Tag Archives: Boys & Girls Clubs of America
October 21, 2011, 5:07 pm
The Senate on Thursday rejected a proposal to bar the Justice Department from awarding grants to charities that put money in offshore accounts to avoid paying income taxes.
But Sen. Charles E. Grassley, who promoted the idea as an amendment to a spending bill, said he would continue pushing the measure. The Iowa senator, the senior Republican on the Senate Judiciary Committee, said it was designed to cover groups like Boys & Girls Clubs of America—an organization he has criticized since a 2010 Senate investigation found it held more than $50-million in off-shore equities and partnerships. That allowed it to avoid paying unrelated business income tax, or UBIT—taxes that charities owe on income they earn from businesses not directly tied to their charitable missions.
Senator Grassley proposed the offshore-tax measure as part of an “11-point accountability plan” for the…
July 18, 2011, 5:58 pm
Sen. Charles E. Grassley, senior Republican on the Senate Judiciary Committee, has introduced legislation that would deny some federal money to charities that put money in offshore accounts to avoid paying income taxes.
The Iowa senator has proposed barring such charities from getting grants from a federal program that helps prisoners re-enter society. The proposal follows an inquiry that he and several other lawmakers conducted last year into Boys & Girls Clubs of America.
Mr. Grassley’s move—an amendment to a bill pending in the Judiciary Committee to extend the so-called Second Chance Act—takes aim at unrelated business income tax, or UBIT. Those are taxes that charities owe on income they earn from businesses that are not directly tied to their charitable missions.
While moving money offshore to avoid those taxes isn’t illegal, Mr. Grassley said in a statement…