The Foraker Group is actively working with the National Council of Nonprofits to save the charitable giving incentive, which is at risk as part of the budget negotiations going on right now in Washington D.C. Federal tax law currently provides an itemized deduction to encourage individuals to give to charitable organizations whose missions they support. The Joint Select Committee on Deficit Reduction (the Super Committee) is looking for ways to reduce the federal budget deficit through spending cuts, entitlement reforms, and changes to the tax code. Politicians from across the political spectrum have put forward plans to address these issues, and most propose changing the charitable deduction in one way or another. Yet no one knows the true impact that any of these proposals will have on the ability of… Read more »

This action alert was issued by the National Council of Nonprofits last week. Please consider if your organization should be involved…. Read more »

Volunteers who do work for charitable organizations and incur unreimbursed expenses may now be allowed to claim those as deductions on their tax returns, thanks to a ruling by the U.S. Tax Court and a woman who challenged the Internal Revenue Service. We all know that volunteers spend money out of their own pocket. Let us know if you have a story to share. Read more-… Read more »

Unlike other tax incentives-for buying a home, installing energy-efficient windows, or buying a fuel-efficient car-the charitable deduction is unique in that it rewards behavior that, by definition, provides no direct benefit to the individual. Whatever options are on the table for tax reform, the tax code should continue to encourage the selfless act of giving to charity. In an ideal world, changes would both increase charitable giving and save the government money. A new study from the Congressional Budget Office (CBO), examines 11 ways that changes in the tax code could impact individual charitable giving and evaluates what each would mean for federal tax revenue. Read more-… Read more »

The Internal Revenue Service (IRS) is inviting public comment on issues and frequently asked questions regarding Form 990. Issues for comment include a consideration to eliminate a section asking to report activity codes, reporting compensation to management companies and leasing companies owned by an organization’s leadership, and thresholds for reporting compensation to key employees. Please share with our readers your concerns. Read more-… Read more »

The Internal Revenue Service said yesterday that 275,000 nonprofits have lost their tax-exempt status because they did not file legally required documents for three consecutive years. That move trims the number of tax-exempt groups by about 14 percent. Of those 275,000, Alaska accounts for 900. Many of the groups that lost their exemptions are nonprofits, and donors to those organizations cannot claim a charitable deduction for gifts to the groups after the IRS makes the list official. Many of the organizations are believed to be defunct, the IRS said, but groups that are still operating may now apply to get their nonprofit status back. View here-… Read more »