DOCSLIB.ORG

Information for Impact: Liberating Nonprofit Sector Data by Beth Simone Noveck and Daniel L

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Information for Impact: Liberating Nonprofit Sector Data by Beth Simone Noveck and Daniel L Information for Impact: Liberating Nonprofit Sector Data By Beth Simone Noveck and Daniel L. Goroff 2nd Edition Information for Impact: Liberating Nonprofit Sector Data By Beth Simone Noveck and Daniel L. Goroff* 2nd Edition *The authors wish to acknowledge the invaluable research assistance of Raphael Majma. About the Program on Philanthropy and Social Innovation Through convenings, leadership development initiatives, communications, and strategic partner- ships, the Aspen Institute’s Program on Philanthropy and Social Innovation (PSI) seeks to maximize the impact of social-sector leaders in contributing to the good society at home and abroad. PSI’s Nonprofit Data Project works to promote accessible, accurate, and current information on the U.S. nonprofit sector in partnership with the nation’s top nonprofit data providers — the Foun- dation Center, GuideStar, Center for Civil Society Studies at Johns Hopkins University, Center on Philanthropy at Indiana University, and the Center on Nonprofits and Philanthropy at the Urban Institute. The Nonprofit Data Project wishes to thank its supporters, the Bill & Melinda Gates Foun- dation, the Charles Stewart Mott Foundation, and the Goldhirsh Foundation. The Program on Philanthropy and Social Innovation also hosts the Aspen Philanthropy Group, an agenda-setting body of foundation, public, and private-sector leaders at the cutting edge of change, and it spurs partnerships and collaborative action among them. Leadership-development initiatives include the American Express Foundation-Aspen Institute Fellowship for Emerging Nonprofit Lead- ers, the Aspen Philanthropy Seminar, and the Seminar for Mid-America Foundation CEOs. PSI’s policy work includes the Impact Economy Initiative, which seeks to strengthen and expand the field of impact investing. The Global Philanthropy Forum serves as a key partner in many of PSI’s efforts. The Aspen Institute’s mission is twofold: to foster values-based leadership, encouraging individu- als to reflect on the ideals and ideas that define a good society, and to provide a neutral and balanced venue for discussing and acting on critical issues. The Aspen Institute does this primarily in four ways: seminars, young-leader fellowships around the globe, policy programs, and public conferences and events. The Institute is based in Washington, D.C.; Aspen, Colorado; and on the Wye River on Maryland’s Eastern Shore, and has an international network of partners. Information for Impact: Liberating Nonprofit Sector Data Table of Contents Foreword .................................................................................................................................... 1 Executive Summary .................................................................................................................... 2 The 990 Opportunity ................................................................................................................. 3 A Note on Assumptions ................................................................................................................ 6 The Forms 990: History and Current Versions ............................................................................ 7 What Is Open Government Data? ............................................................................................... 8 Why 990 Data? .......................................................................................................................... 11 The Life of the 990 ..................................................................................................................... 12 Barriers to Efficient and Timely Filing ....................................................................................... 13 Paper and Electronic: Two Paths, Two Processes ........................................................................ 13 The Publication Process: Transparent, But Not Truly Open ....................................................... 15 Who Uses the 990s Now? ........................................................................................................... 17 Why Liberate 990 Data? ............................................................................................................. 19 Illustrative Uses for Open 990 Data .......................................................................................... 19 Mechanics of Creating an Open 990 Data Platform ................................................................... 23 Technical Issues ......................................................................................................................... 23 The Prospects for E-Filing ......................................................................................................... 23 Pricing Issues ............................................................................................................................. 25 Other Evaluative Criteria .......................................................................................................... 25 Alternative Approaches to Opening 990 Data ............................................................................ 26 Legislative Mandate for E-Filing ................................................................................................ 26 IRS Initiative: Data Digitization and/or Extraction ................................................................... 27 Third-Party Platform ................................................................................................................. 