How much does your nonprofit rely on donations from wealthy individuals? Many nonprofit leaders are asking themselves that very question right now. Once again, calls from both Democrats and Republicans threaten to limit the charitable deduction. In his proposed budget for fiscal year 2015 (which starts October 1, 2015), President Obama caps all itemized deductions …
Posts Categorized: Policy
GiveWell Focuses on Evidence-Based Giving
Would you buy a car without a thorough vetting? For most the answer is no. So why donate to a charity without a proper investigation? Last month we posted a list of the main questions to ask before you donate. But as the end of the year approaches, many potential donors tell us that they …
Should Social Welfare Organizations Be Treated More Like Charities?
Currently, the IRS requires 501(c)(4) social welfare organizations to be “primarily engaged” in promoting social welfare. This means social welfare organizations can spend a minority of their total expenditures on political campaign activity without losing their exemption. As these organizations are not required to publicly disclose the sources of their funds, it also means that …
Government Funding to Require Quantifiable Results?
Here’s a novel idea: When you pay for something, expect something in return. Harriet McDonald, Executive Vice President of the Doe Fund in New York, is challenging governments to do just that. In her Chronicle of Philanthropy article, McDonald argues that governments currently pay nonprofits and other companies to provide social services without ensuring that …
IRS Considers Reevaluating Politically Minded 501(c)(4) Orgs
As we posted here and here, advocates for campaign finance reform have been demanding for the past year that the IRS investigate politically motivated “social welfare” or 501(c)(4) organizations. These calls to action have finally paid off. Lois Lerner, the director of the IRS Exempt Organizations Unit, stated last week that the “IRS is aware …
Do You Dislike Charity Ratings?
Since the advent of Charity Navigator and other websites that rate charities, there has been an increasing push for charities to meet their arbitrary standards. Voices critical of charity ratings rarely reach a national audience. But now a prominent critic has reached a national forum thanks to The Huffington Post. In a recent editorial, Founder …