I need some help from the "legal beagles" and the "tax beagles" among the Brin-Lers.
This came into my Inbox and wherever possible I try to do as much homework as possible before taking action. I checked http://thomas.loc.gov/cgi-bin/query/F?c108:1:./temp/~c108gznd6N:e21814 or http://tinyurl.com/djqc and wasn't really capable of consolidating the consequences the Ethel Louise Armstrong Foundation claims the amendments to Section 105 will have on the Charitable Giving Act of 2003 . I would have appreciated them including the URL rather than just referring to it. I suppose a lot of people would just go and write the letter they are suggesting without giving it further thought. Cheers! -- Han Tacoma ~ Artificial Intelligence is better than none! ~ ----- Original Message ----- Date: Thu, 5 Jun 2003 00:01:25 -0500 From: Disabled Disability and Psychology Discussion Group <[EMAIL PROTECTED]> Date: Wed, 4 Jun 2003 00:15:11 -0400 From: LCCCD Inc <[EMAIL PROTECTED]> Subject: We need your help to save Foundation dollars now and in the future We need your help to save Foundation dollars now and in the future!!! Dear Friends, I need your help in an important matter that will affect the future of Foundations across America. There are many laws that govern the administration and philanthropy of foundations that have been in effect for many years. We are at a crucial point in history when these current laws are about to change and could wipe out small to medium sized foundations forever. All foundations are supposed to distribute 5% of their endowments annually. Some administrative costs can be charged against the 5% which allows small foundations to accomplish their vision and mission. Currently there is a bill in the house: Section 105 of H.R.7; that will not allow a foundation to use any of its current allotment for administration of grants and will demand that foundations give away a higher percentage of their shrinking assets than in the past. This legislation is very short sighted in that foundations will be forced to spend down their endowments more quickly and have nothing left for the future. Therefore, millions of foundations will disappear in a short period of time if this legislation is allowed to go forth. The future of millions of small foundations across the United States are dependent upon the defeat of Section 105 of HR7. I need you to help us fight this unfair proposed legislation. Time is of the essence since they may start to move this bill through the house when they return on June 3. I am including a copy of a letter that you can revise or use to send to your Congressman. You can go to www.congress.org and send an email to your legislator directly or mail it to them at the address provided on that website. If you would pass this message on to other nonprofits and friends that will be adversely affected by this legislation now and in the future, that would be helpful as well. If you have questions or need information, please contact me directly. Thanks for your help in this important matter. Deborah Lewis Executive Director Ethel Louise Armstrong Foundation 2460 North Lake Ave. PMB #128 Altadena, CA 91001 (626)398-8840 voice (626)398-8843 fax [EMAIL PROTECTED] www.ela.org -------------------------- The letter you can use is below: Dear Congressman.... The majority of foundations strive to practice ethical and responsive philanthropy, to do effective grantmaking and to be of value to our communities as well as to our grantees. So I am curious as to why Congress wants to destroy small to medium foundations in the United States. In H.R.7 there is a provision in Section 105 that will eliminate all small and medium foundations in the US in a very short time. Let me tell you why: This provision eliminates the ability for foundations to provide administrative costs associated with the current 5% payout. Those of us who have small to medium sized endowments would be forced to dig deeper into our already diminishing principle. This will mean an eventual zeroing out of foundation resources and elimination of millions of foundations across the United States. Foundations have to earn a minimum 10% rate of return on investments in order to do the bare minimum of a 5% payout. No one is currently getting a 10% rate of return in this economy. With the shrinking stock market and lower rates of return, all foundations have already lost substantial investments in their portfolios. This means smaller endowments for foundations to depend on for current and future grantmaking. For grantees and communities this means a bigger infusion of donations in the short run and then, ...nothing. In the long term this will have a disasterous effect on the non profit community as well as the most vulnerable segments of our society. In the long run it will also discourage future philanthropists to create endowed foundations. While H.R.7 might be a popular bill that is highly supported in Congress, Section 105 has devastating effects as you can see. Please take this provision out of H.R.7 and allow foundations to continue to support their communities now and for many years to come. Sincerely, _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
