September 2008
September 30, 2008
Advocacy Group Under Fire for DVD
The Clarion Fund, an advocacy group with a mission “to educate Americans about issues of national security,” has been accused of violating rules that prohibit nonprofit organizations from direct partisan political activity.
On its Web site, the fund says it is a nonpartisan organization.
The controversy erupted when the fund distributed millions of copies of a DVD about Muslim terrorists titled, “Obsession: Radical Islam’s War Against the West.”
The move prompted the Council on American-Islamic Relations, in Washington, to file a complaint with the Federal Elections Commission that says the DVD was meant to benefit Sen. John McCain’s election efforts.
Gregory Ross, a spokesman for the Clarion Fund, told The Chronicle that the organization has not been contacted by the elections commission and denies any wrongdoing. “We have maintained to the letter of the law what we can and can not do as a nonprofit,” he said.
September 29, 2008
Charity Tax Breaks Stall in Congress
Leaders in the U.S. House of Representatives have announced they will adjourn without reconciling a set of tax breaks, including several measures that would affect charitable giving, with a bill passed earlier this month by the Senate.
After several months of difficult negotiations, the Senate early last week passed its version of legislation that would renew a variety of tax breaks, such as allowing older donors to get a tax break when they give charities money from their individual retirement accounts.
Until December 31 of last year, donors age 70 1/2 or older were able to transfer up to $100,000 to charity from their individual retirement accounts each year without paying income taxes on the money. The Senate’s legislation would renew the provision retroactive to January 1, 2008, and extend it to the end of 2009.
Additional provisions in the Senate legislation would renew and extend other breaks related to charitable giving, including special deductions that businesses may take for gifts of food and donations of books and computers to schools.
The legislation also has provisions that would create tax incentives for charitable giving to help victims of summer storms, tornadoes, and floods in the Midwest.
But the House passed differing versions of those measures.
The White House had threatened to veto the House’s version of the tax cuts.
— Eric Kelderman
September 23, 2008
Senate Passes Bill to Extend Charity Tax Breaks
By a vote of 93 to 2, the Senate has passed legislation that would renew and extend several tax provisions affecting charitable giving.
One key provision would allow older donors to get a tax break when they give charities money from their individual retirement accounts.
The House of Representatives now will review the Senate legislation. In May, the House passed its own bill that would renew and extend tax provisions, including the one for IRAs. The Senate and House differ over how the legislation should be paid for and would have to agree before Congress could pass final legislation.
Until December 31 of last year, donors age 70 1/2 or older were able to transfer up to $100,000 to charity from their individual retirement accounts each year without paying income taxes on the money.
The Senate-passed legislation would renew the provision retroactive to January 1, 2008, and extend it to the end of 2009.
Additional provisions in the Senate legislation would renew and extend other breaks related to charitable giving, including special deductions that businesses may take for gifts of food and donations of books and computer to schools.
The legislation also has provisions that would create tax incentives for charitable giving to help victims of summer storms, tornadoes, and floods in the Midwest.
People who use their cars and other vehicles to provide disaster relief in the Midwest would be able to deduct 41 cents per mile — 70 percent of the current business mileage rate — through the end of 2008. The rates now are 14 cents per mile for charitable activities and 58.5 cents for business activities.
Volunteers in the Midwest could also exclude from their income reimbursements from charities for the use of their vehicles up to the amount of the standard business rate through the end of 2008.
September 22, 2008
Both McCain and Obama Back New National-Service Bill
The top two presidential candidates, Republican Sen. John McCain and Democrat Sen. Barack Obama, have agreed to co-sponsor a bill to expand the country’s national-service programs and provide money to help nonprofit groups recruit volunteers and replicate innovative programs.
The Serve America Act, which would more than triple participation in year-long national-service programs like AmeriCorps by 2013 and create several new federal programs, was unveiled a little over a week ago at the ServiceNation Summit in New York.
The bill — drawn up by Sens. Edward Kennedy, Democrat of Massachusetts, and Orrin Hatch, Republican of Utah — has also attracted as co-sponsors Chris Dodd, Democrat of Connecticut; Hillary Clinton, Democrat of New York; and Thad Cochran, Republican of Mississippi.
