ASAE government affairs: issues and actions.An update on legislative and regulatory developments affecting associations. Throughout the past year, the association community as a whole has come under increasing political attack. The primary threats to associations stem from increasing government attempts to restrict associations' constitutional rights of association and free speech, efforts to impose government-initiated "membership" criteria upon associations, and serious attempts to tax all nonprofit organizations by eroding the basis for their current income tax exemption tax exemption, immunity from the requirement of paying taxes. Federal, state, and usually local law provide exemption from taxation for a wide variety of organizations, usually not-for-profit, such as churches, colleges, universities, health care providers, various . Politicians and regulators have begun to consider these exemptions a potential source of revenue and have taken steps to impose new qualifications and regulations on association activities. The American Society of Association Executives The American Society of Association Executives (ASAE) is a non-profit professional organization for executive directors and executive vice presidents of professional societies both in the United States and abroad. currently addresses numerous active issues - as many as 8-10 at any given time. In addition, ASAE ASAE American Society of Association Executives ASAE American Society of Agricultural Engineers (Society for Engineering in Agricultural, Food, and Biological Systems) ASAE Alkali-Sulfite-Anthraquinone-Ethanol launches advocacy efforts in the judicial branch and participates in a variety of administrative hearings and rule-making procedures. And, through ASAE's new grass-roots effort, more than 700 association volunteers nationwide are actively addressing public policy issues. Following are brief descriptions of some of the government affairs issues being addressed by ASAE. Lobby tax ASAE is working to repeal or invalidate in·val·i·date tr.v. in·val·i·dat·ed, in·val·i·dat·ing, in·val·i·dates To make invalid; nullify. in·val the lobby tax law. Under the law, the portion of members' association dues that goes toward lobbying is not tax deductible. ASAE has mobilized more than 700 association executives in a nationwide repeal effort. Lobby tax - legislation. Legislation has been introduced in the House of Representatives to amend the Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. and to restore the deduction for lobbying expenses for state lobbying activities. Action is expected during the next session of Congress. Lobby tax - litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . ASAE filed suit in Federal Court to have the lobby tax overturned on grounds that the law unconstitutionally infringes associations' and association members' constitutional rights to exercise free speech, to be afforded equal protection, to associate, and to petition government. ASAE is prepared to litigate the matter to the U.S. Supreme Court if necessary. Lobby tax - regulation. The Internal Revenue Service issued final rules implementing the lobby tax law. These regulations define influencing legislation, determine the allocation of costs to lobbying, and specify which tax-exempt organizations are exempt from compliance with the lobby tax law. The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. accepted several of ASAE's key comments and eliminated onerous provisions, but ASAE opposes the overbroad and vague definition of lobbying prepared by tax officials. ASAE position: ASAE continues to focus its efforts to work for the repeal of lobby tax legislation and regulations. Section 401 (k) plans Although at press time no revenue reconciliation act had been signed into law, budget legislation is likely to include language to reinstate To restore to a condition that has terminated or been lost; to reestablish. To reinstate a case, for example, means to restore it to the same position it had before dismissal. Section 401(k) savings plans for all 501(c) organizations. ASAE position: The push for reinstatement of Section 401(k) plans for all association executives continues to be a top priority for ASAE. Music licensing The Fairness in Musical Licensing Act of 1995 was introduced in the House and is gaining momentum. In addition, 1995 ASAE Beacon Award Winner Senator Craig Thomas Craig Thomas is a name shared by the following individuals:
The legislation has the support of the Music Licensing Fairness Coalition, a group of associations of which ASAE is a member. Both bills contain provisions to greatly assist associations and small-business owners in dealing with music licensing for copyrighted live and recorded music recorded music n → música grabada used at events. ASAE position: At present, ASAE and the Music Licensing Fairness Coalition are continuing to push for co-sponsors in an effort to hold hearings in the Judiciary Committee Judiciary Committee may refer to:
