April 5 Senate Finance Committee Hearing on Charities and Charitable Giving: Proposals for Reform

The Senate Finance Committee held a hearing on April 5, 2005, titled “Charities and Charitable Giving: Proposals for Reform.” According to Finance Committee Chairman Charles Grassley (R-IA), the hearing was intended to address noncompliance and tax schemes within the nonprofit sector and to assist in strengthening the charitable sector by considering proposals for legislative reforms that would take meaningful steps to improve governance of nonprofit organizations and curb tax evasion and abuse.

In his opening statement, Sen. Grassley commented that he was particularly concerned about overvaluation of gifts of closely held stock and real and tangible property. He also noted that IRS Commissioner Mark Everson had written to the Finance Committee to observe that no serious review of the laws governing exempt organizations had occurred since 1969. Sen. Grassley stated that it is time for Congress to revisit this area. He explained that it is his hope that the Finance Committee can act on legislative reforms of nonprofit organizations that can be used to offset the costs of the CARE Act, which includes several widely supported proposals intended to increase charitable giving.

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