Gerry Higgins has some simple advice to government leaders who want to invest money in groups that use business models to advance social causes, or “social enterprises” — place your bets on existing groups rather than on startups.

The chief executive of CEIS, a Scottish group that provides money and services to more than 100 socially oriented businesses in the United Kingdom, said in an interview with The Chronicle that start-up efforts that rely on government money are significantly less likely to succeed when compared with existing groups that have already proven that they can make money.

Mr. Higgins, whose group organized the first Social Enterprise World Forum last fall in Edinburgh, is in the country to attend this week’s Social Enterprise Summit in New Orleans. In his interview, he discussed his organization and what lessons United States lawmakers can learn from his work in...

Rep. Roy Blunt said he plans to lead an effort to oppose President Obama’s plan to limit the amount of money wealthy donors can deduct from their federal taxes for charitable contributions.

Mr. Blunt, a Missouri Republican, said he is calling on House Speaker Nancy Pelosi, a Democrat, to engage in a bipartisan effort against the proposal.

“This is a tax increase and it’s being levied at a time when contributions are sorely needed but at an all-time low,” Mr. Blunt said in a letter to Ms. Pelosi. “I am puzzled why this President — who has frequently called upon Americans to take responsibility for building their communities and institutions — would hinder many Americans from continuing to contribute voluntarily to our nation’s charitable organizations.”

The leaders of the Senate’s powerful Finance Committee aren’t offering much praise for President Obama’s plan to limit how much wealthy donors can deduct from their federal taxes for charitable gifts.

Sen. Charles Grassley of Iowa, the senior Republican member of the committee, said in a statement today that the plan would probably hurt the nonprofit world.

But Mr. Grassley, who has been an advocate for tightening tax regulations for nonprofit groups, stopped short of offering a clear prediction about what Mr. Obama’s plan might mean.

“Calculating the new deduction would be so complex that the impact on giving is difficult to determine, but given the economic crisis and the important role charities play in responding to the crisis, any proposal that might reduce charitable contributions seems counterproductive,” Mr. Grassley said.

Max Baucus, chairman of the committee,...

The top executives at Independent Sector and the Council on Foundations are the latest voices in the chorus of advocates who say President Obama’s tax plan would hamper giving to nonprofit groups and foundations.

“We are opposed to proposals which will significantly depress incentives for charitable giving,” said Steve Gunderson, president and chief executive of the Council on Foundations, an organization that represents grant makers. “In these hard economic times, we need to make sure tax and regulatory policy encourage growth in philanthropy.”

Independent Sector, a coalition of major charities and foundations, said in a statement that the plan would encourage some donors to “cap their gifts.”

“This could be a problem for many struggling nonprofits vital to our communities that are already facing a very difficult fund raising environment,” the organization said.

President Barack Obama’s plan to decrease the amount of money wealthy taxpayers can deduct from their tax returns for charitable donations would be “another nail in the coffin” for nonprofit groups, according to one prominent observer.

Sheldon Steinbach, a lawyer in Washington who represents colleges and universities, said the proposal comes at a time when many nonprofit groups are already facing decreased resources. As a result, the plan could have drastic consequences for many groups.

“Any disincentive to charitable giving, especially in the current economic climate, will have an impact far beyond the black letter law,” Mr. Steinbach said. “It will have an exponentially negative impact.”

According to news reports, the president is calling for a cap on itemized tax deductions for Americans who earn more than $250,000 annually.

Such a move would reduce the value of tax...

The Internal Revenue Service has released a series of new podcasts to help charities, businesses, and individuals during the 2009 tax filing season.

In one podcast, Steve Miller, the commissioner of the IRS’s Tax-Exempt/Government Entities division, offers nonprofit officials information about the agency’s rules on political activities by nonprofit organizations.

The three-minute, 30 second audio segment comes as part of a larger effort by the agency to teach nonprofit groups about the rules that prohibit political activities by tax-exempt organizations.

Many people in the nonprofit world plan to travel to Washington next week to call attention to their causes as Barack Obama is inaugurated to the presidency.

To document what charity and foundation workers are doing, both in Washington and elsewhere, we have created an easy way for readers to share photographs and videos of events related to the inauguration.

To participate, join the The Chronicle of Philanthropy group on the photo-sharing site Flickr.com and upload your photos and videos.

We also welcome news about what your organization is doing as the new president takes office. To share your thoughts, e-mail us.

Congress should allow the Secretary of Treasury to adjust the tax deduction rate for volunteers who use their own vehicles for volunteer work, the national taxpayer advocate told Congress this week.

Nina E. Olson, the taxpayer advocate, said in her annual report to Congress that the Internal Revenue Service has the authority to amend the deduction rates for business-related travel to adjust for inflation.

The rate for volunteers, however, remains fixed in the tax code.

As a result, volunteers are eligible for a deduction of 14 cents per mile driven, while taxpayers can deduct 55 cents per mile for business-related travel.

Ms. Olson, who operates independently of other IRS offices and reports to Congress, also criticized the IRS’s tax-exempt division for relying too heavily on its Web site to communicate with charities and other tax-exempt organizations.

The IRS has, in the...

The National Council of Nonprofits, in Washington, today asked President-elect Barack Obama’s transition team to take steps to help nonprofit organizations weather the widening recession.

The organization, which worked during the 2008 campaign to push the major-party candidates to discuss key nonprofit issues, said today that the recession has pushed many charities to the brink of extinction at a time when they are most needed.

As a result, the group has recommended the new administration:

• Create a proposed Social Entrepreneurship Agency for Nonprofits.

• Provide budget relief for state and local governments to prevent state and local budget cuts that would hurt nonprofit organizations.

• Start a Community Services Protection Fund that would provide money to nonprofit organizations that are performing services that have traditionally been performed or paid for by the ...

People who drive their own vehicles as part of their volunteer work for charities will not be getting any extra tax incentives for their efforts in 2009.

The Internal Revenue Service, in its newly released list of 2009 standard mileage rates, said volunteers could take a deduction of 14 cents a mile on their federal taxes.

The rate is fixed by law. Congress had been considering legislation that would have increased the rate to compensate for increases in fuel prices.

But those efforts have stalled.

According to the IRS, taxpayers are eligible to deduct 55 cents per mile for business miles driven and 24 cents per mile driven for medical or moving purposes.

Do you think Congress should increase the mileage rate for charity volunteers? Click on the comments link below this post to share your thoughts.