Donor advised funds enable people to claim a charitable tax deduction on donated cash, stock, and other assets to these special accounts offered primarily by financial companies and community foundations while also allowing them to recommend how, when, and to which charities their money should be distributed. Donor advised...
IRS Eliminates Advance Rulings Process
On September 8, 2008, the IRS issued new regulations that eliminate the public charity advance ruling process. IR-2008-102, “IRS Streamlines Application Process for New Tax-Exempt Organizations,” stated in part: The Internal Revenue Service and the Treasury Department today issued new regulations that do away with the so-called advance rulings...
Foundations Supporting Advocacy
Private foundations are subject to strong prohibitions on “direct” and “grassroots” lobbying, generally meaning any direct contact with a member of a legislative body regarding specific legislation and encouragement by the foundation to have individuals contact legislators to convey a position on specific legislation, respectively. However, as the Donor...
Microphilanthropy
Microphilanthropy is a term that is being used more and more frequently. As one of the “top ten philanthropy buzzwords of 2007”, perhaps more attention needs to be paid to this emerging practice. The concept is similar to the notion behind the Grameen Bank. However, where microfinance talks of...
Growing Nonprofits Consider Increased Government Involvement
As the role of nonprofits in America grows, many of the organizations are lobbying for increased, revamped federal support. In its current form, the government offers no specialized agency catering to the interests of nonprofit organizations. Now, some nonprofit leaders like Steve Gunderson of the Council on Foundations and...
Mergers
Some nonprofit organizations facing financial troubles or wishing to enhance the effects of their efforts may find their solution in a merger. According to the New York Times (November 11, 2007), the merging of the Hands on Network and Points of Light Foundation resulted in a combined budget of...
Donor Enforcement of Charitable Gift Restrictions – BASF CLE Program
On September 3, I attended a presentation on Donor Enforcement of Charitable Gift Restrictions given by Ron Malone, senior litigation partner with Shartsis Friese, at the Bar Association of San Francisco Conference Center. Here are some of the highlights: Whether a gift is restricted is ultimately a factual question....
Charity Lobbying – Report from the John Hopkins Nonprofit Listening Post Project
A recent report from the John Hopkins Nonprofit Listening Post Project, authored by Lester M. Salamon and Stephanie Lessans Geller, shows that charities are not lobbying as much as they perhaps should: the vast majority of charities spent less than 2 percent of their budgets on either lobbying or...
Disaster Relief (2008 Update)
For charities and contributors involved in disaster relief efforts, the IRS website includes an article that provides several helpful resources. The FAQs address the following areas: Providing relief through an existing charitable organization. Creating a charitable organization to provide disaster relief. Providing relief to employees of particular employers. Charitable...
California Property Tax Welfare Exemption
In March 2008, the California State Board of Equalization published Publication 149 – Property Tax Welfare Exemption. Here is an excerpt from the Introduction: The California Legislature has the authority to exempt property (1) used exclusively for religious, hospital, or charitable purposes, and (2) owned or held in trust...
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