Policy Update

New Treasury Guidelines Show Improvement, Some Concerns Remain

10/04/2006

Source: Independent Sector

New Treasury Guidelines Show Improvement, Some Concerns Remain

According to practitioners, the Treasury Department's revised "Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-based Charities" encourage charitable organizations to take steps to ensure they are not abused by terrorist groups, however, exclude burdensome provisions that drew concern from the charitable community. 

In particular, the guidelines include language explicitly saying that charities are not agents of the U.S. government.  Independent Sector President and CEO meanwhile told BNA that, although the IRS has made improvements, "there continue to be areas where the guidelines do not reflect best practices agreed upon by all charitable organizations." 

In particular, she said the guidelines misquoted a recommendation of the Panel on the Nonprofit Sector.  Source: BNA Daily Tax Report

See the revised guidelines (pdf).

Advocacy Group Asks IRS to Revoke Hospital's Tax-Exempt Status

Los Angeles-based Consejo de Latinos Unidos is calling on the Internal Revenue Service to revoke Provena Covenant Medical Center's federal tax-exempt status, following a decision by the Illinois Department of Revenue (IDOR) to revoke its state tax-exemption. 

IDOR ruled that Provena Covenant does not provide sufficient charity care and engages in aggressive collection practices.  In an October 3 letter to the IRS, Consejo de Latinos Unidos wrote, "We are sick and tired of billion dollar nor-for-profit hospital systems that treat the uninsured and the community like manure and yet pay nothing in taxes." 

Source: BNA Daily Tax Report