The full text of the bill, S. 3487, is now available, providing more detail about the proposals, including budget figures for several programs to help charities:
- Community Solutions Funds. The Corporation for National and Community Service would provide grants to help nonprofit groups replicate and expand innovative programs helping people in low-income neighborhoods. The money would go to grant-making institutions with an expertise in specific areas such as public-school education, access to health care, and energy efficiency — which would in turn make subgrants to nonprofit groups. Proposed budget: $50-million in fiscal year 2009, rising to $100-million by 2013 — with matching funds from non-federal sources required.
- Innovation Fellowships. The Corporation for National and Community Service would provide two-year grants of up to $100,000 to individuals to help them create innovative charities. The grants would be limited to people who were veterans or had participated in certain national-service programs. Proposed budget: $3.5-million in fiscal year 2009 and $5-million each subsequent year through 2013.
- Volunteer Generation Fund. The Corporation for National and Community Service would provide grants (for three to five years) to state commissions or nonprofit volunteer-coordinating groups to help them recruit more volunteers to work for charities. Proposed budget: $50-million in fiscal year 2009, rising to $100-million by 2013 — with matching funds required from non-federal sources.
In addition, the bill outlines plans for a Commission on Cross Sector Solutions. This 21-person panel would examine ways the federal government can “interact more efficiently and effectively” with charities, philanthropic organizations, and businesses to address social problems. It would study issues like how to make it easier for nonprofit groups to get federal grants and contracts, how government policies could make nonprofit groups more accountable, and whether the federal government should step up spending on social-service research.
The commission’s members — experts in areas like nonprofit management, social entrepreneurship, and business — would be appointed by the president and Senate and House majority and minority leaders.
Few other specific budget figures are spelled out in the legislation, but Senator Hatch told the New York conference that the bill as a whole would cost $5-billion over five years.
That price tag would be on top of the budget for existing national-service programs. A bill to reauthorize those programs, the GIVE Act, was defeated earlier this year by one vote. Senator Kennedy plans to combine the Serve America Act with new legislation to reauthorize the existing programs, an aide said.
Tax Agency Outlines Its Priorities Through June 2009
The Internal Revenue Service has released its list of 314 projects that it plans to complete before the end of June 2009, including 11 items that would directly affect tax-exempt organizations.
Included in the agency’s to-do list for nonprofit groups are finalizing the regulations for the new Form 990, proposed rules and penalties for donor-advised funds, and new disclosure requirements for tax-exempt organizations that participate in tax shelters.
IRS Offers Form 990 Webcast November 4
The Internal Revenue Service will offer a Webcast on November 4 to explain important changes in the new Form 990, the income and spending disclosures form required for most tax-exempt organizations.
The presentation includes a panel of tax experts, including IRS officials Ronald J. Schultz, a senior technical advisor at the agency, and Stephen Clarke, a tax-law specialist.
September 18, 2008
Bill Clinton Promotes National Service
With both John McCain and Barack Obama promising to expand national service, a former president applauds their efforts.
In an interview with The Chronicle, Bill Clinton said the next president should make volunteerism an integral part of citizenship.
“In an interdependent world, being a good citizen involves more than being an informed voter and paying your legal taxes,” he said. “You should make contributions, not just of money, but of time.”
Mr. Clinton said that expanding AmeriCorps — the national service program he founded while in office — would be a good way to encourage philanthropy.
Listen to The Chronicle’s interview with the former president, in which he discusses the upcoming Clinton Global Initiative meeting, the controversy about anonymous donors to his presidential library, and why he enjoys philanthropy more than politics.
September 17, 2008
ACLU Starts Voter Campaign
The American Civil Liberties Union announced today its “I’m a Constitution Voter” campaign, which seeks to get Americans to pledge to consider civil-liberty concerns when they enter the voting booth in November to choose the next president.
On its Web site, the group asks visitors to sign a petition that demands that the next occupant of the White House close the Guantánamo Bay prison, among other moves.
In issues related to the nonprofit world, the organization also wants the next president to examine government-supported religious social-service programs to make sure they do not violate the Constitution and end “monitoring” by law-enforcement agencies of political activists.
