The Senate Finance Committee on Thursday is playing host to a hearing that will focus on the controversial use of offshore banks in places like the Cayman Islands to shield earnings from federal taxes.

The committee has not yet announced its list of witnesses for the hearing.

But for many nonprofit institutions that manage overseas funds, the session bears watching.

Two key leaders of the powerful committee — Sen. Max Baucus and Sen. Charles Grassley — have made previous statements that condemn the use of overseas accounts to block the federal government from collecting taxes on income from hedge funds.

Mr. Baucus, a Democrat from Montana, chairs the committee. Mr. Grassley, of Iowa, is its senior Republican member.

Under current laws, institutions are able to use so-called blocker companies overseas to convert taxable profit from hedge funds into dividends, which are not...

Joe Novak sees a lot of abuse in the U.S. health-care system.

The former political and media consultant sees it in the profits earned by drug companies and the waste found in the insurance industry.

Mr. Novak also sees it in the financial practices of many nonprofit hospitals — an issue he believes does not get enough scrutiny.

With that in mind, the one-time aide to former Rep. William Lipinski of Chicago started a Washington nonprofit group called WhereTheMoneyGoes, which operates a Web site that uses public records to raise questions about the financial practices of nonprofit hospitals.

Recent posts on the site point to a building project at Sumner Regional Medical Center in Gallatin, Tenn., and the compensation packages paid to top executives at Bethesda Memorial Hospital in Boynton Beach, Fla., and Regional Health Care Services in Casa Grande, Ariz.

Mr. Novak is drumming ...

A California eye-insurance provider is petitioning the U.S. Supreme Court to reverse a 2003 decision by the Internal Revenue Service to revoke its tax-exempt status.

VSP Vision Care, in Rancho Cordova, Calif., said it believes the IRS overstepped its bounds when it ruled in 2003 that the organization does not provide enough services to the needy to justify its tax-exempt status.

The organization, which is the nation’s largest eye-insurance provider, has continued to do business as a nonprofit organization, but is paying federal income taxes as it has attempts to get the decision reversed.

The U.S. Court of Appeals upheld the IRS’ decision in January, prompting the insurance company’s petition to ask the Supreme Court to review the case.

Earlier decisions had determined that the organization “is not operated exclusively for the promotion of social welfare.”

But the insurance...

The Internal Revenue Service has made progress in improving the speed at which it processes applications by groups seeking tax-exempt status.

But Nina E. Olson, the national taxpayer advocate, says the agency still is not moving fast enough.

Ms. Olson, who operates independently of other IRS offices and reports to Congress, said in a new report that she plans to work with the IRS’s tax-exempt and government-entities division to change the way the agency processes applications for nonprofit status.

To qualify as a tax-exempt organization, groups must file Form 1023, which includes information about a group’s proposed activities and operations.

Because of the number of applications it receives, the IRS has been slow to keep up with processing the Form 1023 — leading to lengthy delays for groups that are awaiting a ruling on their nonprofit status.

Ms. Olson said in her report to...

The Internal Revenue Service has revoked the tax-exempt status of an organization that seeks to decriminalize consensual sexual activity between adults and minors.

The organization had applied to receive tax-exempt status, saying that its charitable mission was to work for “law change to protect the rights of sexual-active consenting kids and adults, and to amend child pornography law; to provide counseling to sexual-active kids and adults; and scientific studies; educational and artistic.”

The group’s founder and executive director said in filings with the IRS that he had served prison time for two counts of sex abuse with minors before starting the organization. The man was listed as its sole officer and board member.

The IRS denied the request, saying that it organizations that work to violate laws do not have a charitable purpose. As is its policy in these rulings, the...

Congress is considering legislation that would increase the tax deduction for people who use their automobiles as part of their volunteer work for charities.

Under federal law, volunteers who drive their cars for charitable purposes may be reimbursed up to 14 cents per mile without the payments being subject to federal income tax.

Some members of Congress say that rate is too low, particularly as gas prices have reached more than $4 per gallon.

Bills pending in Congress would increase the reimbursement to reflect the business mileage rate, which was raised this week to 58.5 cents per mile.

Sen. Russell D. Feingold, a Wisconsin Democrat, is sponsoring a Senate bill that would increase the reimbursement. Rep. Todd Russell Platts, a Pennsylvania Republican, has introduced legislation in the House.

Both lawmakers have introduced similar bills in the past, with no success.

But...

Donna Edwards will soon be reporting to a new office in Washington.

Ms. Edwards, the executive director of the Arca Foundation in Washington, won a special election Tuesday to represent Maryland’s Fourth Congressional District in Congress.

The Democrat had defeated Rep. Albert R. Wynn, who now holds the seat, in the Maryland primary in February. After his loss, Mr. Wynn decided to vacate his seat to allow Ms. Edwards to get a jump start in her new role — provided she was able to win Tuesday’s special election.

Because Ms. Edwards lives in a largely Democratic district, she was heavily favored to defeat Republican nominee Peter James.

Ms. Edwards and Mr. James will go head-to-head again in November’s general election.

But for now, at least, she is relishing her victory, which makes her Maryland’s first black female member of Congress.

“It really didn’t hit us about the...

A Washington foundation leader will learn tomorrow whether she will be the newest member of Congress.

Donna Edwards, executive director of the Arca Foundation, in Washington, is the favorite to win Tuesday’s special election to represent Maryland’s Fourth Congressional District.

Ms. Edwards, a Democrat, defeated Rep. Albert R. Wynn, who now holds the seat, in the Maryland primary in February.

Mr. Wynn has since decided to vacate his seat — a decision that is expected to allow Ms. Edwards to get a head start in Congress and solidify her effort to win the seat in November’s general election.

Sen. Charles Grassley of Iowa is still considering proposing legislation that would require colleges and universities to distribute at least 5 percent of their endowments each year..

Mr. Grassley, the senior Republican on the Senate’s powerful Finance Committee, wrote in an opinion article published in The Chronicle of Higher Education to express concern that colleges and universities are not doing enough to make higher education more affordable.

Several major universities — including Harvard University, Yale University and Stanford University — have announced plans in recent months to reduce tuition costs and increase aid to students from lower- and middle-income families. Those plans followed a Finance Committee hearing last fall in which Mr. Grassley and others called for more scrutiny of college endowments.

But while the changes have mollified the concerns of some observers,...

The leader of a Washington foundation is widely expected to become the newest member of Congress.

Donna Edwards, executive director of the Arca Foundation in Washington, is the favorite to win a June 17 special election to represent Maryland’s Fourth Congressional District.

Ms. Edwards, a Democrat, defeated Rep. Albert R. Wynn, who now holds the seat, in the Maryland primary in February.

Mr. Wynn has since decided to vacate his seat — a decision that is expected to allow Ms. Edwards to get a head start in Congress and solidify her effort to win the seat in November’s general election.

Ms. Edwards said during a recent speech at the Council on Foundations annual meeting that her experience in the nonprofit world will inform her decision making as a lawmaker.

“You’re going to have yet another friend on Capitol Hill,” Ms. Edwards told the foundation leaders.