In real world practice, becoming a board member for a nonprofit organization usually comes with little personal risk, and the probability of a member being legally accountable for actions taken by the nonprofit is relatively low. The fear of being…
We recently discussed a new bill which would require the IRS to give nonprofit organizations more advanced notice before revoking their tax-exempt status. Sens. Dan Coats and Ben Cardin coordinated the “Notice for Organizations That Include Charities is Essential (NOTICE)…
President Obama has once again pushed to limit charitable deduction in the budget he sent to Congress this past Monday. This budget is the seventh budget President Obama has sent to Congress that calls for a limit on tax breaks…
Dean Karlan, professor of economics at Yale University, recently wrote an article about determining if a charity is wasting donated money on overhead expenses. In this article, he discusses the “overhead ratio,” which we have discussed in a previous article…
The U.S. Government Accountability Office (GAO) found that audits of tax-exempt groups have been on the decline. Due to its lack of resources and a dwindling workforce, the IRS has only reviewed 0.7 percent of filing charities’ tax returns. Based…
We reported several weeks ago that the U.S. Senate was planning to vote on an extension of three lapsed tax breaks for charitable contributions. The three tax breaks include enhanced deduction for conservation easements, donations from retirement accounts, and breaks…
Ron Wyden, U.S. Senate Finance Committee Chairman, expects Congress to pass legislation to extend three lapsed tax breaks for charitable contributions. Such extensions would be made permanent. The three tax breaks include the following: enhanced deduction for conservation easements, donations…
Giving Tuesday is a day that gives the world a chance to celebrate charities. In the past, it has been known as a day that follows Black Friday and Cyber Monday, but the increasing support shows it stands out on…
A big development has occurred in a story we’ve been following for quite some time. The Treasury Inspector General for Tax Administration reports that some of the missing e-mails belonging to former IRS employee Lois Lerner have been found. Lerner…
January 2023 UPDATE: the links to the Overhead Myth letter in the article below have been disabled due to the site no longer being active, however the Overhead Myth is important enough of a topic for us to keep the…