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May 14, 2008

From The Chronicle: IRS Denies Tax Status to Group That Spends Too Little on Charity

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, The Chronicle of Philanthropy reports.

Wednesday May 14, 2008 | Permalink

Comments

1. It’s about time the IRS stopped groups claiming to be charities to be shut down and their tax exemption cut off. The IRS needs to focus on fund raising expenses as well.When $100 bottles of wine and gourmet meals are used to “greasse the wheels” or the president of the charity uses donoor money to go to Europe on a “fund raising mission” ( never raises any funds) then that is income for the president and not a fund raising expense. All donors should receive financial disclosures as well so that they can see the amount of money that actually reaches the use the donor intended it for. Further, donors need to be informed that their donation can be used for fund raising activities as opposed to ,say, cancer research.

   — Brent    May 14, 02:11 PM    #

2. Fraud and mis-use and out right wrongful use of charitable funds have grown to be a MAJOR problem in the past few years, its about time that IRS takes a much more “ hands on approach “ to policing the non-profit sector.

   — Paul Dolnier, MST    May 14, 02:47 PM    #

3. It’s about time if you ask me. I hope this is the beginning of the government’s attempts to tighten exemption policies for nonprofits. The internal fraud stories that are surfacing in the media is bringing concern to all donors, including those who support ethical and value-driven charities.

   — Ken D. Grunke    May 14, 06:11 PM    #

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