In a related move, the ONE Campaign, an antipoverty group in Washington, is trying to influence next week’s presidential debate in Mississippi. The group wants supporters to sign a petition to persuade the moderator, Jim Lehrer of the Public Broadcasting Service, to ask John McCain and Barack Obama about what they would do to ameliorate global poverty.
So far, 37,000 people have signed the petition, the charity says.
Senators Work Out Deal to Extend Charity Tax Breaks
Key Democratic and Republican Senators have worked out a measure to renew and extend several tax provisions affecting charitable giving, including one that allows older donors to get a tax break when they give charities money from their individual retirement accounts.
Until December 31 of last year, donors age 70 1/2 or older were able to transfer up to $100,000 to charity from their individual retirement accounts each year without paying income taxes on the money.
Senators have agreed to renew the provision retroactive to January 1, 2008, and extend it to the end of 2009.
Additional provisions in the legislation would renew and extend other breaks related to charitable giving, including special deductions that businesses may take for gifts of food and donations of books and computers to schools.
The legislation also has provisions that would create tax incentives for charitable giving to help victims of summer storms, tornadoes, and floods in the Midwest.
For example, people who use their cars and other vehicles to provide disaster relief in the Midwest would be able to deduct 41 cents per mile — 70 percent of the current business mileage rate — — through the end of 2008. The rates now are 14 cents per mile for charitable activities and 58.5 cents for business activities.
Volunteers could also exclude from their income reimbursements from charities for use of their vehicles up to the amount of the standard business rate through the end of 2008.
The bipartisan agreement on the legislation was reached between Senate leaders and Sens. Max Baucus, a Montana Democrat who chairs the Senate Finance Committee, and Charles Grassley of Iowa, the committee’s senior Republican. A full Senate vote on the legislation may take place as early as this week.
In May, the House of Representatives passed its version of legislation that would renew and extend many of the same tax provisions, including one for IRAs.
The Senate and House differ over how the provisions should be paid for and would have to agree before Congress could pass final legislation.
September 16, 2008
Senate Aide Says IRS Could Tighten Rules on Nonprofit Hospitals
A top aide to U.S. Sen. Charles E. Grassley has said the Internal Revenue Service currently has the authority to tighten the requirements on nonprofit hospitals for retaining their tax-exempt status. But she said the senator also is considering legislation to achieve that end.
Theresa Pattara, a counsel to the Senate Finance Committee, where Senator Grassley is the ranking Republican, made her comments last week to the American Health Lawyers Association. The definitions of how much “community benefit” hospitals must provide were loosened by the IRS in 1965, she said.
Senator Grassley has repeatedly expressed concern that nonprofit hospitals are operating too much like for-profit entities and turning away too many uninsured and under-insured patients. A 2007 report by the IRS estimated that 79 percent of the tax-exempt hospitals spent 10 percent or less of their revenues on care for those who could not or did not pay.
The announcement is the latest indication that Mr. Grassley’s appetite for tighter regulations for tax-exempt organizations will continue after the November elections. Last week, the senator announced he would push for a new financial disclosures for colleges and universities as part of the revised Form 990, which nonprofit groups must fill out beginning next year.
In addition, Mr. Grassley recently sent extensive questionnaires about the business practices of two medical centers, following press accounts that they were not fulfilling their charitable roles.
While Senator Grassley could still push for legislation to tighten regulations for tax-exempt hospitals, he hopes that the new reporting requirements and increased scrutiny will lead medical organizations to “take serious steps to self-correct” the problems, said his spokeswoman, Jill Gerber.
September 15, 2008
Nonprofit Advocates Can Rate Congressional Candidates
People rate books, videos, and consumer products online. Why not political candidates?
The V3 Campaign, a project that asks Congressional candidates what they would do to strengthen nonprofit groups, has started publishing the answers on its Candidate Response Blog and asking readers to rate them with one to five stars.
The site has now published responses from 14 candidates in nine states, who were asked to:
- Describe their personal and professional experiences with nonprofit organizations.
- Provide three specific ways in which, if elected, they would collaborate with and strengthen the nonprofit world.
