NPQ - Spring Issue - A Survey of Proposals for the Further Federal Regulation of Nonprofits

NPQ - Spring Issue - A Survey of Proposals for the Further Federal Regulation of Nonprofits: "Regulatory Landscape 2005
A Survey of Proposals for the Further Federal Regulation of Nonprofits
by the editors
The U.S. Senate Finance Committee held hearings on June 22 and July 22 of 2004 to consider what might be wrong with the regulatory system for foundations and the nonprofit sector, meeting under the title �Charity Oversight and Reform: Keeping Bad Things from Happening to Good Charities.� Ranking Democratic Finance Committee member Max Baucus (D-Montana) set the tone when at the first hearing he stated: �It�s obvious from the abuses we see that there�s been no check on charities. Big money, tax free, and no oversight have created a cesspool in too many cases.�
The June 22nd hearing featured mystery witnesses testifying under the pseudonyms �Mr. House� and �Mr. Car� (as if these were protected mafia witnesses) with their voices and appearances obscured. �Mr. Car� testified about vehicle donation scams, and soon after the Finance Committee drafted legislation to reduce vehicle donation deductions to the sale amount realized by the charity (not the �Blue Book� value). The very quick action changing deductions for vehicles, starting January 1, 2005 is projected to save $3.5 billion for the treasury. It shows the Senate Finance Committee is ready to get Congress to act on charitable reform - at least when it increases revenue. "