Nov 1, 2011 12:00 PM

Good Intentions Aren't Enough

By Laura H. Peebles, tax director in the Washington, D.C. office of Deloitte Tax LLP

The Internal Revenue Service and the courts have been very active this year in the charitable arena. There have been informal reports of increased audit activity by the IRS, and the public record shows a sample outcome of those audits. The authorities have denied tax benefits to donors who mostly had the best of intentions, but were missing some key component required for deductibility or tax-exempt status. In the interest of avoiding problems for you and your clients, here's a survey of some frequent problem areas.

If a charitable organization is to make payments to individuals in need, the individuals must constitute a charitable class, the benefits must be provided on a non-discriminatory basis and records must be retained to prove that those standards have been met. Fundraising for payment of medical expenses for individuals in need, while admirable, is a private purpose that will lead to revocation of the exemption.¹

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

Click here to download the 2011 Trust Glossary

50 Years Ago This Month

Click here to read the issue.

50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

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