Current Issues

These are the Current Issues facing our sector today. To find out how we're addressing them, follow our ACTION Blog.

Aerospace

The aerospace industry affects all Washington businesses (for and non-profit). The aerospace sector includes 650 companies, which directly and indirectly support more than 209,000 jobs. These companies, located throughout Washington, provide support to the nonprofit community through direct contributions, sponsorships, and volunteers. In 2008, the aerospace industry gave more than $50 million to Washington communities and nonprofits. EA supports the Washington Aerospace Partnership and their initiatives to strengthen this sector. Learn more, visit Washington Aerospace Partnership.

The Budget

On Wednesday, December 9th Governor Gregoire presented several cuts to the State budget to cover the $2.6 billion deficit. Although in an open letter to Washingtonians the Governor said she can't let those deep spending cuts stand, and promises to buy back $700,000 of these cuts through increasing revenues - though she didn't detail specific taxes. If implemented, the cuts the Governor enumerated will result in nearly $100 million in lost funding for the nonprofit sector. Services for people with disabilities would be especially hard-hit.

Health Care

The Senate continues debate over the health care bill (H.R. 3590) unveiled November 18th.  Included in the bill is a plan in which nonprofit employers would receive a subsidy of up to 35% of their contributions to employee health premiums. For-profit employers would receive a 50% subsidy. The House bill on health care (H.R. 3962) includes a health care coverage credit for small, for-profit businesses; however this advantage has not been extended to small, nonprofit employers.

Both bills stipulate:

• A credit to for-profit businesses of up to 50% of premium costs
• The credit phases out as firm size and average wages increase
• Employers with 25 or fewer workers and average wages of $40,000 or less qualify (In the House bill the credit would not be allowed for employees earning more than $80,000 a year)

Estate Tax Reform

On December 3, 2009, the House of Representatives passed legislation to extend the estate tax permanently at 2009 levels. If the Senate does not follow suit before the fast-approaching congressional recess, the IRA charitable rollover will expire on December 31, 2009. The Estate Tax is a critical incentive for people of great wealth to give back through their estates to support the work of charitable organizations. The estate tax is the most progressive tax and even at 2009 levels, only one in every 500 estates across the country owes tax. Without action, the Estate Tax will expire in 2010 and reappear in 2011 under its 2001 parameters, with a $1 million exemption and a 55% rate on the largest estates.  If the estate tax is repealed, it would result in the loss of over $1 trillion in tax revenues for federal government over the next ten years. Encourage your Senators to support the estate tax.  

IRA Charitable Rollover

Next week, the House is expected to take up a bill to extend expiring tax provisions, including the IRA rollover and incentives for giving food, conservation easements, books, and computers to nonprofits. The package of 45 individual, business, and charitable incentives, collectively known as "extenders" will likely continue current law through 2010 at a cost of around $30 billion.The Public Good IRA Rollover Act of 2009 (HR 1250/S.864) builds on the success of current law by making the giving incentive permanent, removing the current dollar limit on donations per year, making all charities eligible to receive donations, and providing IRA owners with a planned giving option starting at age 59½.  Encourage your representatives to prevent the IRA Charitable Rollover from expiring on December 31, 2009 and support HR 1250/S.964.