EO Tax Journal

1 – The EOTJ Mailbag

Milt Cerny (mcerny@mcguirewoods.com) had this to say about Wednesday’s reporting that the Council on Foundations-convened Treasury Guidelines Working Group had decided to end its dialogue with Treasury over the Anti-Terrorist Financing Guidelines for U.S.-based charities.

“Paul, I read with regret the headline that ‘Charities End Dialogue with Treasury over Guidelines that Stifle Effective Global Grantmaking.’ I have followed the efforts of U.S. charities as they provided relief efforts, assisted foreign educational and cultural programs throughout the world, and helped reconstruct democratic civil societies in countries that were subjugated to totalitarian rule. The U.S. was and is the model for philanthropic and voluntary efforts. The world is changing, and while there has been limited abuse of charities for political ends, it does not justify the burdensome and overbroad restrictions that have been placed on charitable international grantmaking through so-called Treasury voluntary guidelines without appropriate rule-making notice for public comment and government reflection. However, I think the charitable community must continue the dialogue with Treasury until reasonable rules can be put in place to protect vital national interests and promote international philanthropy to create a viable civil society.”

My take: The situation for Treasury is a tough one. If they back off their guidelines and a terrorist organization gets money from a charity, they will be harshly criticized. So if I’m Chip Poncy (is that his real name?), the answer is simple — I ignore the complaints of the charitable sector now rather than risk getting dumped on later. This may not be the right answer, but in a highly charged political environment, it may be the only logical response.

2 – Weekend Reading

Crossing the Border: A Comparative View of Philanthropy

What follows are the September 24 remarks of Philip T. Hackney, Senior Technical Reviewer, Exempt Organizations Branch 2, Office of Chief Counsel, IRS, Washington, DC, Robert B. Hayhoe, Miller Thomson, Toronto, ON, Susan Mott, Operational Policy & Appeals Liaison, Policy Planning & Legislation, Charities Directorate, Canada Revenue Agency, Ottawa, ON, and Mark B. Weinberg, Weinberg & Jacobs LLP, Rockville, MD, as delivered to members of the EO Committee of the ABA’s Tax Section. The moderators of the panel are M. Elena Hoffstein, Fasken Martineau LLP, Toronto, ON, and LaVerne Woods, Davis Wright Tremaine LLP, Seattle, WA. Continue…

1 – Working Group Rips Treasury for Unproductive Discussions and Chilling Vital Charitable Activity

2 – Yes, Virginia, There Is a Section 501(d) Continue…