Wednesday (5/16) on the Nonprofit Times site, Joann M. Weiner writes, “At a time when many nonprofits are seeing an increased demand for services amid government deficits at all levels, organizations are under increased congressional scrutiny of their tax-exempt status and their activities. The Oversight Subcommittee of the House Ways and Means Committee held a hearing Wednesday morning that examined the operations and oversight of tax-exempt organizations. … The tax-exempt sector plays an important role in the U.S. economy. As of 2008, 1.85 million organizations were exempt from federal income tax, and 1.19 million of these organizations also qualified as charitable organizations under section 501(c)3 of the tax code. Individual and corporate contributions to such organizations are tax deductible. This provision is costly to the federal government. … Diana Aviv, president and CEO of Independent Sector (IS), noted that charitable donations are significantly influenced by the incentives in the tax code. In her prepared testimony, Aviv cited the fact that ‘more than 22 percent of all annual online charitable donations in the U.S. are made on December 30 and 31’ as proof of how sensitive these contributions are to the tax break. … As part of his federal budget proposals in recent years, President Barack Obama has proposed lowering the tax deduction on charitable contributions, among other things, for people earning more than $200,000 annually.”
Posted May 17, 2012
