Posts tagged with: Nonprofit organization

I’m not entirely sure, but it seems a safe bet that Chicago bluesman Willie Dixon wasn’t referring to the Internal Revenue Service when he wrote his classic “Back Door Man.” But, as it turns out, the IRS is serving as a convenient back-door resource for the progressive movement to name and shame donors to causes and organizations opposed by leftist shareholder activists.

The IRS is proposing rules that will grant nonprofit organizations the option of disclosing donors of $250 or more.

Currently, charitable organizations are required to remit a “contemporaneous written acknowledgment” (CWA) to donors contributing $250 or more in cash, goods or services. Donors reference the CWA when filing an IRS 990 form for charitable contributions. The proposed rules would grant organizations the option of collecting donors’ Social Security numbers rather than remitting a CWA, and subsequently sending the donors’ information to the IRS.

Readers shouldn’t take your writer’s word on such an important manner. A more authoritative source is the National Association of Nonprofits, an organization comprised of state associations as well as more than 25,000 individual members, and the U.S. Government Accountability Office. (more…)

t873In a 5-4 decision, the Supreme Court just announced its ruling in favor of Hobby Lobby, holding that, “as applied to closely held corporations, the government’s HHS regulations imposing the contraceptive mandate violate the Religious Freedom Restoration Act of 1993 (RFRA).” The full opinion, written by Justice Samuel Alito, can be read here.

Although there is still much to digest, and although the majority opinion still leaves quite a bit of room for related battles to continue, it’s worth noting that that whatever perceived “narrowness” we see in the decision — confining things specifically to closely held corporations — remains a significant victory, particularly given our culture’s prevailing attitudes about business.

According to HHS, by simply incorporating one’s business in the pursuit of profit — “without in any way changing the size or nature of their businesses” — a company “would forfeit all RFRA (and free-exercise) rights” (quotes from Alito’s paraphrase). The arguments supporting such a view vary, including the principal argument advanced by HHS that corporations cannot “exercise religion.”

Alito dissects this from a variety of angles, and does so rather compellingly. But one of the more noteworthy sections is his refutation of the notion that for-profit corporations aren’t protected by RFRA because they “simply seek to make a profit.” (more…)

hospitalA new provision under Obamacare will fine tax-exempt hospitals via the Internal Revenue Service:

A new provision in Section 501 of the Internal Revenue Code, which takes effect under Obamacare, sets new standards of review and installs new financial penalties for tax-exempt charitable hospitals, which devote a minimum amount of their expenses to treat uninsured poor people. Approximately 60 percent of American hospitals are currently nonprofit.


Guidelines for nonprofits are often misunderstood, says Dimitri Cavalli, and they are sometimes misrepresented by those seeking to quiet churches:

Every so often, there are calls for the federal government to revoke the tax-exempt status of churches. The most common arguments made for taxing churches are that exemptions deny the government important sources of revenue to pay its bills, and that many churches (usually the ones that continue to teach traditional sexuality morality such as the Catholic, Evangelical, and Mormon churches) often abuse their tax-exempt status by violating IRS guidelines that prohibit them from engaging in political activity. The chronic obsession with the activities of the churches in the public square has obscured the fact that they are only a part of the overall nonprofit sector. According to data collected by the National Center for Charitable Statistics (NCCS), there are over 1.5 million registered nonprofit organizations (with combined total assets of nearly $5.7 trillion as of August 2012) in the United States today—many of which are nonreligious institutions and organizations that, like churches, seek to influence public policy despite being tax-exempt.

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