Law Cracks Down on Charitable Tax Breaks

Citing abuses by donors eager to rack up tax breaks, the federal government will begin to monitor such transactions more closely, reports The Wall Street Journal.

A bevy of regulations, part of this summer’s pension-reform bill in Congress, will require donors and charities to be more accountable. For example, noncash property will be scrutinized to make sure it is not overestimated in value, and donors will now need receipts to deduct even money dropped into church collection plates.

At the same time, a few of the new laws should encourage philanthropic giving, which is up 6 percent since 2005, to $260-billion.

See The Chronicle of Philanthropy’s coverage of the pension-reform bill here.

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