EO Tax Journal

It’s a shame so much bad blood has developed over the running of the Hershey School. Clearly an independent investigation is needed, and it does not appear it can or will happen in Pennsylvania. Alumni of the School would like the IRS to get involved. I doubt if the EO function of the IRS is up to such a daunting task plus a Democratic Administration investigating what seems to involve mostly Republicans in Pennsylvania may lead to a counter-investigation by the House Ways and Means Committee. Now that Senator Grassley has handed off, at least for the time being, his investigation of media-based ministries, I think he would be the ideal person to look into and report on the situation at the Hershey School. His Republican credentials should shield him from charges of partisan bias, and his reputation for being a man of integrity should shield him from charges of a cover-up if he ends up siding with the current trustees of the school.

For earlier reporting, see Email Updates 2010-147, -149, -156, and -157. Continue…

On Friday, the Evangelical Council for Financial Accountability (ECFA) held a briefing on Senator Grassley’s Staff Report and its implications featuring Dan Busby, ECFA President, and Michael Batts, Chair of ECFA’s Commission on Accountability and Policy for Religious Organizations. For information on the Staff Report, see Email Update 2011-4. For information on ECFA and its Commission, see the ECFA website (www.ecfa.org).

The purpose of the briefing was to address issues contained in the Grassley Staff Report that will be considered by the Commission. Each issue was introduced by Busby for comment by Batts. Continue…

1 – Follow-up to Yesterday’s Email

2 – Georgetown Law School’s Annual EO Program

3 – Interview with Dean Zerbe Continue…

A little bit of this and that today.

1 – Move to K Street (Literally)

3 – IRS Releases Fourth EO Revenue Procedure Update and Adds a Fifth One to the Annual Updates Continue…

In regard to Monday’s email update, Theresa Pattara, in her personal capacity, has this to say:

“Paul, I write with the usual disclaimer that I make when I speak publicly, i.e., I am not speaking, or in this case, writing, on behalf of Senator Grassley or his office. But I couldn’t help but write since I got a chuckle out of reading your post on Monday — it made me think of Goldilocks and The Three Bears. I’d put you in the ‘porridge is too cold’ category because you don’t think the Senator went far enough. Of course there are plenty who think the ‘porridge is too hot’ because the Senator shouldn’t be considering these issues at all. It’s the same criticism he received in 2004 when the staff proposals regarding general charity reform were issued and then again when the hospital proposals were issued.

“Many thought that the 2005 report issued by the Panel on the Nonprofit Sector, convened to respond to the 2004 staff proposals, wouldn’t result in anything. Yet, many of the ideas addressed in it — and some that weren’t in the Panel’s report — were included one year later in the Pension Protection Act of 2006. This despite the fact that many thought the provisions, particularly those regarding supporting organizations and donor advised funds, would be removed in conference.

“With respect to hospitals, Senator Grassley had a longer timeframe. He wrote to ten hospital systems in 2005, issued the staff summary of those responses and held a hearing in 2006, issued staff proposals and sponsored a roundtable in 2007, and then negotiated common sense reforms into the 2009 Senate version of the health care bill. Many thought the hospital provisions would similarly be on the chopping block since he ultimately wound up not supporting the larger package.  Yet, the provisions stayed in because both the Catholic Health Association (CHA) and Congress agreed they were common sense reforms. And, unlike other provisions of the healthcare bill, they will not be subject to repeal. Continue…