Brattleboro Citizens’ Breakfast Invitation
Municipal Philanthropy *
changing the taxation paradigm
* philanthropy – the disposition or active effort to promote the happiness and well-being of others; practical benevolence, now esp. as expressed by the generous donation of money to good causes. O.E.D.
The next Brattleboro Citizens’ Breakfast is planned for Friday, April 17, 2015 at the Gibson Aiken Center, downstairs, hosted by Senior Meals. Doors open at 7:30am.
Chris Chapman, employee-owner of the the Trust Company of Vermont and former Brattleboro Selectboard member will speak on “Municipal Philanthropy.”
Chris seeks to “change the paradigm of taxation, which currently holds that people pay as little as possible to their municipalities, in accordance with the demonization of government that has come to the fore over the past century, and in accordance with a very human resistance to being told what to do under penalty for not obeying an authority’s order – in this case, to pay taxes on one’s property. I believe that a change to the paradigm is in order and doable, but it begins as a leadership issue. . . . This is our town, and the amazing (and heartening) extent of voluntarism we have here exemplifies how deep the commitment by people across the economic spectrum is. From it, I infer that lots of people would give something extra toward the needs we can’t afford because of the limit we must place on how much we can tax.”
=> Because we need to plan for the number of people having breakfast, please RSVP by no later than Tuesday, April 14 by replying to Robt.Oeser@gmail.com (or calling 518-505-9031)
=> The breakfast, provided by Senior Meals will feature waffles. Cost is $6.00 for those under 60 years of age. ($3.50 is the suggested donation for those over 60 years.)
=> Brattleboro Time Traders may use one time credit hour to attend the breakfast, hosted by Brattleboro Senior Meals (Meals on Wheels).
Upcoming:
Protect Yourself and Fight Healthcare Fraud – Wed., April 22, 2015 – 10:30am – 11:30am – at the Brattleboro Senior Center – details at this link
Menu
The breakfast is actually going to be scrambled eggs with boursin.
Good spirit, but shouldn't be town-run
“This is our town, and the amazing (and heartening) extent of voluntarism we have here exemplifies how deep the commitment by people across the economic spectrum is. From it, I infer that lots of people would give something extra toward the needs we can’t afford because of the limit we must place on how much we can tax.””
I’m not sure that’s the right conclusion to draw. People give their time generously because they have it to give. It might follow that if they had extra money they’d already be giving it. In other words, the number of people giving of their extra money right now is equal to the number of people who have it to give.
The limit on how much we can tax is not what is holding back the piles of gold for civic projects. Income is.
I agree there could be a renewed spirit of giving and civic pride – but from the wealthiest members of our community. Most everyone else is struggling. This fund has been proposed for a while now, but no action has been taken, as far as I can tell, by anyone to actually start a fund and attempt to raise significant amounts from the presumed donors.
Individuals and organizations can always raise money for good causes. Municipalities are specific corporations that can raise money by taxation. I’m pretty sure laws keep the two apart.
Needs research?
While not presuming to fully understand Chris’ proposal, I think it is clearly intended to attract donations from those who would otherwise pay taxes, and whose liability exceeds the standard deduction, induced by the ability to “target” a portion of those taxes toward specific public projects. That begs the question who the donors might be.
There is also some movement in the General Assembly to limit exemptions to 2 1/2 times the standard deduction, which might seem to run counter to such a proposal:
http://legislature.vermont.gov/bill/status/2016/S.64
http://digital.vpr.net/post/speaker-smith-supports-plan-cap-deductions-raise-35-million
As to the law on “charitable contributions” there is less doubt; the IRS states:
You may deduct a charitable contribution made to, or for the use of, any of the following organizations that otherwise are qualified under section 170(c) of the Internal Revenue Code:
1. A state or United States possession (or political subdivision thereof), . . . if made exclusively for public purposes; . . .
http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Charitable-Contribution-Deductions
Neighbors
In 2001, New York State looked into this issue, too.
They and their Attorney General feel that while municipalities can collect donations and gifts from the public, they should NOT be in the business of soliciting for those gifts. New York says it is not a municipal function to solicit for gifts and fundraising. “Since a municipality cannot solicit funds, neither can it authorize its committees to solicit funds.” Instead, they suggest that private individuals or an outside entity do the work of solicitation.
Also, adding this function to town government will, by its nature, make government bigger and more costly.
