As we look to a new year in a few weeks, we are sharing updates on key policies and opportunities to create and deepen partnerships with our policymakers.

In January, we will welcome three new members of Congress, along with the start of a new Michigan Legislature. This will lead to new opportunities for CMF and Michigan philanthropy to educate new policymakers about the work of philanthropy with and in communities and how we can serve as a thought partner to them for the long term.

The recent passage of the Legislative Term Limits and Financial Disclosure Amendment on the November ballot that CMF advocated for will allow legislators to serve up to 12 years. We hope this passage brings more opportunities to build strong, lasting relationships with legislators over time that would not only help with policy issues that are priorities for our CMF community but will help address issues that affect the health of the sector.

Here are a few updates on legislation at the state and federal levels we are tracking:

Expanding the Earned Income Tax Credit

As a member of the Earned Income Tax Credit (EITC) coalition, CMF encourages organizations to reach out to legislative leadership for their support for EITC expansion during the lame-duck session.

As CMF reported, CMF partnered with Michigan Future, Michigan League for Public Policy and others in supporting the increase of the state EITC to 30%. More than 80 business, religious, service and policy groups around the state have come together to support a proposal to raise Michigan’s EITC. 

The EITC receives bipartisan support and is a refundable tax break for working families offered at the federal and state level. 

The EITC supports working families earning a maximum of $57,000 a year (if they have three children). This would be a significant tax cut for working families, helping 750,000 Michigan families and nearly one million children.

Recommendations to Improve the 2030 Census

CMF and the Michigan Nonprofit Association recently submitted comments to the U.S. Census Bureau in response to its solicitation of input and suggestions on 2030 Census preliminary research.

The Bureau sought responses to questions about how it can ensure that historically undercounted populations are included as well as a better list of group quarters facilities, such as student housing and shelters for unhoused people.

CMF and MNA’s comments made the following recommendations to the U.S. Census Bureau:

• Prioritize partnerships with nonprofits as trusted messengers serving their communities.
• Adopt improved data collection methods to represent diverse populations and allow for the highest rate of response.
• Provide clear messaging and communications with government and nonprofit partners.

If you are interested in reading a copy of the submitted comments, please contact CMF’s Government Relations and Public Policy team.

Universal Giving Pandemic Response and Recovery Act

Last month CMF joined nonprofit leaders from across the county urging congressional members to pass the Universal Giving Pandemic Response and Recovery Act.

The Universal Giving Pandemic Response and Recovery Act restores the tax deductions and incentives for giving, which provides resources for charitable and faith-based organizations to continue providing vital services to families, workers and communities, especially those critically impacted by the ongoing pandemic. It also allows individuals who do not itemize to receive the benefit.

This legislation would:

• Create a much-needed boost to the nonprofit sector while creating more fairness in the tax code for working-class families.  
• Expand the now-expired $300/$600 cap on the universal charitable deduction to one-third of the standard deduction, roughly $4,000 for individuals and $8,000 for joint filers.
• Extend the availability through 2022 and would eliminate the exclusion of gifts to donor advised funds from the current universal charitable deduction.   

Recent data suggests that the temporary universal charitable deduction passed as part of the CARES Act in 2020 was effective in helping increase small gifts. According to data from the Fundraising Effectiveness Project, on December 31, 2020, there was a 28% increase in gifts of $300, which was the maximum amount of the universal charitable deduction available to individual donors. 

CMF continues to advocate for the restoration and expansion of the charitable deduction.

These are key areas we will continue discussing with our policymakers and welcome our new policymakers during Foundations on the Hill 2023.

Save the date to join your fellow CMF members for the return of an in-person FOTH, hosted by United Philanthropy Forum, taking place February 27 – March 1, 2023, in Washington, D.C.! We will add registration information to our events calendar as soon as it is available in the coming weeks.

Also coming in 2023, CMF’s Government Relations Public Policy Team is planning an in-person Foundations in Lansing for CMF members to engage with our state lawmakers, more details are coming soon!

In the meantime, if you’re looking for more resources or information on how you can engage in policy and advocacy, connect with our team.