28 A Priori Electronic Filing ........................................................................................................... 29 Recommendation for Creating Usable 990 Data ........................................................................ 30 Translating Open Data into Innovation ..................................................................................... 31 Get a Database Out There ......................................................................................................... 32 Hold Data Dives and Code-a-Thons ......................................................................................... 33 Organize Competitions and Prizes ............................................................................................ 33 Create an App Store .................................................................................................................. 35 Re-Investigate Longer-Term Solutions ....................................................................................... 35 Build Community and Nurture an Ecosystem ........................................................................... 35 Acknowledgments ...................................................................................................................... 37 Endnotes .................................................................................................................................... 39 Appendices ................................................................................................................................. 42 Foreword Nonprofit data have received increased attention sinceInformation for Impact: Liberating Nonprofit Sector Data was first published in January 2013. Authors Beth Noveck and Daniel Goroff and the Nonprofit Data Project at the Aspen Institute’s Program on Philanthropy and Social Innovation are proud to include these developments in this Second Edition. Most notably, a proposal to require electronic filing of the Form 990 was included in the Presi- dent’s Budget for Fiscal Year 2014. This was a truly important development, as the President’s Budget not only includes a proposal to phase in mandated electronic filing for all nonprofits that file the Form 990, but would also require the IRS to release these data in a machine-readable format in a timely manner. These are the central recommendations of this report and we are thrilled to see that our work has had a significant policy impact. Additionally, Congress is engaged in a tax reform effort in which Form 990 e-filing has been noted. As stated in “Tax-exempt Organizations and Charitable Giving: Senate Finance Committee Staff Tax Reform Options for Discussion,” universal 990 e-filing is presented as a positive option for discus- sion. To learn more about the President’s Budget, the Senate Finance Committee Tax Reform Options Paper, and media developments, please refer to Appendices 7, 8 and 9. Much progress has occurred, however, our work is nowhere near complete. As outlined in this report, a real solution to the inefficiencies of nonprofit data must not only be found, but effectively executed. It is our hope that through continued work and collaboration with nonprofit data experts, such as The Urban Institute, Johns Hopkins University, The Foundation Center, Indiana University, and GuideStar, and others in the field, improved nonprofit data transparency will soon become a re- ality. We once again thank our funders and partners in this effort, the Bill & Melinda Gates Founda- tion, the Charles Stewart Mott Foundation and the Goldhirsh Foundation. Cinthia Schuman Ottinger Deputy Director for Philanthropy Programs Program on Philanthropy and Social Innovation The Aspen Institute September 2013 1 Executive Summary This report addresses the challenges to obtaining better, more usable data about the nonprofit sector to match the sector’s growing importance. In 2010, there were 1.5 million tax-exempt organizations in the United
Load more

Recommended publications
  • Mayo Clinic, a Minnesota Corporation
    United States Court of Appeals For the Eighth Circuit ___________________________ No. 19-3189 ___________________________ Mayo Clinic, a Minnesota Corporation lllllllllllllllllllllPlaintiff - Appellee v. United States of America lllllllllllllllllllllDefendant - Appellant ____________ Appeal from United States District Court for the District of Minnesota ____________ Submitted: October 20, 2020 Filed: May 13, 2021 ____________ Before SMITH, Chief Judge, LOKEN and GRUENDER, Circuit Judges. ____________ LOKEN, Circuit Judge. Mayo Clinic (“Mayo”), a Minnesota nonprofit corporation, oversees healthcare system subsidiaries and operates the Mayo Clinic College of Medicine and Science (“Mayo College”). Mayo is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code (IRC), 26 U.S.C. § 501(c)(3).1 After an audit in 2009, the Internal Revenue Service concluded that Mayo owed unrelated business income tax (“UBIT”) on certain investment income it received from the investment pool it manages for its subsidiaries. The IRS issued a Notice of Proposed Adjustment and reaffirmed its position in a 2013 Technical Advice Memorandum. At issue is $11,501,621 in UBIT for tax years 2003, 2005-2007, and 2010-2012. Mayo2 paid the tax and brought this refund action. The issue, briefly stated, is whether Mayo is a “qualified organization” exempted from paying UBIT on “unrelated debt-financed income” under IRC § 514(c)(9)(C)(i). Qualified organizations include “an organization described in section 170(b)(1)(A)(ii) . .” Section 170(b)(1)(A)(ii) describes “an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.” The IRS denied Mayo the exemption because it is not an “educational organization” as defined in 26 C.F.R.
