Originally published June 3, 2004
The Exempt Organizations Advisory summarizes legal developments of interest to our exempt organization clients and friends of the firm. It is published on a periodic basis as developments warrant.
Finance Committee Schedules Oversight Hearing on Charities Tax-Exempt Status
On June 22, the Senate Finance Committee will hold a hearing on governance and best practices of charities, charities accommodating tax shelters, donor gifts of tangible and intangible property, and current problems and issues in the charitable community. IRS Commissioner Mark Everson and private sector witnesses are expected to testify.
Committee Chairman Charles Grassley (R-IA) said, "We have a responsibility to conduct oversight of the tax system. Lately, more and more tax problems involving charitable giving have come out. Our oversight should include which transactions are in keeping with the intent and spirit of the tax code, which may be inappropriately exploiting charities’ tax-exempt status, and which may be unfairly enriching individuals and corporations." Grassley said that the hearing may be used as a basis for consideration of possible legislation to address governance and best practices in charities as well as to respond to problems regarding certain donations of tangible and intangible property and potentially abusive situations.
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