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Public
Policy News & Resources Archive
 LEGISLATIVE
WATCH
PANEL
ON THE NONPROFIT SECTOR
 NEWS
AND CLARIFICATION FROM THE IRS
Request for comments on Organization and Operation of Donor Advised Funds and Supporting Organizations (February 2007)
In Notice 2007-21, the Treasury Department and IRS request comments on issues relating to the organization and operation of donor advised funds and supporting organizations, to be included in a study of these organizations. Results of the study will be reported to the Senate Finance and House Ways and Means Committees in August 2007. Comments are due by April 9, 2007. For more information see: http://www.irs.gov/charities/charitable/article/0,,id=167603,00.html
Collecting More Data on Donor-Advised Funds and Supporting Organizations Could Help Address Compliance Challenges (July 2006)
Donor-advised funds and supporting organizations are two charitable-giving options that have received attention from Congress and the Internal Revenue Service (IRS) for their potential to facilitate noncompliance with tax law.
As requested, GAO is providing information on donor-advised funds and supporting organizations related to (1) federal laws and regulations, compared to private foundations; (2) financial and organizational characteristics; and (3) types of noncompliance and promotion methods and challenges identifying them.
Full Report available
Script and Materials from IRS phone call on Executive
Compensation Now Available (July
24, 2006)
The IRS held a phone forum on Executive Compensation in Nonprofit
Organizations in May 2006. The transcript and presentation materials
from that call are now available on the IRS
website. Given the intense scrutiny this issue is receiving
from many sources right now, you may wish to take a look at this
information.
IRS Reminds Charities to Avoid Campaign Activities
this Election Season (June 12,
2006)
The Internal Revenue Service (IRS) has released reminders and
guidance to charities regarding the avoidance of campaign activities
this election season. All charities (private foundations and public
charities alike) are prohibited from directly or indirectly influencing
the outcome of an election, and the penalties for doing so range
from fines to loss of 501(c)(3) status. The IRS has developed
several resources for charities and churches to help them understand
the limits in the law, and how to safely engage in voter education
without crossing the line into electioneering. Please see those
materials at: IRS Reminds Charities to Avoid Campaign Activities this Election Season (June 12, 2006) - links at the bottom of the page.
This is an area where the IRS is stepping up oversight and enforcement.
If you have any questions at all about whether activities you,
your foundation, charity, staff or trustees will engage in are
legal, you should consult these resources and possibly your counsel
as well before proceeding.
View Tax Talk discussion with IRS on Charities
and Political Activities (updated
April 11, 2006)
The Tax Talk session Political Intervention: Do's and Don'ts
for Charities and Churches is available for viewing, via
streaming video. (You will need to register with the site
to access the archive. Registration is free.)
The session description on the site reads “As the 2006
election season begins, section 501(c)(3) organizations, including
charities and churches, should join us for a discussion on what
they can and can not do when an election campaign is under way.
IRS subject matter experts will explain the rules, provide examples
to highlight acceptable activity, discuss the Service's Political
Activity Compliance Initiative for the election year, and introduce
new educational materials.”
Speakers included: Thomas J. Miller, Technical Advisor to the
Director
EO Rulings & Agreements, Tax Exempt and Government Entities
Operating Division (TE/GE), Internal Revenue Service; Celia Roady,
Partner, Morgan, Lewis & Bockius LLP; and Judtih E. Kindell,
Tax Law Specialist, Exempt Organizations Rulings and Agreements,
Tax Exempt and Government Entities, Internal Revenue Service.
IRS Report on Political Activity by 501(c)(3)s during
2004 Election
(March 1, 2006)
The IRS has released a report on their investigations in
to allegations of political activity by nonprofits during the
2004 Election. The investigation found that in three-quarters
of the cases reviewed, there was some level of prohibited activity
by the organizations investigated. Read
the report, executive summary and obtain more information.
In addition, the IRS has released updated guidance for the 2006
Election season for nonprofits. View
the fact sheet.
Reminder from the IRS about rules for 501(c)(3)s and
judicial nominations (July 28,
2005)
With the nomination of Justice John Roberts for the Supreme Court
of the United States, the IRS has issued a reminder notice about
the regulations that apply to tax exempt organizations and judicial
nominations. In brief: attempts to influence Senate confirmation
of a federal judicial appointment are not considered campaign
intervention, which is specifically forbidden by section 501(c)(3).
However, because attempts to influence Senate confirmation are
considered lobbying, they are subject to the rules on lobbying.
