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AFP Actively Participates in a Nonprofit Panel Responding to the U.S. Senate Finance Committee's Roundtable Discussion

February 28, 2005

(Feb. 28, 2005) As previously reported, the U.S. Senate Finance Committee issued a draft discussion paper in June, 2004 that contained several proposals intended to  improve the regulation of the charitable sector.  AFP President and CEO Paulette Maehara testified before the Committee on behalf of the association during a July hearing and addressed in detail the issues raised by the discussion paper. Ms. Maehara suggested to the Committee that the single most effective means of decreasing abuses in the nonprofit sector could be outlawing percentage-based compensation for fundraising activities.

 A brief article about AFP's participation at that hearing and copies of AFP's oral and written comments can be found at:

 /Audiences/PublicPolicyIssueDetail.cfm?ItemNumber=1302

 In response to the Senate Finance Committee's draft discussion paper, members of the charitable sector formed the Panel on the Nonprofit Sector and related work groups.  The Panel was formed to consider and recommend legislative and regulatory actions to the Senate Finance Committee.  AFP joined the Panel as a member of the Oversight and Self-Regulation Work Group.

 For more information, please refer to:

 /Audiences/NewsReleaseList.cfm

 The Panel's work has been broken into two Phases.  Phase I recommendations will be submitted to the Senate Finance Committee soon.  Phase II recommendations are slated to be presented in May 2005. 

 The five work groups have completed their Phase 1 recommendations, and the overall Panel currently is reviewing those recommendations.  AFP has independently analyzed those recommendations, and for those recommendations that raised concerns, AFP submitted comments and its own recommendations to the Panel in an effort to address those concerns.  Due to a confidentiality agreement, AFP can not publicly publish its comments and recommendations at this time.

 However, the recommendations and related information are available for review and public comment at:

 www.nonprofitpanel.org

AFP will continue to actively engage the Panel and endeavor to ensure that any recommendations presented by the Panel are balanced and not burdensome to the charitable sector.

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