Policy Update
IRS Change on Donor Reporting
On Monday, July 16, the Treasury Department and IRS announced that the IRS will no longer require 501(C) organizations, other than 501(C)(3) and organizations established under section 527, to report identifying information about donors who contribute more than $5,000 in a year. Organizations other than 501(C)(3) or those under section 527 will still need to report identifying information for those who contribute less than $5,000 in a year.
The potential positive outcome of this change includes the ability of the IRS to allocate a greater workforce to guiding nonprofit organizations through new tax law implications, as well as having greater oversight of illegal or fraudulent nonprofit organizations. Potential negative implications include the ability of some organizations, particularly (C)(4) organizations, to have unlimited income from undisclosed donors to fund political campaigns and candidates.
To read the full press release, including summary of policy changes, click here.
House Bill to repeal UBIT
Congressman Mike Capuano (D-MA) has agreed to support H.R. 6037 that would repeal two new unrelated business income taxes (UBIT) regarding transportation benefits for nonprofits and other business operations. The bill was filed by Congressman Conaway (R-TX), and has had bi-partisan support from members of Congress.
Impact of Tax Bill on Charitable Giving
Senators James Lankford (R-OK) and Chris Coons (D-DE) sent Treasury Secretary Mnuchin a letter last week expressing their concern about the new tax law passed last December and its impact on charitable giving. In the letter, the senators asked Secretary Mnuchin to provide them quarterly reports with “any data that is currently available on charitable deductions in tax year 2018 and projections for charitable giving in tax year 2018.”
Click here to read the full letter and learn more about the request.
Vote on Grothman Amendment Regarding NEA and NEH Funding
On Wednesday, the House voted overwhelmingly to defeat a proposal that would have cut the funding for the National Endowment of the Arts and the National Endowment of the Humanities by 15 percent. Congressman Glenn Grothman (R-WI) proposed the amendment that would have cut the agencies’ budget by $23 million in 2019. The final vote resulted in a 297 to 114 defeat for the proposal.
To see how your legislators voted, click here.
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