Nearly 30 CMF members are back at home this week after traveling to Washington, D.C. to meet with our Michigan congressional delegation and senators for Foundations on the Hill.

During their time on Capitol Hill, members from all foundation types and every corner of Michigan shared stories of their work with our lawmakers to demonstrate the importance of Michigan philanthropy.

“Educating and informing our Michigan delegation about the importance of philanthropy is an important and long-standing focus of CMF,” Neal Hegarty, chair, CMF Board of Trustees and vice president of programs, Charles Stewart Mott Foundation said. “The lawmakers continually remark to us that they value our input and appreciate learning about how policy impacts philanthropy in Michigan.”

Following a meeting with Senator Gary Peters, the senator tweeted, “The support offered by foundations has been critical to Michigan’s resurgence. Thank you to CMF for all you and your members do to make Michigan a better place.”

CMF and its members also shared several talking points with legislators, including the benefits of public-private partnerships, workforce development efforts and an accurate and thorough census, as well as policies that affect the effectiveness of philanthropy and the communities we serve.

“It is of the utmost importance to share with our legislators the impact that public-private partnerships have when investing in our communities, particularly in the youth sector,” Sara Morley LaCroix, trustee, CMF Board and trustee, Morley Family Foundation said. “Census 2020 is pivotal in funding. Many of the programs that help prevent delayed learning and help sustain a healthy environment for learning rely on an accurate census count.”

Here are a few key topics discussed at Foundations on the Hill:

• The Charity Act: This bill would simplify the excise tax on private foundations to a flat 1 percent, which would relieve the burden on administrative and financial calculations for foundations. CMF sponsored research by Cambridge Associates which confirms the current formula is an administrative and financial burden to calculate and it results in less giving. It would also permit IRA charitable rollover gifts to donor advised funds (DAFs). We know that DAFs continue to be the fastest growing form of organized philanthropy in Michigan and across the country.

• Census 2020: Every person counts: CMF requested that federal government not add the citizenship question to the Census 2020 form because it hasn’t been field tested. All of the questions on the census form to-date have been tested. By law, the form closes on March 31 and adding the citizenship question now would mean it’s too late to be field tested and would make it the only untested question on the form. The upcoming census is facing many challenges, including underfunding on the federal level. We know how important an accurate and equitable count is for Michigan, as our state stands to lose an estimated $1,800 for every person who isn’t counted. CMF in partnership with the Michigan Nonprofit Association (MNA), has asked Congress to allocate $4.7 billion for the Census Bureau in the 2019 fiscal year that will keep the census preparations on track and help achieve an accurate count. Read more about MNA’s Michigan Nonprofits Count Campaign and the challenges facing Census 2020.

• Protect the Johnson Amendment: While the tax reform package preserved the Johnson Amendment, there are still talks on Capitol Hill about repealing it. The Johnson Amendment as it stands today keeps politics out of the charitable sector and retains the public’s trust, maintaining the long-standing rule of not allowing charitable organizations to accept political donations, endorse candidates, i.e. become politicized. Last year, CMF joined nearly 4,500 nonprofit organizations in signing a letter of nonpartisanship which urged Congress to maintain the Johnson Amendment. 

• Economic analysis of tax reform on charitable giving: In D.C. CMF requested an economic analysis on the impact of the new tax act on charitable giving and jobs in the nonprofit sector, as we know that prior research has estimated that the tax reform package could reduce charitable giving by up to $19 billion a year and result in the loss of 220,000 plus jobs. We also asked in alignment with CMF’s Government Relations goals that lawmakers support legislation to incentivize giving by all Americans.

• Support federal funding of public-private partnerships with the nonprofit sector through federal departments, agencies and programs such as: the Corporation for National and Community Service, the National Endowments for the Arts and Humanities, and Great Lakes Restoration Initiative, without which the quality of life for all Michiganders would be diminished.

Several CMF members, including Brenda Hunt, president and CEO, Battle Creek Community Foundation (BCCF) also met with the U.S. Treasury Department to discuss the new unrelated business income tax (UBIT) on targeted fringe benefits that include transportation and wellness for employees of any 501c (3) nonprofit, mission-related investments (MRIs) and potentially other paths of investments.

“It was a very useful meeting with Treasury Department representatives in order to discuss solutions for potential UBIT taxes that could inadvertently negatively affect the good work of foundations and many nonprofits,” Hunt said. “CMF played a key leadership role in defining the impact and with member input providing examples of how clarity and correction would be useful to supporting the good work being done.”

Carolyn Bloodworth, secretary and treasurer, Consumers Energy Foundation, who’s been attending FOTH with CMF for years said, “It is an incredible learning opportunity. I always return energized, inspired and grateful to work in a field with so many incredibly talented and amazing professionals.”

Bloodworth is the longest running member to attend FOTH. While at FOTH this year, she shared all of the action from the Hill in a Twitter takeover on CMF’s Twitter account (@michfoundations) to share updates with the membership. Posts included thanks to a number of individuals who met with the group, such as Representative Mike Bishop on the Ways and Means Committee and Senator Debbie Stabenow who sits on the Senate Finance Committee.

(Tweet 3/14/18): “Thank you @RepMikeBishop for meeting with us and supporting issues important to #philanthropy the #census2020 #workforce development and #GLRI #CMFontheHill #FOTH18 #FabulousRob – at Cannon House Office Building”

(Tweet 3/14/18): “Our youngest member of the team, Mackenzie, had a seat at the table and enjoyed the opportunity to meet with both of Michigan’s Senators, including a warm welcome and hello from @SenStabenow #CMFontheHill #FOTH18"

CMF’s policy-focused affinity groups are developing their strategies for 2018. For instance, next month the Health Funders Affinity Group will review their policy framework at their convening and decide on which policies they may address in 2018.

Fast facts about Michigan philanthropy:

• 2,609 foundations in Michigan collectively give more than $1.98 billion annually.
• The top five focus areas of total giving include: education; arts and culture; community and economic development; health; and human services.  

Want more?

Learn more about Census 2020.

Check out the resource: Philanthropy Advocacy Playbook.

View our latest Michigan Philanthropy stats. 

See the CMF Governance Committee’s 2018 Government Relations Goals.