    [Show full text]
  • Line Item Veto and the Tax Legislative Process: a Futile Effort at Deficit Reduction, but a Step Toward Tax Integrity Gordon T
    Hastings Law Journal Volume 49 | Issue 1 Article 1 1-1997 Line Item Veto and the Tax Legislative Process: A Futile Effort at Deficit Reduction, But a Step Toward Tax Integrity Gordon T. Butler Follow this and additional works at: https://repository.uchastings.edu/hastings_law_journal Part of the Law Commons Recommended Citation Gordon T. Butler, Line Item Veto and the Tax Legislative Process: A Futile Effort at Deficit Reduction, But a Step Toward Tax Integrity, 49 Hastings L.J. 1 (1997). Available at: https://repository.uchastings.edu/hastings_law_journal/vol49/iss1/1 This Article is brought to you for free and open access by the Law Journals at UC Hastings Scholarship Repository. It has been accepted for inclusion in Hastings Law Journal by an authorized editor of UC Hastings Scholarship Repository. For more information, please contact [email protected]. The Line Item Veto and the Tax Legislative Process: A Futile Effort at Deficit Reduction, But a Step Toward Tax Integrity by GORDON T. BUTLER* Table of Contents Introduction ...................................................................... 2 I. The Problem of the Deficit and the Budget Process ............... 4 II. The Line Item Veto ...................................................... 21 A. 1995 Congressional Proposals ................................. 21 (1) House Bill 2 and "Enhanced Rescission" ................ 22 (2) Senate Bill 4 and "Separate Enrollment". ............... 24 B. The Line Item Veto of 1996 ...................................... 26 (1) The Act ....................................................... 26 (2) Constitutionality of the Line Item Veto .................. 31 (a) Separate Enrollment Form ............................... 41 (b) Enhanced Rescission Form ............................ 43 (3) Comparison with State Item Veto Authority ............... 52 (4) Critique of the Line Item Veto Act of 1996 ............. 56 m. Are "Tax Expenditures" Expenditures? .........
    [Show full text]
  • "Relief" Provisions in the Revenue Act of 1943
    "RELIEF" PROVISIONS IN THE REVENUE ACT OF 1943 By JAMES E. FAHEY t THE Revenue Act of 1943 1 is an anomaly in the framework of income tax legislation.2 Its most obvious distinction lies in the manner of its enactment. It is the first revenue raising measure ever to be vetoed by a president and the first ever to be passed over veto. The political storm which engulfed Congress and the President over the bill's passage cen- tered in large measure over the so-called "relief" provisions found in the bill. These provisions alternately have been defended as accomplishing the correction of existing inequities in the law and assailed as providing loopholes enabling certain favored individuals and industries to avoid their equitable share in financing the war. A scrutinization of these con- troversial provisions in the light of the situations which they were de- signed to change may serve to focus the issue more clearly for the reader whose opinions are yet to be crystallized. Specifically, the President's veto message ' criticized five "relief" pro- visions in the bill as being special privilege measures. They were the provision for non-recognition of gain or loss on corporate reorganiza- tions carried on under court supervision and the concomitant "basis" provision,4 the extension of percentage depletion to certain minerals which were theretofore denied its use,' a provision making optional to taxpay- ers in the timber or logging business an accounting procedure which would enable them to treat the cutting of their timber as the sale of a capital asset,6 the extension of favored excess profits tax treatment formerly given only to producers of minerals and timber to producers of natural gas,7 and a broadening of the existing exemption of air mail carriers from excess profits taxes.8 t fember of the Kentucky Bar; Lecturer in Taxation, University of Louisville Law School.
    [Show full text]
  • Liberal Construction of Tax Treaties an Analysis of Congressional and Administrative Limitations of an Old Doctrine Herrick K
    Cornell Law Review Volume 47 Article 2 Issue 4 Summer 1962 Liberal Construction of Tax Treaties An Analysis of Congressional and Administrative Limitations of an Old Doctrine Herrick K. Lidstone Follow this and additional works at: http://scholarship.law.cornell.edu/clr Part of the Law Commons Recommended Citation Herrick K. Lidstone, Liberal Construction of Tax Treaties An Analysis of Congressional and Administrative Limitations of an Old Doctrine , 47 Cornell L. Rev. 529 (1962) Available at: http://scholarship.law.cornell.edu/clr/vol47/iss4/2 This Article is brought to you for free and open access by the Journals at Scholarship@Cornell Law: A Digital Repository. It has been accepted for inclusion in Cornell Law Review by an authorized administrator of Scholarship@Cornell Law: A Digital Repository. For more information, please contact [email protected]. LIBERAL CONSTRUCTION OF TAX TREATIES-AN ANALYSIS OF CONGRESSIONAL AND ADMINI- STRATIVE LIMITATIONS OF AN OLD DOCTRINE Herrick K. Lidstonet Automatic data processing, identification numbers for taxpayers, with- holding of income tax from dividends and interest, and tax subsidies for investments in new equipment, revolutionary as they are in United States tax philosophy,' could normally have been expected to obscure the bitter infighting over those portions of H.R. 10650, the Revenue Bill of 1962, which prescribe new rules for taxation of foreign income.2 However, two years of publicizing the flow of gold toward Europe have so dramatized the possibilities for income tax avoidance (and even evasion) in foreign operations and through foreign bank accounts and tax havens that envious taxpayers can almost sympathize with Ingemar 'Johansson's failure to convince the district court that he was the fighting chattel of a Swiss corporation.3 From 1954 to 1961 the political battle was for freedom from income tax on foreign earnings.