Only a few people have rated the answers so far, but for what it’s worth the top-rated candidates are Chellie Pingree, a Democratic candidate for the House of Representatives in Maine, and Sen. Susan Collins, a Maine Republican who is running for reelection (both got an average of four stars from two voters).
The V3 (for Voice, Value, Votes) Campaign was started by Robert Egger, president of D.C. Central Kitchen, an anti-hunger group in Washington, as a way to strengthen the political voice of nonprofit groups. He is asking state nonprofit associations and individuals to help quiz candidates in their states.
September 14, 2008
New York Creates Cabinet Position for National and Community Service
New York Gov. David A. Paterson announced that he has created a cabinet position for national and community service.
He said he had elevated Susan Stern, chair of the State Commission on National and Community Service, to the position — and asked her to produce a report within 90 days on ways to make New York “a national leader for service and volunteerism.”
“We all know that true civic engagement will require more than short-term plans,” he said in a statement. “We must inspire lifelong commitments from our citizens.”
Governor Paterson made the announcement to coincide with the ServiceNation Summit, a two-day conference on public service held in New York at the end of last week. He said the state had also posted a new Web site to help match people with volunteer opportunities.
California Gov. Arnold Schwarznegger created a similar cabinet position last February, the Secretary of Service and Volunteering. Speaking to the ServiceNation Summit by video, he congratulated Mr. Paterson for following in his footsteps.
Senator Dodd Introduces Community-Service Bills
Sen. Chris Dodd, Democrat of Connecticut, announced that he and two colleagues have introduced two bills to provide new incentives to encourage high school students and people age 55 and over to volunteer or work for the public good.
The Semester of Service Act would allow juniors and seniors in high school to earn academic credit by spending at least 70 hours over 12 weeks on community service. Federal grants would be available to school districts or nonprofit groups to oversee the projects.
The Encore Service Act would offer stipends and education grants to people 55 years and older who work to help “high-need communities.” It would also create an Encore Fellows Program to place older Americans in one-year management or leadership posts in nonprofit groups or public agencies and a Silver Scholarship Program to offer scholarships of up to $1,000 to older Americans who volunteer for such groups.
The bill would also expand the number of people who qualify for the federal government’s existing volunteer programs for older people — Foster Grandparents, Senior Companions, and RSVP. It would lower the age limit for Foster Grandparents and Senior Companions from 60 to 55 and open the programs to people whose incomes are 200 percent above poverty level (up from the current 125 percent).
Senator Dodd drew up the bill with Sens. Thad Cochran, Republican of Mississippi, and Edward Kennedy, Democrat of Massachusetts.
Senator Dodd, who speaks often about his experience as a Peace Corps volunteer, announced the two bills at the ServiceNation Summit, a two-day conference on public service that took place in New York at the end of last week.
He said his bills complemented the Serve America Act, legislation announced last week by Sens. Orrin Hatch and Edward Kennedy that would expand the country’s national and community-service programs.
September 12, 2008
IRS Prepares to Ask Colleges About Compensation, Other Issues
An Internal Revenue Service official announced yesterday that the agency would soon be sending a questionnaire to roughly 400 colleges and universities to collect information on their executive compensation, endowments, and unrelated business income.
The survey had been scheduled as part of the agency’s fiscal year 2008 work plan, and is meant to identify how higher-education institutions are currently reporting financial data and if there are gaps in information that need to be filled in, said Steven J. Pyrek, an IRS spokesman.
The announcement comes less than a week after a spokesman for Sen. Charles E. Grassley, an Iowa Republican, told The Chronicle that he would like to see a new Form 990 tax schedule that would be specifically geared to colleges and universities and would require more reporting of colleges’ costs and student populations.
Biden's Average Annual Charitable-Gift Total: $369
Sen. Joe Biden and his wife, Jill, have given an average of $369 per year to charities during the past decade, according to tax returns posted today to Sen. Barack Obama’s campaign Web site.
Senator Biden, the Democratic nominee for vice president, claimed $995 in charitable gifts in 2007 on the joint return with his wife. That figure is 0.3 percent of the couple’s claimed income of nearly $320,000.
