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Hundreds of N.Y. City Charities Lose Tax Breaks

June 8, 2012, 10:22 am

New York City’s Finance Department has revoked tax exemptions worth $38-million from 925 organizations it says could not or did not attempt to prove they warranted the breaks, says the New York Post.

The revocations, which take effect July 1, follow department outreach efforts—including warning letters and visits by assessors—aimed at weeding out organizations trying to exploit charity tax advantages. Some groups were eliminated for failing to respond to a city survey, while others were considered undeserving of tax exemptions.

Examples of the latter included an American Youth Hostel, which a city official said was “not carrying out any mission” beyond offering low-cost accommodation, and the United Jewish Appeal, which saw its tax break reduced from 100 percent to 9 percent because it leases 91 percent of its Manhattan headquarters for commercial uses.

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