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Nonprofit head believes Dems will be easier on tax-exempts
Saturday, March 24, 2007

National nonprofit leader Diana Aviv does not believe Democrats will go after tax-exempt organizations the way Republicans did while in control of Congress.

Large-scale reform of charities and foundations "is not a priority" of the new Democratic majority, the chief executive officer of Washington, D.C.-based Independent Sector said yesterday at Downtown nonprofit symposium hosted by local nonprofit consulting firm Dewey & Kaye. Her group, which represents 575 nonprofit organizations across the United States, is chaired by The Pittsburgh Foundation's Bill Trueheart.

The governance and management of nonprofit organizations became a national issue a few years ago following mismanagement at the American Red Cross, the United Way and the J. Paul Getty Trust in Los Angeles.

U.S. Sen. Charles Grassley, R-Iowa, led the charge for more aggressive reform and oversight of the nation's nonprofit sector. Just last year, he criticized The Smithsonian in Washington, D.C., for awarding several people salaries higher than the $400,000 made by U.S. presidents.

The CEO was paid more than $915,000, with use of a private jet, private car service and catered meals.

But Sen. Grassley is no longer chair of the Senate Finance Committee, and while he "made it clear he is not done with his work," Ms. Aviv no longer expects talk of comprehensive reforms. It is "unlikely" that there will be a "massive movement" toward more regulation in Congress, she said. Instead, she expects "bits and pieces" from Congress.

As a way of responding to the concerns of Sen. Grassley, Ms. Aviv and the Independent Sector convened nonprofit leaders from around the country in 2004 and produced in 2005 and 2006 a series of reforms designed to encourage good governance, ethical conduct and effective practices at charities and foundations.

She expects to produce more recommendations this year, focusing on financial reporting standards. One solution is to make electronic filing of nonprofit financial forms mandatory so citizens can access them online.

First published on March 24, 2007 at 12:00 am
Dan Fitzpatrick can be reached at dfitzpatrick@post-gazette.com or 412-263-1752.