About the Enclosed Op-Ed Article
Dear Mr. Taranto:
This article addresses the timely matter of the ever-escalating Federal debt in America and a proposed solution that’s been sitting there right before our eyes.
Authors: Lesley Winston, Chartered Advisor in Philanthropy
Day and night phones: 305.773.5167
John Capurso, Consultant to NGOs for 5 decades
Day and night phones: 305.450.2508
Sustainable Funding for NGOs, and it’s Not from Government
Governments supporting Non-Governmental Organizations is expensive politics and bad economics. America is now $30 trillion in Federal debt, causing many problems in America. At the top are inflation, greater interest payments, tax hikes, spending cuts, and a decreased ability to respond to crises. It seems that at any governmental level, the increase in debt is related to deficit spending. Government grants of tax dollars to support non-governmental organizations they were not mandated to support, is inefficient, inappropriate, and it adds to deficit spending. In particular, the Federal government should adhere to its constitutionally mandated powers and not try to solve the social problems of America’s greater community.
To some, this might seem to be anti-NGO. It’s not. Rather, it is pro-NGO. Increasingly, over the years, NGOs have tended to rely more on grants from Federal, state, and local governments. Unfortunately, these sources of funding are less reliable than an endowment, leaving NGOs incapable of accurately budgeting and not knowing if their programs and services can continue to meet the needs of Americans.
Here’s what’s really ironic. There is a solution that was enacted by Congress in 1969 and is cited an Section 664 of the Internal Revenue Code of the United States. Over fifty years ago, this solution was intended to create endowment to be the source of sustainable funding for NGOs today. Unfortunately, it never worked that way. That is because Americans know little about Section 664. Other laws enacted by Congress, Section 401K and Section 529, are widely known and used. Almost every American knows about 401K. A lot of Americans know about 529 plans. So why not Section 664?
Endow America Network Foundation, a 501(c)(3) organization, represented by Mr. Lesley Winston, chairman and president and Mr. John Capurso, executive director, believes there are at least three reasons why Americans don’t use Section 664 as they do Sections 401k and 529:
- Section 664 has been grossly under promoted and remains little known and understood by Americans.
- There are not enough professional advisors qualified to properly implement this section of the code for the benefit of Americans, and
- There have been no real proponents to bring Section 664 to the attention of Americans.
In fact, it is these three reasons that gave rise to the Endow America Network Foundation and the Council of Professional Philanthropic Advisors.
An important purpose of the Endow America Network Foundation is to increase the public’s understanding and use of Section 664. To this end, the foundation created the name Social Secharity, which blends Social Security and charity and defines Section 664 and other similar sections of the Internal Revenue Code. The foundation is committed to making Section 664 and Social Secharity as well known to and accepted by Americans as 401k and 529. For more information go to; www.socialsecharity.org
