This information is probably of most interest to executive
directors, trustees, and development directors.

1)  The President has signed a bill that contains "intermediate
sanctions" and increased disclosure rules for charities.

Under the new disclosure rules, a charity must make a copy of its Form
990 (IRS information return) available to anyone who requests it in
writing.  Previously, the request had to be made in person.

The intermediate sanctions give the IRS authority to levy penalties
against individuals who profit improperly from a charity that they
influence.  You can think of this as the United Way provisions.

Contact me if you want copies of either of the above.  Or you can find it
yourself on the Web at the Thomas legislative service of the Library of
Congress -- www.loc.gov.  The bill number is HR 2337 -- you'll want the
version "signed by the President" and then you need Section XIII of the bill.

2)  The President is about to sign a bill containing two provisions of
some interest to museums.

The first restores full-value deductibility of gifts of appreciated stock
to private foundations.  Basically, this allows rich people to channel
gifts through an intermediary rather than making the gift directly, or,
more important, not making the gift at all.  Our view is that what's good
for foundations is good for museums, so we're happy.

The second restores in modified form the provision that allows employees
to exclude employer-provided tuition benefits from their taxable income.

Again, please contact me if you want copies. PS I won't be here next week.

Andy Finch
AAM Government Affairs
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