Dear Colleague,

Philanthropy Week in Washington, Foundations on the Hill, the throngs of foundation people (and not a few non-foundation people) hitting Capitol Hill this week…all seem to be largely focused on the threats they perceive from proposals such as President Obama’s renewed pitch to cap charitable deductions at the 28 percent tax level, Congressman Camp’s tax reform idea for a charitable giving deduction floor, and other changes that both the president’s FY2015 budget proposal and Congressman Camp’s discussion draft of comprehensive tax reform might entail for foundations and for charities as well. 

This issue of the Cohen Report, following four days of Philanthropy Week coverage here at Nonprofit Quarterly, reminds readers that there’s a lot more richness, complexity, and challenge to the world of philanthropy than many of the foundation lobbyists are presenting to members of Congress. Let’s not dumb down the image and substance of American philanthropy in order to create a salable message for Congress. Selling philanthropy short in Philanthropy Week messaging could lead senators and representatives toward confusing philanthropy with charity. 

While many of the legislative proposals that might affect foundations are probably non-starters, in both President Obama’s FY 2015 budget and Congressman Camp’s tax reform discussion draft, there is much for Congress and foundations to talk about, particularly the widening social and economic inequality in our society that foundation lobbyists ought not paper over. The charitable deduction, the role of foundations, the private foundation excise tax, issues of foundation and donor-advised fund payout level—these are all issues that should not be examined as though philanthropy were a special interest.

Foundations are an important tool for addressing the social and economic needs of the nation. Congress and foundations ought to be doing deep thinking about what foundations can do—just as many of this week’s op-ed authors here at Nonprofit Quarterly, particularly Don Mathis of the National Community Action Partnership and Gary Bass of the Bauman Foundation have suggested.

Also this week, Nan Aron of the Alliance for Justice addressed foundation roles in protecting nonprofit rights in civic engagement, while Tim Delaney of the National Council of Nonprofits spelled out a vital arena for nonprofit civic engagement—the states. Don’t sell philanthropy short on what foundations can and should be doing at all levels of society. This issue of the Cohen Report explains some of the reasons why the complexity and dynamism of philanthropy should be celebrated, not hidden or dumbed down.

Stay in touch.
Rick Cohen