Kyle Penney

Unless you live under a rock I’m sure you are aware that there is a significant election taking place on Tuesday, Nov. 5.

You can’t turn the corner, turn on the television, or pick up a paper or phone without hearing candidates try to make their final case for support. Candidates at all levels are working so hard to set themselves apart from one another with emotional ads, it is hard to imagine how either side could be so perfect or awful.

It’s getting hard to find the truth in all the rhetoric coming from both sides. I wish campaigning candidates would receive an electric shock if they have trouble telling the truth. I think it would really tone down the rhetoric, and force candidates to explain how their policies would work to make life better for their constituents. In the absence of shock treatments, we are left to listen carefully and try to find the truth amid the vitriol.

When the outcome of any election is finally determined, we are all left to get along together. The good news, and some would say the bad news, is that our federal representative republic form of government is designed to be difficult to change. It typically requires significant compromise and cooperation to get a policy passed by both chambers of Congress and signed into law by the President. Even then, if the policy is too extreme it can be challenged in the courts, and ultimately deemed unconstitutional and void.

Philanthropy plays an important role in trying to develop policies to address various issues in society. From taxes and healthcare to housing and the environment, philanthropic organizations are constantly working on polices which impact our lives.

How exactly does philanthropy affect policy? The federal government has many departments and agencies that gather information and compile statistics, but the data doesn’t explain itself. Many philanthropic organizations use that data to understand the effect of policies on the work they do and the people they serve. Nonprofit medical clinics, for example could be positively or negatively affected by healthcare policies. These clinics and other public charities which support them spend time analyzing data, measuring the effectiveness of programs, and suggesting policy changes to improve outcomes and use limited federal resources as efficiently as possible. When accurate and timely data is not available, public charities can invest in research to get better data and share that knowledge with policymakers.

Is there always unanimous support for policy changes? Of course not, and that is why there are usually groups on either side of an issue, studying programs and “lobbying” for changes that would advance their perspective on improving people’s lives.

Policy work takes place year around, regardless of which party is in power. The federal government is a massive and complex system and polices are created and implemented regularly, even when our members of Congress and the President are away from Washington campaigning.

As an example, East Texas Communities Foundation and many other public charities administer charitable funds known as donor-advised funds (DAFs). A law was passed in August 2006 setting new rules and definitions for DAFS. Eleven years after the passage of the DAF bill, the Treasury proposed regulations in 2017 interpreting the 2006 law and imposing new rules affecting how DAFs can operate. In 2023, more rules were proposed by Treasury also affecting DAFs, as a result of the same law passed seventeen years earlier. ETCF and our colleagues administering DAFs have been working for many years to inform regulators and legislators about the impact of these laws and regulations, especially when they could negatively impact charitable giving.

The outcome of the 2024 election will undoubtedly affect philanthropy. Several items which both encourage and discourage charitable giving will automatically expire in 2025. Leadership in both chambers of Congress and the White House will necessarily have to address those issues with either action or inaction next year. The new Congress and President will set the tone and direction of legislation and regulations for at least the next two years. As you support various charities which serve others and promote your view of a fair and compassionate society, consider the work they do and the policies which are needed to achieve their mission.

Voting for candidates that share your view of the world, writing or calling members of Congress to support a bill, and giving to public charities which are actively engaged in public policy work may be your next best opportunities to give well.