The Senate Finance Committee has issued a release in which it summarizes the tax provisions included in the Emergency Economic Stabilization Act of 2008. Charitable components include the IRA Rollover Provision, Basis Adjustment to Stock of an S Corporation Making Charitable Contributions of Property, Enhanced Charitable Deduction for Qualified Computer Contributions, Enhanced Charitable Deduction for Food Inventory, Enhanced Charitable Deduction for Contributions of Book Inventory to Schools, Temporary Suspension of Limitations on Charitable Contributions, Increase in Standard Mileage Rate for Charitable Use of Vehicles, and Exclusion from Income of Mileage Reimbursements for Charitable Volunteers.

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On October 3, 2008, Congress passed and President Bush signed into law the Emergency Economic Stabilization Act of 2008. Of all the last minute sweeteners added to the Senate version of the bill, one of the sweetest for charitable organizations and those who support them was an extension of the charitable IRA rollover provisions that expired at the end of 2007. In this article, The Sharpe Group reviews these provisions and offers resources that can help organizations and advisers assist their donors and clients to take advantage of this renewed giving opportunity.  MORE »

Treasury has issued Notice 2008-90 in which it announces that the Internal Revenue Service (Service) and the Treasury Department are studying the computation of the deductible amount and adjustment to cost of goods sold for charitable contributions of inventory property that constitute qualified contributions as defined in § 170(e)(3)(A) of the Internal Revenue Code.  MORE »

On a 74-25 vote, the Senate has passed H.R. 1424 which combines provisions similar to the financial bailout package that failed in the House on September 29 with the provisions of H.R. 6049, a Senate-approved package that includes an AMT patch; renews tax incentives for businesses, individuals, and renewable energy; and provides disaster-related tax relief. The charitable provisions found in H.R. 6049 remain intact. The measure now moves on for consideration by the House.

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In the September 19, 2008 issue of Exempt Org Update: Tax Talk Today Webcast: Preparing for the New Form 990; Western Conference on Tax Exempt Organizations; New EO On-line Mini-Courses Now Available; Register Now for Fall Workshops for Small and Mid-Sized 501(c)(3) Organizations; Priority Guidance Plan Issued; IRS Releases Interim Report on 501(c)(3) Bonds Project; and Disaster Relief for Texas and Louisiana.  MORE »

The National Heritage Foundation has issued a press release in which it responds to a recent $9 million adverse jury award in a case involving a charitable split dollar plan and announces its plans to appeal the verdict.  MORE »

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2008-49 indicates the applicable federal rate under section 7520 for October 2008 is 3.8%; down 0.4% from the September and August rates of 4.2%.  MORE »

Writing on behalf of the American Council on Gift Annuities (ACGA) and the National Committee on Planned Giving (NCPG), New York attorney Conrad Teitell expresses opposition to the proposed Charitable Lead Trust regulation that requires the payments to the charitable beneficiary to consist of different classes of income determined on a pro rata basis.  MORE »

The McAllen, Texas law firm of Garcia & Martinez has issued a press release announcing a $9 million jury verdict against the National Heritage Foundation in the 404th District Court, Cameron County (Brownsville), Texas. According to the release, National Heritage Foundation changed the beneficiaries of three multi-million charitable split dollar life insurance policies from the donors' children to itself without the donors' knowledge or approval.  MORE »

Gifts of life insurance policies to not-for-profit organizations can benefit both the organization and the donor, the latter in the form of an often sizeable income tax charitable deduction. However, under the requirements of the Pension Protection Act of 2006 (PPA),
determining the fair market value of policies requires the help of an appraiser with the appropriate expertise and experience. In this article from the Journal of Accountancy, appraiser Alan Breus, CLU, ChFC reviews current appraisal requirements and appraiser qualifications.  MORE »