I think the answer is much easier than involving the town. Just start a private community organization like others do, and get in line for donations. Over a year of fundraising has been missed since this idea emerged. : )
Not arguing merits ....
Do you have further info on the NY AG Opinion? My search fails to reveal an opinion on point in 2001. http://www.ag.ny.gov/appeals-and-opinions/numerical-index#2001
In 2014, the AG did opine that the Metroploitan Transportation Authority was not eligible to solicit funds, apparently because it was deemed a creature of statute. cf: http://www.ag.ny.gov/sites/default/files/opinion/2014-f2_pw_0.pdf
Response from Chris Chapman
The following is posted on behalf of and at the request of Chris Chapman:
Responding to posts by Chris Grotke and Bob Oeser:
· I agree with Mr. Grotke in his appraisal that many people in town don’t have “lots of money” to contribute to the town in excess of their property tax obligations. Where I disagree is in his assessment. I believe there are so many people in town who want the same things as the rest of the community that income levels are not where the distinction will lie between giving and not giving. Ask any non-profit in Brattleboro about how big its average gift is. My bet, speaking as someone who has sat on a number of boards or their development committees: the distribution of wealth, not the distinction of wealth, would be a predictor of gift size. Most non-profits see a few scale-tipping contributions, but most annual gifts are much, much smaller – and much, much more predictable. My bottom-line thesis is that the town merely needs to state that it welcomes additional contributions in order to see a great deal of untapped generosity flow over time land at the municipal building. I’m thinking of the widow’s mite as well as the rich person’s strategic gift.
· It’s the mission that attracts contributions, not the tax benefit. People give because they have particular affection for one cause or another. Tax breaks help, but they are not primary motivators. Andrew Carnegie didn’t fund a nation full of libraries for the tax deduction, and Jane Addams didn’t establish the ground-breaking Hull House in Chicago for tax purposes. Michael Bloomberg didn’t give $1 billion over time to Johns Hopkins University in order to shelter his estate from taxation. And I doubt Robert Reid gave $5.8 million for the library and hospital simply to avoid federal and state estate taxes. Something much deeper was at work in all of them motivating them to turn their talents, or wealth, or both to serving society.
· Since my first encounter with the Selectboard on the idea of municipal philanthropy a year ago last week, I have backed away from suggesting hiring a development officer for the town. Frankly, the matter is so simple that such a position is unnecessary. There is already a very strong cultural current of generosity at work in our society – the most generous in the history of civilization, for a variety of reasons – and such good accounting and accountability within existing town government that there is no need to add to the local governmental infrastructure. The argument about the appropriateness of a development effort should therefore be put aside; it’s a straw man at this point. So, therefore, is the General Assembly’s tinkering with deduction limits.
· Mr. Grotke is indeed correct that there has not been any action taken by “anyone” to actually start a fund and attempt to raise significant amounts from the presumed donors. There are a couple of reasons for that:
o Principally, it is because the Selectboard has voted 3-2 simply not to discuss the matter. The chair of the board has been quoted as saying he does not want to entertain “a spectacle” on the matter. He has also declined even to sit down and discuss it face to face outside of Selectboard meetings, no reason given. (I feel a little like Galileo, who couldn’t convince the ecclesiastical authorities even to look through his telescope.)
o There is no need to start a fund of some sort unless doing so is a fund-raising strategy for a particular project, as was the case with the successful Friends of the West River Park. General contributions can be made simply by writing checks to the Town of Brattleboro or by transferring investment assets to the town’s existing brokerage account. I have been advised by supportive well-wishers that it would be easier to create a special municipal fund to take in contributions. That’s true enough. However, that strategy pales in its potential to that of simply welcoming additional contributions. The idea is to get beyond the adversarial paradigm of taxation as the only means of raising municipal money. That strategy, given the town’s long history of major, unsolicited contributions, has much, much greater potential.
· I will have more to say on Friday about how important this matter is to our town and many others like it statewide, regionally, and perhaps nationally, as a strategy to overcome what is an increasingly heavy weight on municipalities nearly everywhere. Anyone who wishes to attend the breakfast should contact Bob Oeser for the sake of planning for food and to ensure adequate seating. He can be contacted at Robt.Oeser@Gmail.com.
Chris Chapman
Unfortunately, Mr. Chapman -
Unfortunately, Mr. Chapman – the response – or lack thereof – that you received from the SelectBoard in general and the chair in particular- is not a rarity in this town. Public input and independent thoughts or ideas are seldom welcome in that hallowed room.