The 2007 contributions were significantly higher than the couple’s gifts in previous years, which ranged from $120 to $380.
By comparison, Sen. John McCain, the Republican Presidential nominee, in 2007 reported $405,409 in total income and contributed $105,467, or 26 percent of his total income, to charity.
Sen. McCain files a separate return from his wife, Cindy. The totals do not include Ms. McCain’s income or charitable contributions.
Sen. Obama, and his wife, Michelle, donated $240,000 in 2007, or about 5.7 percent of the couple’s $4.2-million in reported income.
Mr. Biden has been rated as the least wealthy U.S. Senator.
Alaska Gov. Sarah Palin, Mr. McCain’s running mate, has not yet made public her tax returns.
September 10, 2008
IRS Releases New Form 990-EZ
The Internal Revenue Service today released the latest version of its Form 990-EZ, the short version of its informational tax form for groups with 2008 receipts of less than $1-million.
The tax agency said the new form — and its related instructions — is similar to earlier versions of the Form 990-EZ, although it includes updated schedules that coincide with the new Form 990.
Both the new Form 990 and the new Form 990-EZ take effect for the 2008 tax year.
As part of the phase-in of the new forms, the IRS has significantly raised the filing threshold for the longer Form 990, which had previously been set at $100,000.
For the 2008 tax year, groups with receipts of less than $1-million are eligible to file the shorter Form 990-EZ.
That threshold drops to $500,000 for the 2009 tax year, according to the IRS.
The new release comes less than one month after the IRS finalized the instructions for the redesigned Form 990, which is getting its first significant update in more than 25 years.
Senator Requests New Disclosure Requirement for Colleges
Washington
Sen. Charles E. Grassley Tuesday called on officials at the Internal Revenue Service and the U.S. Treasury Department to develop an addition to the Form 990 tax return that would be specifically geared to colleges and universities.
The new tax form, which he requested during a Capitol Hill briefing on college costs and endowment spending, would require institutions to report information about their student populations and costs, he said in his remarks.
The current Form 990, which applies to all nonprofit institutions, just received an overhaul that goes into effect for the 2008 tax year.
But Mr. Grassley said colleges should receive an additional schedule of disclosure requirements, which he said would be similar to a form recently devised for nonprofit hospitals.
September 08, 2008
Lawmakers Take on College Endowments
Sen. Charles E. Grassley, Republican of Iowa, and Rep. Peter Welch, Democrat of Vermont, may not typically have a lot in common politically. But they share a common concern over college costs in an era when many higher education institutions are accruing multibillion-dollar endowments.
Mr. Grassley and Mr. Welch are today holding a discussion on Capitol Hill to discuss just those issues, as well as a proposal to require colleges to spend 5 percent of their assets each year.
The problem, according to Mr. Grassley and Mr. Welch, is that colleges and universities are benefiting from their tax-exempt status and the investment returns on enormous endowments at a time when middle-class and low-income families are struggling to pay fast-rising costs of tuition.
In addition to the tax benefits, many colleges and universities receive federal grants for research, Mr. Grassley adds.
“Given the impressive investment returns of college endowment funds, even in years of economic downturn and as tuition has steadily increased, Congress would be remiss if it didn’t question what benefits tax-exempt colleges and universities provide in return for all of the federal benefits they receive,” he said in his opening remarks today.
New Tax-Exempt Groups Get a Pass on Some Paperwork
While some established tax-exempt groups may consider the Internal Revenue Service’s new reporting requirements a major headache, new organizations applying to for charity status may see a silver lining in the more extensive Form 990.
Under previous rules, groups applying for charity tax status first had to get an “advanced ruling” from the federal tax agency by filing a statement that the nonprofit expected to get money from enough different sources to avoid being classified as a private foundation. After five years, those groups have had to apply for a final ruling on their tax status by filing more paperwork — Form 8734 — to show that they met the so-called public-support test.
Under the new regulations, the IRS will no longer require the five-year review for organizations. Instead, the agency states, the new 990 will give the agency enough information to determine if a group is a public charity or private foundation. In addition, new organizations will retain their charitable tax status for their first five years regardless of actual sources of donations they receive during that time.
