[Congressional Record Volume 141, Number 189 (Wednesday, November 29, 1995)]
[Senate]
[Page S17828]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      PHILANTHROPY PROTECTION ACT

  Mr. LOTT. Madam President, I ask unanimous consent the Senate proceed 
to the immediate consideration of H.R. 2519, just received from the 
House.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (H.R. 2519) to facilitate contributions to 
     charitable organizations by codifying certain exemptions from 
     the Federal securities laws, and for other purposes.

  The Senate proceeded to consider the bill.
  Mr. PRESSLER. Madam President, I am pleased that the Senate today is 
taking action on H.R. 2519, the Philanthropy Protection Act, and H.R. 
2525, the Charitable Gift Annuity Anti-trust Relief Act. Both bills are 
very important to our Nation's charitable organizations. These bills 
deserve our full support.
  America's charities are America's inspiration. They serve those in 
physical and spiritual distress. They educate our children and adults 
so that they can become self-sufficient. They enrich our lives through 
music and the arts. They seek cures for diseases that plague humanity. 
They encourage the preservation of our environment. As our Government 
finally begins to tighten its fiscal belt, America's charities will be 
expected to assume an even greater responsibility. As they have done on 
so many occasions during war and peace, depression and prosperity, 
America's charities are prepared to answer the call for assistance.
  America's charities are a vital foundation of our Nation. However, 
today, they are under unwarranted and life-threatening assault. As many 
of my colleagues know, an ominous class action lawsuit in a Federal 
court in Texas has put American philanthropy in jeopardy. Specifically, 
this lawsuit disingenuously attempts to apply securities and antitrust 
laws meant to govern commercial enterprises to fundraising and money-
management techniques of charities. This is an application of Federal 
law never contemplated by Congress.
  This lawsuit has been an issue of great concern to this Congress. To 
their credit, my friends and colleagues from Texas and Connecticut, 
Senators Hutchison and Dodd, identified this problem early on and 
introduced S. 978 to address the issues raised in the lawsuit and 
clarify the role of the securities laws and the antitrust laws with 
respect to charitable organizations. I am pleased to be one of a number 
of bipartisan cosponsors of this legislation. I am even more pleased 
that the Senate is taking action to pass this legislation. Quick action 
to enact this legislation would free donors to make year-end gifts 
without fear of becoming entangled in a stressful, costly lawsuit. 
Further, enactment of this bill would free charities to do what they do 
best: serve the people of America. With the beginning of the holiday 
season--the peak period of charitable giving--passage of this bill 
could not have come at a better time.
  I also would like to commend our colleagues in the House of 
Representatives. They took action last night and passed both H.R. 2519 
and H.R. 2525 unanimously. I applaud the House leadership and the 
bipartisan sponsors of this bill, including Representatives Hyde, 
Conyers, Bliley, Fields, Dingell and Markey, among others, for working 
together to pass the bill as part of the House's Correction Day 
calendar.
  Action is needed. Millions of dollars of donations that should be 
going to charitable programs are instead being wasted on attorneys' 
fees and needless litigation. We must not stand idly by while America's 
charitable organizations are looted. Both bills make clear that 
charities that go astray of both the law and the public trust will be 
held accountable to the full extent of the law. Both bills would end 
unfair punishment of those charities that play by the rules and pursue 
their missions in good faith. Both bills restore fairness to the law 
and remove the cloud over charitable giving. Today, we can send an 
important signal to our citizens that in their time of need, America's 
charities will still be there for them and future generations.
  Again, I commend my colleagues from Texas and Connecticut, Senators 
Hutchison and Dodd, and all the co-sponsors of S. 978, for coming 
together in a demonstration of bipartisan support for America's 
charities.
  I urge all my colleagues to support immediate passage of H.R. 2519 
and H.R. 2525.
  Mr. LOTT. I ask unanimous consent the bill be considered and deemed 
read a third time and passed, the motion to reconsider be laid upon the 
table, and any statements relating to the bill appear at appropriate 
place in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 2519) was deemed read three times and passed.

                          ____________________