If your organization enjoys tax-exempt status, you might be interested in a U.S. Senate Committee on Finance staff report issued this week.
The report may be of interest to, for instance, hospitals, charities, labor unions, credit unions, and schools that require donors to donate before buying good seats to the game.
The recommendations in the report are just that: recommendations. They are simply, according to the report, “options that Finance Committee members may wish to consider as they work towards reforming our nation’s tax system.”
But recommendations sometime have a way of finding their way into law.
Here’s a sample from the report:
“Some think more should be done to monitor charities, for example to ensure that they are not spending a large share of their donations on fundraising and large salaries for their founders.”
“Disallow the deduction for charitable contributions that are a prerequisite for purchasing tickets to sporting events.”
“Disallow the charitable deduction for contributions to support collegiate spots teams.”
“Disallow tax-exempt status for certain organizations engaged in business activities, such as credit unions, nonprofit hospitals or certain types of insurance firms.”
“Revise the requirements … in the case of fee-for-service nonprofits or charities, such as nonprofit hospitals and credit counseling agencies.”
“Require tax-exempt hospitals to provide a certain amount of charity care, for example five percent of operating expenses.”
“Eliminate tax-exempt status of professional sports leagues.”
“Deny tax-exempt status to section 501(c)(5) labor unions if members’ dues are used by a union in political campaign(s).”