The Catholic University of America

CUA Law Professor Roger Colinvaux wrote a letter on tax reform with Boston College Law Professor Ray Madoff to Senator Hatch, Chairman of the Senate Finance Committee. The letter was in response to Senator Hatch's call for comments from stakeholders on tax reform. This letter was published in Tax Notes Magazine (2017 TNT 145-9) and mentioned in the Chronicle of Philanthropy.  See below
 

Nonprofit Leaders Making Their Voices Heard on Tax Issues


From: The Chronicle of Philanthropy
Date: August 8, 2017
By: Alex Daniels

When lawmakers return to Washington next month, many charity policy experts believe they will incorporate into current deliberations aspects of the last effort at a major tax overhaul. That attempt, a bill drafted three years ago by then House Ways and Means Chairman David Camp, contained many provisions hotly debated by charities, including a cap on executive compensation, restrictions on how to value appreciated assets donated to charity, and a requirement that donor-advised-fund account holders direct their money to charity within five years.

If Congress turns to Mr. Camp’s draft, two law professors who have pushed for a donor-advised-fund payout requirement, Ray Madoff of Boston College and Roger Colinvaux of the Catholic University of America, see an opportunity to press their point.

In a letter last month to Sen. Orrin Hatch, the Utah Republican who chairs the Senate Finance Committee, Ms. Madoff and Mr. Colinvaux wrote that the failure of donor-advised funds to spur more giving suggests people are stockpiling assets in their accounts rather than directing them to charity. They noted that even as the funds have grown rapidly ­and are now worth some $80 billion, according to some estimates, the overall giving rate in America has not budged beyond 2 percent of disposable income.

"Given the substantial sums flowing into DAFs, the significant tax benefits allowed for these contributions, and the ultimate purpose of charitable tax benefits to get money to organizations engaged in charitable work, we believe that Congress should impose a maximum time period," Mr. Colinvaux and Ms. Madoff wrote. The two professors did not call for a specific time limit, but suggested that 10 years would be 'reasonable.'

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Roger Colinvaux  

Professor Roger Colinvaux's
Areas of Expertise

Tax-Exempt Organizations

Charitable Deduction

Political Activities of Nonprofits

For additional information about our professors' areas of speciality, see Professor Colinvaux's faculty page.