to draw out the fraudsters,” he says.
Republicans who oppose President Obama’s budget proposal have also taken aim at the charitable-deduction measure. “During this difficult time, charities provide vital support mechanisms for families in need of help, and this budget is a direct assault on the financial resources they require,” Eric Cantor of Virginia, the House Republican whip, said in a statement.
But the proposals will not necessarily change giving patterns, says Giving Institute, an association of consultants in Glenview, Ill., and its research arm, Giving USA Foundation.
They noted in a statement that 53 percent of high-net-worth donors surveyed in a 2006 study for Bank of America said their giving would stay the same, or even increase, if the tax deduction for charitable gifts fell to zero.
Giving Institute members have found that “the most important factor in how much people give is how committed they are to the purpose of the request,” the statement said. Furthermore, giving will increase when wealth is created and “if the president’s plan generates more wealth for Americans then giving will go up.”
Holly Hall contributed to this article.
***
What would this move mean to the nonprofit world? Click on the comments link below this post to share your thoughts.
Additional features:
Reactions and comments on our Government and Politics Watch blog.
Discuss how this plan would affect fund raising on our Forums page.
Thursday February 26, 2009 Permalink
Friday, February 20, 2009
MATCHING GIFTS - Double your donations
Matching Gifts Programs
To encourage personal giving, many corporations have established Matching Gifts Programs. Please ask your employer if they have a matching gift program. To facilitate the matching gifts process, please obtain a matching gift form from your place of employment. Complete the application and submit it to the Walker Area Community Foundation, POB 171, Jasper, AL 35502.
A partial list of corporations with matching gifts programs are listed below. Please contact the Walker Area Community Foundation at 205-302-0001 for further assistance.
KNOWN MATCHING GIFTS COMPANIES
Alabama Power Company • Alcan Aluminum Corporation • AllState • Amoco • AmSouth Bank • AmSouth Bank Foundation • AT & T • Auto Zone BellSouth • Blue Cross/Blue Shield • Chubb Life America • CIBA-GEIGY • Cooper Industries Foundation • Dow Chemical • Duracell, Inc. Ernest & Young • Exxon • Exxon Foundation • Fidelity and Deposit • Ford Motor Co. • General Electric • Goodyear Hewlett-Packard • Hoechst Celanese • IBM • International Paper • James River • JC Penney • Johnson & Johnson • Kimberly Clark • K-Mart Martin Marietta • Merril Lynch • Metropolitan Life • Mobil Foundation • Monsanto Chemical Co. • Nabisco • New York Times Foundation Paccar Foundation • Parisian • Parker Hannifin Corporation • Pepsi-Cola • Philip Morris • Proctor & Gamble • R.J.R. Nabisco • Russell Corporation Shell Oil • Smith Kline Beecham Sonat Foundation • Southern Company • State Farm • State Farm Insurance • Temple-Inland Foundation • Tenet-Healthcare Corporation • Tenneco • Texaco • The Boeing Company • The Home Depot • Time Warner Foundation • Tom's Foods Incorporated • U.S. Sprint • U.S. Steel • United Parcel Service • United Technologies • Vulcan Materials • Wal-Mart • West Point Pepperell • Westinghouse • Weyerhaeuser Whirlpool Corporation • Winn-Dixie • Xerox • Xerox Foundation
To encourage personal giving, many corporations have established Matching Gifts Programs. Please ask your employer if they have a matching gift program. To facilitate the matching gifts process, please obtain a matching gift form from your place of employment. Complete the application and submit it to the Walker Area Community Foundation, POB 171, Jasper, AL 35502.
A partial list of corporations with matching gifts programs are listed below. Please contact the Walker Area Community Foundation at 205-302-0001 for further assistance.
