House Ways & Means Committee Examines Tax Exempt Organizations

May 22, 2012 in Contributions, Donors, Influence, IRS, IRS Notes, Nonprofit, Nonprofit Funding, Tax-exempt by Anne

On May 16th, 2012 Diana L. Aviv, President and CEO of Independent Sector, a nonpartisan coalition which mobilizes the nonprofit and philanthropic communities, spoke on behalf of nonprofits to the House Ways & Means Committee: http://www.independentsector.org/ways_and_means_subcommittee_hearing_on_tax_exempt_organizations


Importance of the Nonprofit Sector

  • 1 in 10 workers is employed by nonprofit organizations, amounting to 13.5 million employees in the United States
  • Nonprofit organizations paid nearly $670 billion annually in wages and benefits
  • Nonprofits collect and distribute roughly $300 billion in donations

 

Impact of the Economic Downturn

  • From 2007-09, annual giving declined by almost $30 billion
  • 88% of nonprofit organizations surveyed in 2010 were operating below break even
  • 78% of nonprofits experienced an increased need for services by the public in 2010

 

How Congress Might Enable Increased Support of Charitable Organizations

  • Explore ways to increase incentives for charitable donations
  • Reinstate the charitable giving incentives in the Tax Extenders Package: http://www.independentsector.org/tax_extender
  •  Continue to work with Independent Sector, the IRS, Keep Me Tax Free, and other organizations to ensure good governance and transparency by nonprofits

In her conclusion, Ms. Aviv states: “As the Subcommittee works to provide oversight of America’s tax exempt organizations, …we will also continue working to educate lawmakers & their staff about the contributions nonprofit organizations make to communities every day and the impact of proposed policies on our ability to continue making those contributions.”

 

For more information on these and other nonprofit issues, contact Keep Me Tax Free, LLC at http://keepmetaxfree.com/