You may read the full notice at http://www.irs.gov/charities/article/0,,id=141372,00.aspx.
Treasury Releases Updated Anti-Terrorist Guidelines for
Charities. Comments will be accepted through February 1, 2006.
(December 12, 2005)
The U.S. Department of the Treasury has issued revised
its Anti-Terrorist Financing Guidelines, Voluntary Best Practices
for U.S.-based Charities (Guidelines). These Guidelines are designed
to help the charitable sector protect itself from abuse by terrorist
organizations. Although these revised Guidelines immediately supersede
the November 2002 Guidelines, the Treasury will consider all comments
received on or before February 1, 2006.
More>
Life Cycle of a Private Foundation now on the IRS Website
(October 28, 2005)
The IRS has developed a “Life Cycle of a Private Foundation”
section of its website. It may be found at: http://www.irs.gov/charities/charitable/article/0,,id=127912,00.aspx
Serve your country – Advise the IRS! (October
28, 2005)
The IRS is accepting applications for its Advisory Committee on
Tax Exempt and Government Entities (ACT). The ACT is an organized
public forum for the IRS and representatives who deal with employee
plans, exempt organizations, tax-exempt bonds, and federal, state,
local and Indian tribal governments. The ACT allows IRS to receive
regular input on administrative policy and procedures of the Tax
Exempt and Government Entities Division. There are two openings
for Exempt Organizations.
More information about the ACT and the application process is
available at http://www.irs.gov/newsroom/article/0,,id=149848,00.aspx
Applications will be accepted through November 25, 2005.
IRS' Draft Form 990 (October
11, 2005)
The IRS has made the draft
form 990 (the annual tax return for public charities) available
for comment.
The IRS has updated its page
with information on e-filing for charities and foundations.
Information from IRS on Katrina Giving
(September 8, 2005)
The IRS has announced expedited processing of applications
for exempt organizations being formed to respond to the relief
and recovery needs in the aftermath of Hurricane Katrina. Please
click
here to read more. This same site has links to information
on tax relief for residents in the effected areas, and how to
find qualified organizations to which to make contributions.
Draft Forms Available for Comment (August
26, 2005)
The IRS has made certain draft reporting forms available
for public comment. Among the forms currently available for comment
are the 990-EZ, Schedule A for the 990 and 990-EZ and Schedule
B for Forms 990, 990-EZ and 990-PF. You may access the draft forms
and instructions for commenting at http://www.irs.gov/charities/charitable/article/0,,id=146362,00.aspx
New Testimony page on IRS Website (June
21, 2005)
The IRS has added a new
page to their Tax Exempt Organizations section of their website.
This page contains testimony by IRS and Treasury Department Officials
on issues of interest to the tax exempt sector. The testimony
page includes links to recent testimony by IRS Commissioner Mark
Everson and Tax Exempt/Government Entities Commissioner Steven
T. Miller on conservation easements, the tax-exempt health care
sector, and abusive tax avoidance transactions.
New IRS Team on Easement Abuses (June
21, 2005)
The IRS has established a team that will focus on tracking down
abusive tax breaks claimed through conservation easements. The
team was announced in the written testimony of Steven T. Miller,
the IRS commissioner for tax-exempt entities, to the Senate Finance
Committee on June 8, 2005. Much of the hearing on June 8 focused
on a 2-year long Finance Committee investigation into the Nature
Conservancy and some its practices related to land management.
Information on the Report on the Nature Conservancy and the hearing
may be found at http://finance.senate.gov/sitepages/hearings.aspx
Latest ACT Report available (June
21, 2005)
The Advisory Committee on Tax Exempt and Government Entities issued
its fourth report of recommendations on June 8, 2005. The ACT's
recommendations for the Exempt Organizations Division (EO) of
the IRS focus on improving compliance through educating new charities
about their responsibilities and reducing compliance burdens.
The full report can be found at
http://www.irs.gov/pub/irs-tege/p4344.pdf (Warning!
This is a very large PDF).
IRS Commissioner Includes Focus on Nonprofits in National
Press Club Speech (March
22, 2005)
IRS Designate the December 26th Tsunamis as a Qualified Disaster
under §139 of the Internal Revenue Code.
(March 2, 2005)
New e-Filing requirements for tax-exempt returns (990s
and 990-PFs) (February 14,
2005)
IRS Chief Counsel Memo on
International Grantmaking (February
14, 2005)
Clarification on Funding Charities that Lobby (February
14, 2005)
REPORTS/RESOURCES
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