    [Show full text]
  • Will Tax Hikes Kill the Bull Market? Trending Conversations
    Will Tax Hikes Kill the Bull Market? Trending Conversations Brian Levitt Global Market Strategist, North America Not a Deposit Not FDIC Insured Not Guaranteed by the Bank May Lose Value Not Insured by any Federal Government Agency Sources: Federal Reserve Bank ofSt.Louis, 12/31/20. federal budget deficit. deficit. budget federal The upshot is a substantialof the widening US a result of the weakness in economy activity. government hasbeen collecting less revenue as spending.the At sametime, the federal currently seeking an additional $1.9 trillion in is administration Biden The economy. the support to in spending trillion $3 over committed has already economy, the many of segments on impact devastating its and outbreak coronavirus federalThe US government,its in responsethe to Spending is Outpacing Revenue by a Wide Margin a Wide Spending by is Outpacing Revenue The Problem The FederalTax Receipts Spending and Percent of US Gross Domestic Product 30% 20% 35% 25% 10% 15% 1962 Federal Government Outlays (% of GDP) of Government (% Outlays Federal 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 Federal Government Receipts (% of GDP) of (% Receipts Government Federal 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Spending Revenue 2016 2018 2 2020 The Response The Biden Administration is Proposing Tax Increases The Biden administration is proposing tax Past Tax Rates and Current Proposals increases designed to generate revenue and to reduce the income gap between the nation’s 60% higher and lower earners. Among
    [Show full text]
  • The Revenue Act of 1943: a Quick View of Its Income and Excess Profits Tax Provisions of General Interest to Corporations Ralph R
    University of Minnesota Law School Scholarship Repository Minnesota Law Review 1944 The Revenue Act of 1943: A Quick View of Its Income and Excess Profits Tax Provisions of General Interest to Corporations Ralph R. Neuhoff Follow this and additional works at: https://scholarship.law.umn.edu/mlr Part of the Law Commons Recommended Citation Neuhoff, Ralph R., "The Revenue Act of 1943: A Quick View of Its Income and Excess Profits aT x Provisions of General Interest to Corporations" (1944). Minnesota Law Review. 2134. https://scholarship.law.umn.edu/mlr/2134 This Article is brought to you for free and open access by the University of Minnesota Law School. It has been accepted for inclusion in Minnesota Law Review collection by an authorized administrator of the Scholarship Repository. For more information, please contact [email protected]. MINNESOTA LAW REVIEW Journal of the State Bar Assoczation, VOLUME 28 APRIL, 1944 No. 5 THE REVENUE ACT OF 1943 A QUICK VIEW OF ITS INCOME AND EXCESS PROFITS TAX PROVISIONS OF GENERAL INTEREST TO CORPORATIONS By RALPH R. NEUHOFF * The Revenue Act 1943,' is, in many parts, not informative. This is due to several reasons. It is not a comI~lete taxing statute in itself, but rather a series of amendments to the Internal Rev- enue Code and other acts of Congress, which require reference to the context to be understood. Moreover it suffers from the handi- caps of all of our current revenue legislation in that the para- mount need is to be definite. If in being definite the statute is so replete with cross references to other parts of the Code, which are made only by section numbers, as to be incomprehensible, that is too bad but still true.