A press release from the IRS explains that 95 percent of new applications meet the standards.
“Given the high ‘recognition’ rate and the redesigned Form 990, it makes sense to eliminate the burdensome advance-ruling process” said Lois G. Lerner, director of the IRS Exempt Organizations division, in a written statement.
Magazines Debate Palin Remark
Gov. Sarah Palin’s remarks about community organizers during the Republican National Convention last week continues to rile the nonprofit world, sparking a debate on The Chronicle’s Government and Politics Watch.
Partisan publications are also taking up the fight.
The liberal Nation magazine provides a thorough defense of community organizing, arguing it is a bedrock principle of American life dating back to the Boston Tea Party.
“At a convention whose theme was ‘service,’ GOP leaders ridiculed organizing, a vital kind of public service that involves leadership, tough decisions, and taking responsibility for the well-being of people often ignored by government,” says co-authors Peter Dreier, professor of political science at Occidental College, and John Atlas, president of the National Housing Institute.
The conservative Weekly Standard, however, says Ms. Palin was not insulting anyone.
“Sarah Palin wasn’t denigrating the work of community organizers,” writes Brian Faughnan, a Republican lobbyist, on the magazine’s blog. “She was simply making the point that it’s not something so utterly selfless and amazing that a presidential candidate would focus so much attention on it.”
What do you think? Join the debate here
September 05, 2008
Charity Protests Remark by Sarah Palin
A civil-rights group and others are protesting Alaska Gov. Sarah Palin’s jab at community organizers during her speech at the Republican National Convention, where she accepted the nomination for vice president.
Defending herself against those who say she has little experience in government, Ms. Palin described her work as mayor of a small town, saying, “Being a mayor of a town is like being a community organizer but with responsibilities.”
The line, which was a thinly veiled attack on Sen. Barack Obama’s previous job as an advocate for poor neighborhoods in Chicago, drew laughter from convention delegates, but anger from others.
Wade Henderson, chief executive of the Leadership Conference on Civil Rights, responded in a press statement: “We’re a nonpartisan coalition but we do take exception when anyone disparages the vast contributions of community organizers to American society.”
Mr. Henderson pointed out the work of several famous people who have helped coordinate volunteers and activists — Benjamin Franklin, Clara Barton, and Martin Luther King, Jr.
“Nothing is done in a vacuum. Someone has to organize it to get it done. That is the simple and great role of a community organizer,” he said.
Liberal blogs also attacked Ms. Palin for her comment.
“I always thought that community organizers — people who volunteer their time, money, and ability to help others — were like small time mayors but they actually accomplish something meaningful,” an anonymous writer says on the Daily Kos, a left-leaning political Web site.
What do you think? Do you object to Ms. Palin’s remarks? Or is it simply political rhetoric?
September 04, 2008
Republican Platform Includes Plank for Religious Social-Service Groups
The Republican National Committee, in its official 2008 platform, is reinforcing its stand that religious organizations providing social services be able to participate fully in government programs without having to downplay their beliefs or become subject to government hiring practices.
The platform, approved as part of Republican National Convention in St. Paul, Minn., says attempts by the government to impose rules on hiring practices amount to religious discrimination.
“We affirm every citizen’s right to apply religious values to public policy and the right of faith-based organizations to participate fully in public programs without renouncing their beliefs, removing religious objects or symbols, or becoming subject to government hiring practices,” the platform says.
The party also calls for the permanent discontinuation of the federal estate tax, reaffirms the right of charities to be exempt from taxes, and commends colleges that are directing an increased percentage of their endowments to lowering tuition costs for students.
Earlier: Democrats Propose Federal Funds for Charities.
September 03, 2008
Key Senator Raises Questions About Two Hospitals
Sen. Charles E. Grassley, Republican of Iowa, is turning up the heat on two tax-exempt hospitals, demanding information about their nonprofit status, billing practices, and the kinds of patients they serve.
The Iowa lawmaker announced yesterday that he has sent 11-page letters in recent weeks to the M.D. Anderson Cancer Center in Houston, Texas and the University of Chicago Medical Center, with each letter containing more than 40 detailed questions about the operations of the institutions. The Chicago hospital was Michelle Obama’s employer before she took a leave to work on the presidential bid of her husband, Barack.
