Nonprofits push for change

More than 100 nonprofits from across the U.S. have signed a letter urging lawmakers to pass legislation that would encourage giving and close loopholes in the current law.

Led by Independent Sector, a Washington, D.C.-based coalition of nonprofits and foundations, the charities are asking Congress to pass H.R. 4297, a bill containing provisions similar those in the Senate’s Tax Relief Act of 2005.

One provision of the bill would encourage giving by allowing people to make charitable donations from their individual retirement accounts without having to report the money as taxable income.

Another would allow taxpayers who claim the standard deduction, rather than itemizing deductions, to deduct portions of their charitable giving on their tax returns.

The bill would also close tax loopholes to curb abuses of charities, and would establish penalties for people who exploit nonprofits for personal gain.

The package includes recommendations similar to those proposed by the Panel on the Nonprofit Sector, a group established by Independent Sector to provide recommendations for reform.

“These charitable incentives will encourage giving by all Americans to help meet community needs,” Diana Aviv, president and CEO of Independent Sector, said in a statement.

“Coupled with reforms to stop real abuses of charitable resources, these provisions would take significant steps to strengthen the charitable organizations that are so vital to our country,” she said.

Leave a Response

Your email address will not be published. All fields are required.