Lobbying disclosure The Lobbying Disclosure Act of 1995 passed the Senate and House and, at press time, was awaiting President Clinton's signature. The legislation is a compromise bill that includes many of the changes desired by the association community. ASAE position: ASAE lobbied in favor of this legislation and coordinated a sign-on letter with more than 600 associations as signatories. Federal grant money Representatives Ernest Istook (R-OK) and David Mcintosh (R-IN) have been pushing legislation that would prohibit any organization that receives federal grant money from spending more than 5 percent of its budget on lobbying - broadly defined - regardless of how the lobbying is funded. As of press time, no attempt to attach this legislation to a bill as an amendment has been successful. ASAE position: ASAE strongly supports current law, which states that federal grant money cannot be used for legislative advocacy of any kind. We agree that it is inappropriate for American tax dollars to be used in attempting to influence legislation or agency action. However, it is very important that associations retain the right to fully advocate on behalf of their members, and to provide expertise and services to the federal government by accepting grant money to perform functions that the government has chosen not to do directly. Organizations should not be restricted from using their own funds in playing an active role in public policy. Campaign finance reform Campaign finance reform is the common term for the political effort in the United States to change the involvement of money in politics, primarily in political campaigns. and PACs At the beginning of the 104th Congress, Senate Republicans stated that they would not bring the issue of campaign finance up again in 1995. ASAE opposes public financing of elections because it would take away individuals' rights to free speech by forcing them to contribute money to candidates they may not support. In late 1993, the Federal Election Commission (FEC See forward error correction. FEC - Forward Error Correction ) passed a rule defining membership in an association. For associations with political action committees, the new rule had a major impact on which association members could be solicited for PAC contributions and which association members could receive political communication. Most recently, the U.S. Court of Appeals for the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). Circuit ruled in favor of the American Medical Association American Medical Association (AMA), professional physicians' organization (founded 1847). Its goals are to protect the interests of American physicians, advance public health, and support the growth of medical science. (AMA (Automatic Message Accounting) The recording and reporting of telephone calls within a telephone system. It includes the calling and called parties and start and stop times of the call. ), Chicago, and the U.S. Chamber of Commerce The U.S. Chamber of Commerce is the world's largest not-for-profit federation of businesses, representing more than 3 million businesses and organizations in the United States. As of 2003, the chamber was comprised of 3000 state and local chambers and 830 business associations. , Washington, D.C., in their challenge to the member definition for associations. At issue was the government's prohibition of partisan communication and political action committee solicitation for all but those members who could pass the FEC's definition of member. In effect, the U.S. government said the chamber could not communicate political endorsements to its 220,000 members, and AMA could not make partisan communication or solicitations to tens of thousands of its members. The court not only rejected the district court finding that the chamber and AMA did not have "standing" to sue over the issue (the lower court insisted that they had to be "damaged" before they could press their First Amendment complaint), but it also went on to determine that the member definition itself is wrong. ASAE views this latest decision as a major victory for associations. ASAE position: ASAE believes that the FEC definition of member is excessively narrow. ASAE does not believe that it should be within the scope of the FEC to redefine who is and who is not a member of an association. ASAE supports the right of associations to maintain political action committees for their members. PACs give association members a valuable tool for influencing the political process. Associate member dues In two 1993 IRS rulings, the IRS concluded that dues paid by an organization's associate members who receive unrelated benefits - for example, advertising and access to insurance - are really not tax-exempt dues, but rather are taxable as unrelated business income. The IRS has issued revenue procedures Revenue procedures are published statements of the Internal Revenue Service practices and procedures. Revenue procedures are published in the Internal Revenue Bulletin. that establish' a "principal purpose" test to determine whether a class of dues income will be subject to unrelated business income tax Unrelated Business Income Tax (UBIT) in the U.S. Internal Revenue Code is the tax on unrelated business income, which comes from an activity engaged in by a tax-exempt 26 USCA 501 organization that is not related to the tax-exempt purpose of that organization. , or UBIT UBIT Unrelated Business Income Tax UBiT Universitetsbiblioteket I Trondheim (NTNU Library) . According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the IRS, if there is "real involvement by associate members in exempt function activities, in policy-making pol·i·cy·mak·ing or pol·i·cy-mak·ing n. High-level development of policy, especially official government policy. adj. Of, relating to, or