    [Show full text]
  • Coe Family Papers, 1836-1943
    The University of Maine DigitalCommons@UMaine Finding Aids Special Collections 2015 Coe Family Papers, 1836-1943 Special Collections, Raymond H. Fogler Library, University of Maine Follow this and additional works at: https://digitalcommons.library.umaine.edu/findingaids Part of the History Commons Recommended Citation Special Collections, Raymond H. Fogler Library, University of Maine, "Coe Family Papers, 1836-1943" (2015). Finding Aids. Number 173. https://digitalcommons.library.umaine.edu/findingaids/173 This Finding Aid is brought to you for free and open access by the Special Collections at DigitalCommons@UMaine. It has been accepted for inclusion in Finding Aids by an authorized administrator of DigitalCommons@UMaine. For more information, please contact Special Collections, Fogler Library, 207-581-1686 or [email protected]. Coe Family Papers This finding aid was produced using ArchivesSpace on February 29, 2020. Finding aid written in English. Describing Archives: A Content Standard Raymond H. Fogler Library Special Collections 5729 Raymond H. Fogler Library University of Maine Orono, ME 04469-5729 URL: http://www.library.umaine.edu/speccoll Coe Family Papers Table of Contents Summary Information .................................................................................................................................... 3 Biographical Note .......................................................................................................................................... 3 Scope and Contents .......................................................................................................................................
    [Show full text]
  • History of the Combat Zone Tax Exclusion
    Chapter 7 History of the Combat Zone Tax Exclusion BRANDON R. GOULD STANLEY A. HOROWITZ Executive Summary Exclusion of military pay from federal income taxes has been a longstanding element of U.S. policy on war finance, combat compensation, and revenue collection in combat zones. The Combat Zone Tax Exclusion (CZTE) was originally established to alleviate the burden of war finance from those who fought in the nation’s conflicts. During World War (WW)II, combat tax benefits were separated from war finance policy and became a permanent component of combat compensation. Over time, administrative policies and changes to the tax code have eroded the tax exclusion’s traditional purpose, while generating an unintended distribution of benefits. At present, the CZTE neither serves its original purpose nor its later historical role of selectively rewarding those who face a high level of combat risk. The CZTE was originally created to exempt servicemembers from income tax increases required to finance WWI and WWII. The first income tax exclusion, established in the Revenue Act of 1918, fully offset across-the-board cuts in the personal income tax deduction with a $3,500 tax exclusion for active military personnel. The policy was reprised in the Revenue Act of 1942 through a $250 ($300 for married members) exemption that precisely offset a contemporaneous cut in the personal deduction. Unlike its WWI predecessor, the 1942 exclusion was not available to commissioned officers. Legislative history indicates that the Congress’s purpose for both exclusions was clear: those who fought the nation’s wars should not bear the “double burden” of financing the conflict.
    [Show full text]
  • 1933 *I959 from the New Deal to the Cold War
    1933 *I959 From the New Deal to the Cold War I’he New Deal brought major changes to the Committee on Ways and Means. Legislative tarif€ rate-making was rep1 ments negotiated by the executive branch Agreements Act of 1934. The rity Act of 1935, creating the programs and greatly expanding government assistance to the needy. The income tax was extended through New Deal and World War I1 revenue legislation, becoming, along with Social Security, of life for most American citizens. For most tive coalition of Republicans and Southern committee, often frustrating the revenue Presidents Roosevelt and Truman. Even during the Republican admin- istration of Eisenhower, Cold War defense spending, the need to bal- mce the budget, and fears of inflation prevented any maj revenue reduction. “Our taxes must follow the he New Deal marked the beginning of the modern federal gov- intricacies of business and Ternment, and it refocused attention upon the Presidency due to not attempt to bend Franklin D. Roosevelt’s charisma and energy. The executive branch increased in size and complexity as the President centralized decision- business to the pattern of making. For example, the Bureau of the Budget was placed more simplicity we should all firmly under presidential control by its transfer from the Treasury De- like to see in laxation. ’’ partment to the Executive Offce of the President. The entire federal (Robert L. Doughton, bureaucracy expanded as Roosevelt’s Democratic administrations cre- 1940) ated program after program in an attempt to stimulate the economy. New agencies were created whose initials, such as the WPA, NRA, and CCC, were likened to alphabet soup, and the number of civilian gov- ernment employees in the capital doubled between 1929 and 1940.
