Nonprofits focusing on tax exemptions and deductions as 2013 nears
December 18, 2012
As 2013 draws closer, nonprofit leaders have a lot on their minds. Writing for The NonProfit Times, Patrick Sullivan explains that many are concerned about the possibility that charitable deductions for some of America's wealthiest donors will diminish
"The charitable sector is an extremely diverse community with different opinions. One area where we've come together is the charitable deduction," Diana Aviv, president and CEO of the Independent Sector (IS), told the source.
In fact, Father Larry Snyder, Catholic Charities USA's CEO, pointed out that the proposed changes impact not only the richest Americans, but also those who give $1,000, $2,000 or $5,000, according to Sullivan. If those people don't receive the same deductions next year, they might contribute less and nonprofits will suffer financially.
At the same time, the Nonprofit Quarterly reported that considering data from 2011, the Internal Revenue Service's (IRS) exempt organization (EO) division
is conducting fewer, but more comprehensive, examinations of tax returns. The IRS also plans to establish new regulations for supporting organizations (SOs) and excise taxes on donor advised funds.
Foundations and organizations that provide annual funding might benefit from nonprofit accounting
software, which can help board members audit funds and make sure amounts are being correctly taxed each year.