>From today's Washington Post..... By Albert B. Crenshaw

"In the wake of a long-running series of scandals and controversies
involving charities and nonprofits, Congress's tax-writing committees are
launching an effort this week to crack down on fraudulent activities and
tighten laws governing tax exemptions for those groups.

Congress has reacted angrily to revelations of abuses by a wide variety of
charities, including scandals at well-established organizations such as
United Way and the Nature Conservancy, and the disclosure that some
tax-exempt groups have been acting as "accommodation parties" in abusive tax
shelters.

"It's obvious from the abuses we see that there's been no check on
charities. Big money, tax free, and no oversight have created a cesspool in
too many cases," Senate Finance Committee Chairman Charles E. Grassley
(R-Iowa) said late last week. "It's time for Congress to send a message."
Added Sen. Max Baucus (Mont.), the ranking Democrat on the panel: "The
examples of abuse surrounding charitable organizations are growing at an
alarming rate. . . . These actions are immoral and inexcusable -- and
threaten to taint the reputation of all charitable organizations."

Other proposals under consideration include:  . Revoking the tax-exempt
status of nonprofits involved in tax shelters."

Vicky here:

In Minneapolis, a "non-profit" is added to almost every real estate
development - to get more public money and to avoid paying taxes.  This
could become very interesting: When the IRS starts auditing, I hope The West
Bank Community Development Corporation and Seven Corners Apartments are at
the top of its list.

Vicky Heller
North Oaks and Cedar-Riverside

Link to entire article:  
http://www.washingtonpost.com/wp-dyn/articles/A56406-2004Jun20.html



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