Government Update

Grassley, Baucus Announce Bill to Curtail the Use of Charities in Life Insurance Deals. Senate Finance Committee Chairman Charles Grassley (R-IA) and Ranking Member Max Baucus (DMT) introduced legislation aimed at reducing abuses in certain life insurance contacts involving tax-exempt organizations. The bill will target life insurance contracts that inappropriately afford benefits to private investors that would not otherwise be available without the charity's involvement.

In a May 3 Senate Finance Committee press release, Senator Baucus pledged to work with Senator Grassley, "to make sure that these insurance scams are shut down quickly." While the Senate Finance Committee has been examining life insurance deals involving charities for some time, the issue was not mentioned in the committee's June 2004 staff discussion draft. Read the press release at http://finance.senate.gov/press/Gpress/2005/prg050305.pdf. The contents of the bill are consistent with the Council on Foundations' position on rooting out abuses in the field. Through a two-year program called "Building Strong and Ethical Foundations: Doing It Right," the Council is spearheading a national initiative to encourage and enforce foundation standards of ethics and accountability, and increase collaboration with state and federal regulators to stop bad practices. Read the press release discussing the Council's support of the bill at www.cof.org/Content/PressRelease/Display.cfm?pressReleaseID=2596.

Senate Finance Committee Hearing on Land Donations Expected in Early June. The Senate Finance Committee is expected to hold another hearing on charities in early June. The hearing will focus on land donations, including the committee's review of the operations of The Nature Conservancy and limitations on gifts of appreciated property. For more information on either of these matters, contact Diane Canova (canod@cof.org or 202/467-0405), Luis Maldonado (maldl@cof.org or 202/467-0394) or Brian Flahaven (flahb@cof.org or 202/467-0424).

Foundations on the Hill 2006 Scheduled for March 14–15, 2006. The Council on Foundations and the Forum of Regional Associations of Grantmakers announced that Foundations on the Hill 2006 will take place on Tuesday and Wednesday, March 14–15, 2006 in Washington, DC. Foundations on the Hill is an annual event designed to inform members of Congress about the important role foundations play in their communities, districts and states.

A record 180 foundation representatives from around the country participated in Foundations on the Hill 2005, the largest number of participants in the event's 11-year history. For more information, visit www.foundationsonthehill.org.

—Brian Flahaven