[EL] "I.R.S. Begins Enforcing Rule on Gifts to Political Nonprofits"

[Jonathan Singer]

Really? "Most donors have just assumed that donations to nonprofits were all
gift-tax-exempt." Is that really true? Is there any evidence to back that
up? Or do most people think that donations to *charitable* non-profits were
all gift-tax-exempt?

Jonathan

On Fri, May 13, 2011 at 7:33 PM, Jon Roland <jon.roland at constitution.org>wrote:

>  Reports I am getting from many nonprofit managers that rely on donations
> presents an alarming picture of donors, reacting to the news reports,
> suspending donations of all kinds, even to gift-tax-exempt recipients,
> pending word from their lawyers, and some are just abandoning donations to
> be on the safe side. It is even affecting 501(c)(3) and 501(c)(19) veterans
> organizations, as well as 527s. Most donors have just assumed that donations
> to nonprofits were all gift-tax-exempt, and are now scared of any gift
> non-reporting triggering a general audit of all their activities, even if it
> falls under the $13,000.00 annual exclusion. It is the reporting requirement
> that bothers them, not the money.
>
> Some of the recipients being affected include:
> 508 churches
> Scholarships, fellowships, and research grants to individuals (despite the
> educational exemption)
> Grants to support public-interest litigation
> Grants to support public-interest political reforms that have no business
> rationale
> Grants to feed, house, and job-train poor and homeless that don't go
> through a 501(c)(3)
> Donations to informal state and local non-electoral political campaigns,
> such as for public testimony on legislation
>
> There is a huge nonprofit sector that is not involved in electoral politics
> (and so arguably off-topic for this listserv), but as long as we are
> addressing the topic, we might as well consider all the impacts, because
> they may ultimately affect election legislation.
>
>
>
> On 05/13/2011 12:50 PM, James Lacy wrote:
>
> this recent IRS action only potentially affects INDIVIDUAL gifts to
> nonprofits
>
>
>
> -- Jon
>
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-- 
Jonathan Singer
http://www.polising.com
Cell: (503) 705-2952
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