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Public Policy

Philanthropy Delaware advances the work of our members, and philanthropy as a whole, by advocating at the state and national level. We aim to engage in effective policy that will strengthen philanthropy and advance issues that members support, strengthen relationships and partnerships between philanthropy and government, and provide a strong, collective voice for philanthropic interests within Delaware.

Here are some current resources we have gathered to assist you in your own public policy conversations, as well as information to keep you informed on the latest advocacy trends affecting philanthropy.

  • January 03, 2020 11:13 AM | Cynthia Pritchard (Administrator)

    Advocacy Update 2020

    The “Further Consolidated Appropriations Act, 2020” also known at H.R. 1865 became law on December 20, 2019. Within this act are two important provisions of which you need to be aware:

    • The simplification of the excise tax on net investment income; and
    • The retroactive repeal of the unrelated business income tax on qualified transportation fringe benefits.

    Excise Tax Simplification

    As you well know, private foundations are currently required to pay a 2% excise tax on net investment income. If certain distribution requirements are met, the tax can be reduced to 1%. Beginning with the fiscal 2020 tax year, the excise tax rate has been set at a flat 1.39% regardless of your distributions. In practice, this means some foundations will pay more and some less, although adjusting your grants to qualify for a lower rate will no longer be necessary.

    A CPA specializing in foundations and nonprofits, sees this as a major change. “The flattening of the excise tax is something that has been discussed for years. By having one rate of 1.39%, foundations can concentrate on grant distributions, without a tax consideration, in pursuit of their philanthropic goals,”

    Qualified Transportation Fringe Benefits Repeal

    The unrelated business income tax, or UBIT, on qualified transportation fringe benefits, has been repealed retroactive to the original date of enactment (December 2017). If this affected your foundation, you may want to file amended 990T returns to claim a refund for taxes paid or incurred after December 31, 2017.

  • April 01, 2019 9:27 AM | Philanthropy Delaware (Administrator)

    April 1, 2020 is the count day for Census 2020. One year from now we will be counting all the residents of the United States. The census is critical to federal dollars in Delaware.  In FY2016 Delaware received $3,020,191,091 through 55 Federal spending programs guided by data derived from the 2010 census. Here is the full report. 

  • March 06, 2019 2:53 PM | Philanthropy Delaware (Administrator)

    Senators Chris Coons (D-DE), James Lankford (R-OK), and Rep. Mark Walker (R-NC) today re-introduced bipartisan, bicameral legislation to protect churches, charities, and other nonprofit organizations from a provision in the tax law that would tax some employee benefits for the first time. The Lessening Impediments from Taxes (LIFT) for Charities Act, would repeal a section of the tax code that requires some tax-exempt organizations to pay federal taxes on employee benefits, like parking, meals, or transportation benefits.

    Click here for more

  • December 04, 2018 3:50 PM | Kurt Foreman

    On Tuesday, Senators Chris Coons (D-DE) and Jim Lankford (R-OK) sent a letter to Treasury Secretary Steven Mnuchin requesting a delay in implementation of the new unrelated business income tax (UBIT) provisions that took effect on Jan. 1, 2018, after the passage of last year's tax code overhaul. These new provisions require that 1) tax-exempt organizations with more than one unrelated trade or business activity treat each activity separately for the purposes of calculating unrelated business income, and 2) tax-exempt organizations pay UBIT on the value of certain fringe benefits provided to employees—such as transportation benefits and on-premises gyms. The letter asks Treasury to delay the implementation of the UBIT provision for a full year after the final regulations are issued by Treasury.

    Read the full letter here a
    nd Sen. Coons' press release here. 


  • July 03, 2018 10:21 AM | Cynthia Pritchard (Administrator)
    United Philanthropy Forum has created a quick link for funders to sign on to the 2020 Census removal of Citizenship Question.
    1. The Commerce Department and the Census Bureau published a June 8, 2018 Federal Register notice requesting comments about the 2020 Census. This is an opportunity to let the Commerce Department know that the citizenship question should be removed from the 2020 Census. Shortly after that notice, I sent you a sign-on letter (for funders only) calling for the citizenship question to be removed from the census. 

  • July 03, 2018 10:15 AM | Cynthia Pritchard (Administrator)

    Great news! Last Thursday, with overwhelming bipartisan support, Senators passed their Farm Bill that preserves and strengthens SNAP. A variety of amendments were considered, including one that would have created harsher SNAP time limits and requirements for those looking for work, including parents with young children. Nonrprofits had encouraged Senators to reject harmful amendments to SNAP and to maintain the bipartisan SNAP provisions agreed to in the legislation. Fortunately, Senators tabled the harmful amendment and ultimately maintained the bipartisan SNAP provisions. 

  • June 21, 2018 10:25 AM | Cynthia Pritchard (Administrator)

    AEI Economic Perspectives paper on how the Tax Cuts and Jobs Act affects household charitable giving in the United States.  They found that the law will reduce charitable giving by $17.2 billion (4 percent) in 2018 according to a static model and $16.3 billion assuming a modest boost to growth. Four-fifths of this decline is driven by an increase in the number of taxpayers who claim the standard deduction. They also investigate two policy options that could boost total giving above previous levels; an  above-the-line deduction and a tax credit. 

    Click here for the full paper

Copyright Philanthropy Delaware, Inc. 2017
Philanthropy Delaware, Inc. is a 501(c)3 nonprofit organization

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