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NOTE: The following article was originally published by Business Wire in their April 5, 2005 issue and is reprinted here with permission.
Business Wire April 5, 2005 WASHINGTON (BUSINESS WIRE)—At the Senate Finance Committee's hearing on "Charities and Charitable Giving: Proposals for Reform" on Tuesday April 5, the Alliance for Charitable Reform (ACR) called for increased penalties for those who break the law and for better enforcement of existing laws. ACR urged Congress to proceed with caution and to be mindful of the important work done by America's charitable foundations in communities across the country. The Alliance for Charitable Reform, founded under the auspices of The Philanthropy Roundtable, is dedicated to the preservation and expansion of philanthropy through charitable organizations. "We recognize the seriousness of Congress' intent to put a stop to the abuses and we applaud their resolve. Our members want better enforcement of the current laws and we want increased penalties on those who violate the public trust and break the law. We are equally committed to empowering the charitable community to continue the good work it does all across this country. But for the efforts of America's private foundations and charities, many of our most vulnerable citizens would suffer greatly. The charitable community puts at-risk kids through college, provides needed medical supplies and equipment to underserved populations and brings hope to those who have fallen through America's safety net," said ACR Co-Founder Dan Peters, President of the Ruth & Lovett Peters Foundation. The Alliance for Charitable Reform aims to minimize the financial impact, the administrative impact and the service delivery impact that any legislative actions may have. Protecting the important work of charitable organizations needs to be a major concern of the 109th Congress. "We're most concerned with proposals affecting nonprofit organizations and private foundations, specifically, that would interfere with their decision-making freedom and impose new, burdensome regulatory requirements." Peters continued, "An urgent priority for the Alliance is to respond appropriately to these proposals (from the Senate Finance Committee and the Joint Committee on Taxation), which we think could threaten the essential functions served by charities and foundations." Reviewing the IRS-required Form 990 of many non-profits has led to the discovery of many of the most egregious abuses that have been publicly reported. If the IRS had the necessary resources to enforce current law, we wouldn't need additional regulation or Congressional intervention. "In fact," said Peters, "there are many public websites that publish the Form 990s of charitable groups. This information is available to anyone who has the time to look for it," he said. "We encourage Congress to enforce the existing laws and to increase penalties for those in our sector who break the law. We want to work with Members to ensure that our good work can continue to benefit those in need. Let's keep America's charitable foundations strong", he concluded. The Alliance of Charitable Reform is a project of The Philanthropy Roundtable, a 501(C)(3) tax-exempt organization. The Alliance represents charitable organizations, including private foundation, family foundations, and public charities. |
