Credit-Counseling Charity May Be Sued, Court Rules
A federal law that bars lawsuits against certain tax-exempt organizations does not prevent a Massachusetts couple from suing a credit-counseling charity, a federal appeals court has ruled. At issue was whether Andrew and Kelly Zimmerman could sue Cambridge Credit Counseling Corporation in…
By Elizabeth Schwinn
Contributor
Government Releases Rules for Donations of Vehicles
The Treasury Department has issued guidelines to explain how donors of vehicles can take tax deductions for the gifts under a new law. The guidelines say that donors can take a larger deduction for vehicles that are eventually sold by charities to poor people for less than their real value. The…
By Elizabeth Schwinn
Contributor
Boards Urged to Do More to Focus on Charity Missions
Some nonprofit boards may be focusing too much energy on their legal responsibilities as board members and too little time on making sure a charity is a doing a good job of fulfilling its charitable mission, says the leader of the major national organization that advises charity and foundation…
By Elizabeth Schwinn
Contributor
IRS Proposes Rules on Patents, Other Gifts
The Internal Revenue Service has proposed new guidelines on what information charities should expect donors to provide when making gifts of patents and other intellectual property. The guidelines were issued under the American Jobs Creation Act of 2004, which sharply reduces the size of the tax…
By Elizabeth Schwinn
Contributor
Key Members of Congress Review Hospital Tax Breaks
By Harvy Lipman Two influential members of Congress are raising questions about the legal requirements nonprofit hospitals should meet in order to qualify for tax-exempt status. Sen. Charles E. Grassley, Republican of Iowa and chairman of the Senate Finance Committee, has sent a letter to 10 major…
By Elizabeth Schwinn
Contributor
IRS Files Charges Against Islamic Charity Officials
TAX WATCH By Elizabeth Schwinn Two former leaders of an Islamic charity have been arrested by federal officials and charged with improperly collaborating with alleged terrorist groups and with providing false information on the charity’s informational tax returns. Officials from the IRS and other…
By Elizabeth Schwinn
Contributor
Politicking Charges Threaten Church’s Tax Status
TAX WATCH By Elizabeth Schwinn A Baptist preacher who was accused of expelling some members of his congregation after they refused to support President Bush has resigned. The move follows a complaint by Americans United for Separation of Church and State, a watchdog group that asked the Internal…
By Elizabeth Schwinn
Contributor
TAX WATCH By Elizabeth Schwinn A national animal-rights charity says the Internal Revenue Service has completed its audit of the organization and found no signs of problems. Jeffrey S. Kerr, PETA’s general counsel, said the IRS “looked at all aspects of our operations, and we’re fine.” The group…
By Elizabeth Schwinn
Contributor
Senators Seek to Limit Charity Insurance Deals
The leaders of the Senate Finance Committee say they are introducing legislation to crack down on companies that improperly benefit from charity-owned life-insurance policies. Many charities buy life-insurance policies on their donors and sell the interest in the policies to companies, which make…
By Elizabeth Schwinn
Contributor
Conservatives Protest Senate Efforts
A coalition of 68 conservative and religious groups has asked Senate Majority Leader William H. Frist to block the Senate Finance Committee from taking actions that would change the way charities, foundations, and donors operate. The Senate panel has spent more than a year reviewing nonprofit…
By Elizabeth Schwinn
Contributor