Schedule of Exempt Org Tax Section meeting at ABA Tax Section May Meeting
I am heading to DC today via Amtrak from Pittsburgh on my way to my annual pilgrimage to the ABA Tax Section May Meeting. Though I attend other committees, my main committee is the Exempt organizations group. The schedule is below. Particularly topical and useful this year:
8:00 AM – 8:15 AM Exempt Organizations Committee Business
8:15 AM – 10:30 AM Univ of DC & Catholic Univ, Level M1 Univ of DC & Catholic Univ, Level M1 Exempt Organizations AM Session
8:15 AM What’s Next in Nonprofit Tax Administration? What are the Administration’s tax priorities regarding the nonprofit sector? Will the donor advised fund proposed regulations be finalized, revised, or withdrawn? Are other nonprofit regulations on the chopping block? Panelist: Ken Kies, Department of Treasury (Invited)
9:30 AM Taxing Universities and Other Endowments. Congress is considering proposals to increase tax rates on college and university endowments by as much as 1400%, from a rate of 1.4% to 21%. Other proposals would increase the rate as well as the scope of the tax, causing it to apply to a larger number of schools. Still others require changes to institutional policies and governance in exchange for lower tax rates, including exemptions for religious institutions, controlling student demonstrations, and combating antisemitism. Does the logic of taxing university endowments also apply to other nonprofit endowments? Panelists: Diana Aviv, Partnership for American Democracy; Liz Clark, NACUBO; Gadi Dechter, Princeton; Andrew Lai, Joint Committee on Taxation
10:30 AM – 10:45 AM Networking Break
10:45 AM – 11:45 AM Univ of DC & Catholic Univ, Level M1 Exempt Organizations AM Session 10:45 AM Tariff(y)ing Tax Exempts. Taxation of nonprofits. Nonprofits are not subject to federal income tax or state sales tax, so should they be subject to tariffs when they buy goods and services in furtherance of their charitable missions? Taxation of donors. Donors and grantees are not subject to federal or state tax on charitable gifts. Should charitable gifts be subject to tariffs? Is a charitable gift “consumption” that is properly within the consumption tax base, provided that neither the donor nor the donor’s family benefit from the gift? Does the consumption tax base apply to tariffs? Customs exemption. As a practical matter, how do charitable organizations apply for exemption from tariffs as importers of goods and services in furtherance of their charitable missions? Are all 501(c)(3) organizations eligible for exemption, or only a subset? What about other tax exempt organizations, like social welfare organizations, labor unions, and chambers of commerce? Is it necessary for every exempt organization to apply separately for every good/service from every exporting country? Or is there a way to simplify the process? Who has the power to grant approval, and if approval can be withheld, who decides whether that denial is appropriate? Can a denial be appealed, and if so to whom or what court? Programmatic implications. How does the system of global tariffs impact the programmatic work of nonprofits. For example, can environmental organizations seeking to reduce carbon emissions advocate for lower tariffs on low emissions international trade? Could this be a step toward a global carbon tax? Another example is slavery and human trafficking. Could tariffs be used to reduce or eliminate slavery from the global supply chain? Panelists: Itai Grinberg, Georgetown University School of Law; Pamela Olson, PwC
11:45 AM – 12:15 PM Networking Break
12:15 PM – 1:15 PM Univ of DC & Catholic Univ, Level M1 Exempt Organizations Subcommittee Session: Private Foundations, International Philanthropy, Community Foundations & UBIT 12:15 PM – 1:15 PM Howard Univ, Level M1 Exempt Organizations Subcommittee Session: Health Care Organizations; State and Local Regulation; Audits, Appeals & Litigation; Compensation and Benefits
1:15 PM – 1:30 PM Networking Break
1:30 PM – 2:30 PM Univ of DC & Catholic Univ, Level M1 Exempt Organizations Subcommittee Session: Political and Lobbying Organizations 1:30 PM – 2:30 PM Howard Univ, Level M1 Exempt Organizations Subcommittee Session: Educational Organizations; Religious Organizations
3:00 PM – 5:00 PM Univ of DC & Catholic Univ, Level M1 Exempt Organizations PM Session
3:00 PM Termination of Government Grants. Many nonprofit organizations recently had their government contracts terminated, even if their funding was provided by congressional statute. The stated basis for terminating the grants in many cases is engaging in diversity, equity, and inclusion related activities. Federal funding for Southern Education Foundation’s school desegregation work, which was enshrined in Title IV of the Civil Rights Act of 1964, has also been terminated. Does the Administrative Procedures Act provide relief for organizations in this predicament? Panelists: Jamar Creech, Romano Law; Raymond Pierce, Southern Education Foundation
4:00 PM Preparing for Investigations. Congress, federal agencies, state attorneys general, and private plaintiffs each have powers to investigate nonprofit organizations and to challenge their conduct and activities. Each type of regulator has its own powers, limitations, and rules of engagement. For example, a House Committee on Oversight and Accountability investigation may be very different from a House Ways and Means Committee Subcommittee on Oversight investigation. A New York Attorney General investigation about governance may be very different from a Qui Tam (False Claims Act) complaint or a Strategic Lawsuit Against Public Participation (SLAPP). An Internal Revenue Service investigation of tax-exempt status may be very different from a Department of Justice investigation of civil rights abuses. All of these investigatory powers implicate the First Amendment freedom of association, speech, religion. How should nonprofit organizations prepare themselves to defend against investigations? Panelists: Andrew Grossman, BakerHostetler; Peter Roskam, BakerHostetler