Archive for the ‘Legal, Legislative & Tax’ Category
Article on NPR Regarding Proposed Changes in Charitable Deductions
Posted by JBA in Legal, Legislative & Tax on March 3rd, 2011
I am passing along this article, which was brought to my attention by another fundraising consultant in our firm. The story, written by Elizabeth Blair, appeared February 17, 2011 on the NPR iPhone Application. Charitable Deduction Limit: Bad For Art Nonprofits?
As professional fundraising consultants it is important for us to stay ahead of the curve so we can assist our clients in helping to assess the fundraising environment. Our firm’s involvement as a member of the Giving Institute helps provide additional value to our clients. We feel that it is important for nonprofit leaders to realize the significance of this legislation, so they can meet and voice their opinons with their local representatives of Congress. . In an effort to reduce the deficit, President Obama hopes to limit the charitable deduction for the top income bracket. That is, wealthy donors who itemize would not be able to deduct as much from their income to owe less in taxes. Charities — which are already hurting from the economic downturn — are worried this will discourage potential donors.
Something Nonprofit Organizations Need to Know
Posted by JBA in Legal, Legislative & Tax, Major Gift Solicitation on February 15th, 2011
The Chronicle on Philanthropy yesterday, featured an article titled, Budget Plan Brings Big Changes to Tax Incentives for Donors. President Obama is proposing to sharply limit the value of charitable tax breaks for wealthier individuals for the fiscal year 2012. ”For too long we have tolerated a tax system that’s a complex, inefficient, and loophole-riddled mess,” President Obama wrote. I believe it is important for all nonprofit leaders to read this document, as legislation could significantly impact any major gift effort.
Questions About Fundraising Issues and Best Practices?
Posted by JBA in Boards & Leadership, Campaign Planning & Management, Capacity Building, Database Management, Donor Cultivation, Fundraising in a Recession, Legal, Legislative & Tax, Major Gift Solicitation, Planned Giving, Prospect Research on February 2nd, 2011
As a fundraising consultant, I am often asked questions regarding the financial development process. Many of these questions can be answered by going to the Jeffrey Byrne & Associates, Inc. website and clicking on News and Resources. This displays a list of hundreds of free downloadable articles written by professional fundraising consultants over the last ten years on a multitude of fundraising topics.
Rolling Over an IRA: A Terrific Year-end Opportunity
Posted by JBA in Donor Cultivation, Legal, Legislative & Tax, Stewardship on December 17th, 2009
I recently returned from a visit with a client in New Hampshire where I was informed that a donor had recently made a second gift to the capital campaign for $50,000 and did so through an IRA Rollover. You may still have time to share this terrific opportunity with a select group of your prospects and generate a lovely gift for your organization.
As you may have heard, The Emergency Economic Stabilization Act of 2008 included a provision that extended the availability of the IRA Rollover through December 31, 2009. This inclusion, included in the Pension Protection Act of 2006, had previously expired at the end of 2007 but was extended by then President Bush.
Here are the details
The IRA Rollover allows individuals who are at least 70-1/2 to make tax-free distributions of up to $100,000 from an IRA to their favorite charity, subject to the following qualifications:
- The donor must be 70-1/2 or older at the time of distribution.
- Limited to $100,000 per taxpayer, per year. A married couple can donate up to $200,000 provided each spouse owns at least one IRA and can make a qualified charitable distribution of $100,000 from their plans.
- Gifts must be outright. The contributions cannot be used to fund gift annuities or charitable remainder trusts
- Applies only to IRA’s, not other forms of retirement plans such as 401(k), 403(b), etc.
- Gifts cannot be made to donor advised funds and supporting organizations, including most private foundations.
- Gifts must be made directly from the IRA to the charity.
A New Way to Stimulate Social Enterprise?
Posted by JBA in Fundraising in a Recession, Legal, Legislative & Tax on August 19th, 2009
By Rita Galowich
President, Fund Inc
A JB&A Strategic Partner
Rita Galowich
Last Monday, August 10, the Chicago Tribune carried an article on the formation of a new legal business entity in Illinois: LC3’s. These are for-profit businesses with a strong social leaning that accept program-related investments. Investors to an LC3 can earn a return and hold equity in the company. LC3’s are not tax exempt.
This type of business comes at a perfect time in the state of Illinois, when we are faced with the possibility of tremendous cuts to social service programs due to the huge state budget deficit. If these new businesses can be successful they will provide an alternative way to serve areas currently being served by non-profit organizations that may be in jeopardy.
I see this as a most creative way to maximize social enterprise opportunities in our state at a time when funding has become extremely difficult to come by. What do you think?