involving the making of high-level policy: , in decision making," then the principal purpose of having associate members will not be to generate unrelated business income, and associate member dues will not be taxed. If, however, the IRS determines that the principal purpose for having supplier members, for instance, is merely to raise additional revenue - and there is not the requisite level of involvement - then their dues will be taxable. ASAE position: Only associations, not the government, should have the power to determine who is and who is not a bona fide [Latin, In good faith.] Honest; genuine; actual; authentic; acting without the intention of defrauding. A bona fide purchaser is one who purchases property for a valuable consideration that is inducement for entering into a contract and without suspicion of being member. Volunteer protection Many nonprofit organizations have experienced a decline in the number of people volunteering their services, because potential volunteers perceive lawsuits as a serious threat. The Volunteer Protection Act of 1995 would encourage states to enact legislation to provide protection from litigation to volunteers, acting in good faith, who donate their time to thousands of nonprofit organizations. A companion bill in the Senate would provide for volunteer protection at the federal level. ASAE position: This legislation has been supported by ASAE during the last five congressional sessions. ASAE is a leader of the National Coalition for Volunteer Protection. Nonprofit mail The U.S. Postal Service The U.S. Postal Service (USPS) processes and delivers mail to individuals and businesses within the United States. The service seeks to improve its performance through the development of efficient mail-handling systems and operates its own planning and engineering programs. finalized its long-awaited version of eligibility restrictions on nonprofit third-class mail Noun 1. third-class mail - mail consisting of printed matter qualifying for reduced postal rates third class mail - the bags of letters and packages that are transported by the postal service . The final rule went into effect October 1, 1995, concurrent with the Step 3 nonprofit rate increase. To be eligible for discounted rates, publications must consist of at least 25 percent nonadvertising matter; have a title on the front cover in a distinguishable style and size; be formed on printed sheets; and contain an identification statement on one of the first five pages that includes the title; the issue date; the frequency; the name and address of the nonprofit organization; the issue number; an ISSN ISSN abbr. International Standard Serial Number or USPS (1) (Uninterruptible Switching Power Supply) A power supply for a computer that contains its own battery and uninterruptible power supply (UPS) circuitry. See power supply and UPS. number, if applicable; and the subscription price, if applicable. Prohibitions on advertising travel, insurance, and financial offers continue to apply to publications. RELATED ARTICLE: Legislative Updates For further details on any ASAE Government Affairs issues, please contact the American Society of Association Executives Government Affairs Division, 1575 I Street, N.W., 12th Floor, Washington, D.C, 20005. Phone: (202) 626-2703. Fax: (202) 371-1673. Internet e-mail: gov@asae.asaenet.org. More extensive written issues updates are available through the government affairs section on the ASAE home page, http://www.asaenet.org, or through ASAE's fax-on-demand service. For fax-on-demand documents, ASAE members may call (800) 622-ASAE. Callers are advised to follow the voice prompts and have their six-digit member number and document numbers available. The following government affairs documents are available on ASAE's fax-on-demand service: * "Association Health Care Plans" 30301 * "Campaign Finance Reform and Political Action Committees" 30202 * "Cosponsors Fairness in Musical Licensing Act of 1995" 31003 * "Cosponsors Volunteer Protection Act of 1995" 30902 * "FEC Member Ruling Request by ASAE" 30203 * "House and Senate Judiciary Committees The U.S. Senate established the Committee on the Judiciary on December 10, 1816, as one of the original 11 standing committees. It is also one of the most powerful committees in Congress; among its wide range of jurisdictions is investigation of federal judicial nominees and oversight of " 31002 * "H.R. 789, Fairness in Musical Licensing Act" 31789 * "IRS Guidance for Charitable Donations" 30104 * "IRS Rules on Associate Member Dues" 30103 * "Lobbying Disclosure Act" 30201 * "Lobbying Tax Law and Associations" 30001 * "Music Licensing Issue Paper" 31001 * "National Coalition Volunteer Protection Sign-Up Form 30903 * "New Lobby Tax Rules" 30002 * "Nonprofit Postal Rates" 30601 * "Nonprofit Sanctions Legislation" 30701 * "Postmasters Associate Member Dues Case" 30105 * "Spouse Travel, Business Meals, & Club Dues: New IRS Rules" 30501 * "UBIT: Taxing Associate Member Dues" 30101 * "UBIT: Corporate Sponsorships" 30102 * "Volunteer Protection Legislation" 30901 * "What is ASAE's Political Action Committee (A*PAC)?" 35001 * "What is the Association Alliance?" 38001 * "401(k) Reinstatement for 501(c)s" 30401 Robert S. Boege is vice president, government affairs, American Society of Association Executives, Washington, D.C. |
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