KNOWN MATCHING GIFTS COMPANIES
Alabama Power Company • Alcan Aluminum Corporation • AllState • Amoco • AmSouth Bank • AmSouth Bank Foundation • AT & T • Auto Zone BellSouth • Blue Cross/Blue Shield • Chubb Life America • CIBA-GEIGY • Cooper Industries Foundation • Dow Chemical • Duracell, Inc. Ernest & Young • Exxon • Exxon Foundation • Fidelity and Deposit • Ford Motor Co. • General Electric • Goodyear Hewlett-Packard • Hoechst Celanese • IBM • International Paper • James River • JC Penney • Johnson & Johnson • Kimberly Clark • K-Mart Martin Marietta • Merril Lynch • Metropolitan Life • Mobil Foundation • Monsanto Chemical Co. • Nabisco • New York Times Foundation Paccar Foundation • Parisian • Parker Hannifin Corporation • Pepsi-Cola • Philip Morris • Proctor & Gamble • R.J.R. Nabisco • Russell Corporation Shell Oil • Smith Kline Beecham Sonat Foundation • Southern Company • State Farm • State Farm Insurance • Temple-Inland Foundation • Tenet-Healthcare Corporation • Tenneco • Texaco • The Boeing Company • The Home Depot • Time Warner Foundation • Tom's Foods Incorporated • U.S. Sprint • U.S. Steel • United Parcel Service • United Technologies • Vulcan Materials • Wal-Mart • West Point Pepperell • Westinghouse • Weyerhaeuser Whirlpool Corporation • Winn-Dixie • Xerox • Xerox Foundation
Monday, February 16, 2009
Grant Training - March 5, 2009 9am - 1pm @ CHS
From: Alabama Rural Action Commission
Gerald Dial, Executive Director
_______________
Do You want To know more about:
funding for community development?
funding for economic development?
funding for education improvement?
SAVE THIS DATE! march 5, 2009
9:00AM TO 1:OOPM
Community Health Systems Building
204 19th Street East
Jasper, AL 35501
Seating is Limited
Light refreshments will be provided
Please RSVP by February 27, 2009
Contact: Chamber of Commerce (205) 384-4571 Email: linda@walkerchamber.us
Presented by:
Alabama Department of Economic and Community Affairs
Bill Johnson, Director
Gerald Dial, Executive Director
_______________
Do You want To know more about:
funding for community development?
funding for economic development?
funding for education improvement?
SAVE THIS DATE! march 5, 2009
9:00AM TO 1:OOPM
Community Health Systems Building
204 19th Street East
Jasper, AL 35501
Seating is Limited
Light refreshments will be provided
Please RSVP by February 27, 2009
Contact: Chamber of Commerce (205) 384-4571 Email: linda@walkerchamber.us
Presented by:
Alabama Department of Economic and Community Affairs
Bill Johnson, Director
Friday, February 13, 2009
Heritage Center Construction Underway
Reconstruction on the Heritage Center is going very well. General Contractor Jimmy Hodges indicated that the work is on track and might be finished by summer '09.
WACF Grant Deadline is March 2, 2009
Since March 1, 2009 is a Sunday. Grants must be received by the C.O.B. on Monday March 2, 2009 at the Foundation's offices. Email - electronic submission is preferred. Thanks
Comm Fnd of Greater Birmingham - Application Process
Please note that the Community Foundation of Greater Birmingham's competitive grant guidelines have changed temporarily for 2009 as part of our response to local and national economic conditions.
APPLICATION DEADLINE FOR OUR SPRING 2009 CYCLE IS MONDAY, MARCH 16TH
CLICK the link below to access the new guidelines and revised applications.
http://cts.vresp.com/c/?CommunityFoundationo/4c024a549a/9ab02eb62d/7d6721b69c
To assist in our planning for the upcoming grant cycle, we are asking those agencies who are eligible to participate in the spring 2009 grant cycle and plan to submit a grant request complete a short electronic form expressing their intent to file (a grant application in the spring 2009 cycle).
Just send an e-mail to me at jmccrary@foundationbirmingham.org requesting the link to the 'intent to file' form.
Thanks!
James McCrary, Senior Program Officer
Community Foundation of Greater Birmingham jmccrary@foundationbirmingham.org
(205) 327-3812
APPLICATION DEADLINE FOR OUR SPRING 2009 CYCLE IS MONDAY, MARCH 16TH
CLICK the link below to access the new guidelines and revised applications.
http://cts.vresp.com/c/?CommunityFoundationo/4c024a549a/9ab02eb62d/7d6721b69c
To assist in our planning for the upcoming grant cycle, we are asking those agencies who are eligible to participate in the spring 2009 grant cycle and plan to submit a grant request complete a short electronic form expressing their intent to file (a grant application in the spring 2009 cycle).
Just send an e-mail to me at jmccrary@foundationbirmingham.org requesting the link to the 'intent to file' form.
Thanks!
James McCrary, Senior Program Officer
Community Foundation of Greater Birmingham jmccrary@foundationbirmingham.org
(205) 327-3812
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