Grassley on “Strengthening the Nonprofit Sector”
Today, Senate Finance Committee Chairman Chuck Grassley penned a column in The Hill, outlining “key areas of concern” with regard to the charitable sector. The list – excessive compensation perks, nonprofit groups acting more like for-profit businesses than charities, politically active nonprofits, lack of financial transparency, nonprofit hospitals, etc. – is certainly nothing new. For example, in a June 1, 2006 letter to the IRS, Grassley discussed some of the same issues, calling for "comment and in some cases stepped-up enforcement" from the agency.
In today's column, Grassley said “Congress [must] demand transparency, accountability and good governance from the nonprofit sector. Nonprofit organizations must earn the privilege to keep their tax-exempt status. Tightening the rules and regulations governing the nonprofit sector will help repair the breach of trust that threatens to tarnish even the most reputable charities in America.” To this end, Grassley reminded us that “working with more than 100 charitable groups, I have developed a legislative package of reforms to strengthen America’s deeply rooted tradition of charitable giving and to renew the federal government’s covenant with philanthropic good works for the 21st century.” Just last month, the Senate Finance Committee did approve some of Grassley's reforms.
Grassley also wrote, “I’m not so naive as to believe that enacting a new law will fix these problems overnight, but it’s also clear that merely enforcing current laws won’t get the job done. That’s why I’m working in cooperation with the nonprofit sector and the Internal Revenue Service to build a consensus for balanced, comprehensive reforms that will help weed out bad actors and bad practices that give the nonprofit sector a black eye.”
In today's column, Grassley said “Congress [must] demand transparency, accountability and good governance from the nonprofit sector. Nonprofit organizations must earn the privilege to keep their tax-exempt status. Tightening the rules and regulations governing the nonprofit sector will help repair the breach of trust that threatens to tarnish even the most reputable charities in America.” To this end, Grassley reminded us that “working with more than 100 charitable groups, I have developed a legislative package of reforms to strengthen America’s deeply rooted tradition of charitable giving and to renew the federal government’s covenant with philanthropic good works for the 21st century.” Just last month, the Senate Finance Committee did approve some of Grassley's reforms.
Grassley also wrote, “I’m not so naive as to believe that enacting a new law will fix these problems overnight, but it’s also clear that merely enforcing current laws won’t get the job done. That’s why I’m working in cooperation with the nonprofit sector and the Internal Revenue Service to build a consensus for balanced, comprehensive reforms that will help weed out bad actors and bad practices that give the nonprofit sector a black eye.”
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