May 29, 2008
IRS Uses Controversial Test to Deny Charity Status
In a ruling that could have implications for many charities, the Internal Revenue Service has denied a tax exemption to an organization in part because the group did not spend enough of its money on charitable programs.
This is the first public sign that the revenue service is using a controversial approach the government recently decided to apply to measure how much charities spend.
The IRS said the organization did not carry on a charitable program "commensurate in scope"
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