Both medical centers have been in Mr. Grassley’s sights following press accounts about how they do business. An April article in The Wall Street Journal detailed the difficulties of a leukemia patient who had problems receiving treatment at M.D. Anderson because it required payment in advance for its services.
In August, The Washington Post wrote about the University of Chicago Medical center steering uninsured and under-insured patients to clinics as well as its ties to Mrs. Obama, who is on leave from her job as the center’s vice president of community and external relations.
The inquiries are the latest move by Mr. Grassley to investigate the role and responsibilities of nonprofit groups, including the nation’s charitable hospitals, which he says receive as much as $40-billion in benefits through their exemptions from income, sales, and property taxes; tax-deductible contributions; and tax-exempt bonds. (For more about questions lawmakers are posing, see this cover article from the latest issue of The Chronicle of Philanthropy.)
Mr. Grassley said in a written statement that he was troubled “to hear about two world-renowned hospitals engaging in questionable practices. One made it into the limelight for reportedly requiring a critically ill patient to come up with exorbitant amounts of cash upfront and badgering her for cash during medical treatment. Another appears to be culling the least profitable patients from its emergency room.”
“The answers to the questions I’m asking are critical to understanding whether these hospitals are setting standards for their peers. Those standards might include losing sight of the public service that comes with tax-exempt status.”
The University of Chicago provided a brief written statement responding to Senator Grassley’s letter.
“We have received Senator Grassley’s August 29 letter and we are beginning the process of providing thoughtful and thorough answers to his questions. Much of the information he has requested is already a matter of public record and offers evidence of our vigorous pursuit and commitment to our patient care, education, research, and community missions.”
Officials at M.D. Anderson said they would respond fully to Mr. Grassley. They said they agree that the problem of the uninsured and under-insured is a major concern, especially “because cancer is a catastrophic illness, is very expensive to treat, and is rising in incidence as our population ages and grows.”
September 02, 2008
Bill to Increase Mileage Deduction for Volunteers Gains Momentum in Senate
A key Senator is making a push in Congress for legislation that would increase the tax deduction for people who use their automobiles as part of their volunteer work.
Sen. Charles E. Grassley, the senior Republican on the Senate Finance Committee, has announced that he supports a bill introduced in July that would help volunteers with the mileage rate. The measure is one of a dozen that are now pending that would change the rate in some way.
Under current federal law, volunteers who drive their cars for charitable purposes may deduct 14 cents a mile for their car costs (or be reimbursed by a charity at that rate without the payment’s being subject to federal income tax).
A growing number of members of Congress have said the rate is too low, especially as gas prices have climbed in recent months.
The bill that Mr. Grassley has endorsed — the Fair Deal for Volunteers Act — would allow the Internal Revenue Service to continually adjust the mileage rate for charitable activities for inflation and other costs without seeking Congressional approval, as the tax agency already does for business, medical, and moving expenses.
The current business rate is 58.5 cents per mile; the medical and moving rate is 27 cents.
“People who volunteer for charity aren’t out to make money, but they shouldn’t lose a lot of money in the process,” Mr. Grassley said in a statement. “Driving a car is more expensive than ever, and driving is critical to a lot of volunteer activities.”
He added: “It makes sense to give the IRS the flexibility to set mileage rates for charity work. This legislation will encourage volunteering and streamline this piece of tax administration for taxpayers.”
The Fair Deal for Volunteers Act (S 3246), which is now pending in the Senate Finance Committee, was introduced in July by Sen. Benjamin L. Cardin, a Maryland Democrat. The bill is also sponsored by Sens. Maria Cantwell, a Democrat from Washington; Patrick J. Leahy, a Vermont Democrat; Barbara A. Mikulski, a Maryland Democrat; and Olympia Snowe, a Republican from Maine.
Mr. Grassley said he encouraged the Senate supporters of the bill to consider adding a provision to the measure that would allow charities to reimburse volunteers at the same rate as business expenses without creating taxable income for volunteers.