    [Show full text]
  • 1 United States District Court for the Southern District of New York State of New York, State of Connecticut, State of Maryla
    Case 1:18-cv-06427 Document 1 Filed 07/17/18 Page 1 of 52 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK STATE OF NEW YORK, STATE OF CONNECTICUT, Civil Action No. 18-cv-6427 STATE OF MARYLAND, and STATE OF NEW JERSEY, COMPLAINT FOR DECLARATORY Plaintiffs, AND INJUNCTIVE RELIEF v. JURY REQUESTED STEVEN T. MNUCHIN, in his official capacity as Secretary of the United States Department of Treasury; the UNITED STATES DEPARTMENT OF TREASURY; DAVID J. KAUTTER, in his official capacity as Acting Commissioner of the United States Internal Revenue Service; the UNITED STATES INTERNAL REVENUE SERVICE; and the UNITED STATES OF AMERICA, Defendants. INTRODUCTION 1. The States of New York, Connecticut, Maryland, and New Jersey (the “Plaintiff States”) bring this action seeking declaratory and injunctive relief to invalidate the new $10,000 cap on the federal tax deduction for state and local taxes (“SALT”). Congress has included a deduction for all or a significant portion of state and local taxes in every tax statute since the enactment of the first federal income tax in 1861. The new cap effectively eviscerates the SALT deduction, overturning more than 150 years of precedent by drastically curtailing the deduction’s 1 Case 1:18-cv-06427 Document 1 Filed 07/17/18 Page 2 of 52 scope. As the drafters of the Sixteenth Amendment1 and every subsequent Congress have understood, the SALT deduction is essential to prevent the federal tax power from interfering with the States’ sovereign authority to make their own choices about whether and how much to invest in their own residents, businesses, infrastructure, and more—authority that is guaranteed by the Tenth Amendment and foundational principles of federalism.
    [Show full text]
  • Historical Development and Present Law of the Federal Tax Exemption for Charities and Other Tax-Exempt Organizations
    HISTORICAL DEVELOPMENT AND PRESENT LAW OF THE FEDERAL TAX EXEMPTION FOR CHARITIES AND OTHER TAX-EXEMPT ORGANIZATIONS Scheduled for a Public Hearing Before the HOUSE COMMITTEE ON WAYS AND MEANS on April 20, 2005 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION April 19, 2005 JCX-29-05 CONTENTS Page INTRODUCTION .......................................................................................................................... 1 EXECUTIVE SUMMARY ............................................................................................................ 2 I. OVERVIEW OF ORGANIZATIONS EXEMPT FROM FEDERAL INCOME TAX ... 18 A. Size and Growth of the Exempt and Charitable Sector ............................................ 18 B. Reasons for Tax Exemption...................................................................................... 27 C. Common Tax Law Features of Exempt Organizations............................................. 37 II. HISTORY AND EVOLUTION OF THE EXEMPT STATUS OF SECTION 501(C)(3) ORGANIZATIONS......................................................................................... 45 A. In General.................................................................................................................. 45 B. Summary of Threshold Requirements of Charitable Status ..................................... 48 C. Exempt Purposes of Section 501(c)(3) Organizations.............................................. 61 D. Public Charity or Private Foundation ......................................................................
    [Show full text]
  • Senator Grassley's Review of Six Tax-Exempt Ministries Charlene
    GRASSLEY 1 Congressional Oversight of the Nonprofit Sector: Senator Grassley’s Review of Six Tax-Exempt Ministries Charlene D. Orchard University of Utah * Draft Date: March 22, 2013. Abstract In a 2011 press release, Senator Charles Grassley stated, “The tax-exempt sector is so big that from time to time, certain practices draw public concern. My goal is to help improve accountability and good governance so tax-exempt groups maintain public confidence in their operations.” Since his election to the Senate in 1980, the Iowa Republican has developed a reputation for being a “good government guy,” and one instance of his work in this area was a multi-year review of six tax-exempt ministries. This paper discusses challenges faced in providing oversight of the nonprofit sector generally and of churches in particular. The case of Grassley’s investigation of tax-exempt ministries reveals the promise but mostly the perils of such a crusade, especially if reelection is a goal. Key Words: nonprofit organizations, nonprofit sector, governance, accountability, the electoral connection GRASSLEY 2 Congressional Oversight of the Nonprofit Sector: Senator Grassley’s Review of Six Tax-Exempt Ministries Private jets, $350,000 Bentleys, multiple vacation homes, Rolls Royces, cosmetic surgeries, a $23,000 marble top for a commode, $20 million headquarters, and multi-million dollar mansions for CEOs. These are not characteristics one would expect of tax-exempt, nonprofit organizations and certainly not of religious institutions. Yet reports of lavish lifestyles among leaders of some churches have come into Senator Charles Grassley’s office over the years. As a leading member and former chair of the Senate Finance Committee, Grassley investigated nonprofits such as the Nature Conservancy, the United Way, and the Red Cross, and has been the go-to member of congress for all things nonprofit and tax-exempt.
    [Show full text]