Foundation Participates in Foundations on the Hill; TANF Makes for Key Talking Point

March 22, 2010

The Sisters of Charity Foundation of South Carolina, The Duke Endowment, The Spartanburg County Foundation and The Springs Close Foundation participated in Foundations on the Hill, sponsored by the Council on Foundations and the Forum of Regional Associations of Grantmakers, March 16-17, 2010. They met with staff for Congressmen Clyburn (D-SC6) and Wilson (R-SC2) and Senators DeMint (R-SC) and Graham (R-SC). They also met directly with Congressman Inglis (R-SC4) and Congressman Spratt (D-SC5).

The visit reminded members of Congress about the foundation’s work throughout the state, and also raised several policy issues that affect philanthropy.

Temporary Assistance for Needy Families (TANF) was a key talking point in the Wednesday visits. The importance of TANF funding to the state was discussed and the Sisters of Charity Foundation of South Carolina asked members to reauthorize TANF, and once this occurs to change the funding distribution formula to one that is based on a state’s need. Understanding TANF reauthorization may likely be pushed back a year, to 2011, the Foundation communicated a more immediate and pressing need, that of the TANF Contingency Fund.  

When TANF replaced the old Aid to Families with Dependent Children (AFDC) program in 1996, Congress appropriated $2.5 billion to a TANF Contingency Fund. Congress created this fund to accommodate states’ increased caseload during a major economic downturn.  In order to access this fund states had to have had an increase in needy families in the state as measured by families receiving food stamps (more than 10 percent increase for the same period in the prior year). The state was also required to invest additional state dollars on needy families. For the past eight years, South Carolina was able to draw down $20 million from this fund. Beginning with the economic downturn in 2008, many other states qualified for the fund and the fund was completely depleted in 2009.

Last year, the American Recovery and Reinvestment Act of 2009 (ARRA) created a new Emergency Fund under the Temporary Assistance for Needy Families (TANF) block grant. Congress provided $5 billion for the Emergency Fund in ARRA. However, this Emergency Fund is set to expire on September 30, 2010.

The Foundation pointed out that there is an immediate need for Congress to replenish the original TANF Contingency Fund or extend the TANF Emergency Fund. As advocates for the underserved in South Carolina, the Sisters of Charity Foundation offered to work with members to figure out how to get this much needed funding to South Carolina and all southern states.

Other talking points during the meetings included requesting support for legislation to simplify the management of the excise tax to a flat, revenue neutral, excise tax that will provide foundations with additional grantmaking resources; support for support of the Public Good IRA Rollover Act of 2009, which would permanently extend the charitable IRA rollover incentive, eliminate the $100,000 cap on rollovers, allow donors to make rollovers beginning at age 59 ½ and permit rollovers to donor-advised funds, supporting organizations and private foundations; and requests were made for members to join the Congressional Philanthropy Caucus.  Both Representative Joe Wilson and Representative Bob Inglis currently support philanthropic sector as members of the Congressional Philanthropy Caucus and Representative John Spratt agreed to join.

The Sisters of Charity Foundation of South Carolina is looking forward to continuing to work with local, state and federal elected officials as it carries out its mission so that families in South Carolina have the resources to live out of poverty.

Pictured: Angie McCrae, president of The Springs Close Foundation; Mary Thomas, executive vice president of The Spartanburg County Foundation; and Brooke Bailey, director of communications and public policy of Sisters of Charity Foundation of South Carolina, in front of the U.S. Capital.

Pictured: Brooke Bailey, director of communications and public policy of Sisters of Charity Foundation of South Carolina; Mary Thomas, executive vice president of The Spartanburg County Foundation; Congressman Bob Inglis (SC -4th district); Angie McCrae, president of The Springs Close Foundation; and Gene Cochrane, president of The Duke Endowment

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