Continued Scrutiny of Nonprofit's Role in Politics

BNA Money and Politics (subscription required) reported that the tax-exempt status of charities and other nonprofits will continue to be examined into 2007. On Tuesday the Urban Institute sponsored a forum geared toward nonprofits, at which a Senate Finance Committee aide remarked that the committee will investigate the role of tax code Section 501(c)(3) and 501(c)(4) organizations in politics, including hospitals and universities. Nonprofit lobbyists told BNA Oct. 4 that it may be easier to move on nonprofit legislation in 2007 because some of the main detractors of charitable reform may be out of Congress or in a lessened position to oppose such legislation. However, some of the remaining issues to be addressed on the subject are more difficult, and more likely to generate resistance in the community, including provisions on donor-advised funds and supporting organizations, they said.
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