Oregon Law Review : Vol. 86 No. 3, p. 865-894 : Redefining What It Means to Be Charitable: Raising the Bar with a Public Benefit Requirement
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Date
2007
Authors
Keb, Tiffany
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon School of Law
Abstract
This Comment seeks to explain how a public benefit
requirement will improve the charitable sector in America. Part
I explains what it means to be “charitable” in American tax law,
and provides a general idea of what an organization must do to
be exempt from federal taxes under the Internal Revenue Code
(“I.R.C.”) § 501(c)(3). Part II describes the substantial benefits
of being classified as a § 501(c)(3) organization. Additionally,
possible rationales for preferential treatment of charitable
organizations in the tax code are explored. Part III illustrates
the need to reform current charity law, and explores what that
restructuring might look like by examining reform occurring at
the state level. It also examines charity reform recently passed
in England and Wales in the Charities Act, which potentially
offers a creative solution to reforming the American charitable
sector. Part IV explores some of the concerns of government
officials at the federal level regarding the charitable sector by summarizing a recent hearing before the House Committee on
Ways and Means. Finally, Part V argues for the adoption of a
public benefit requirement similar to the one in the Charities
Act. Essentially, a public benefit requirement has already been
adopted in several states, at least regarding the regulation of
nonprofit hospitals. The success of these states in formulating
public benefit requirements is evidence that doing the same at
the federal level will not be unduly burdensome.
Description
30 p.
Keywords
Income tax deductions for charitable contributions, Charity laws and legislation
Citation
86 Or. L. Rev. 865 (2007)