The Colorado Springs Gazette final

Abuse of tax exempt status of nonprofits needs to be thoroughly reviewed by Congress

Not-for-profit organizations contribute very little financially to the Teller County revenue stream, yet these NPOs receive emergency medical services, fire department services, street, sewer and water services, and police and sheriff services that we the real tax payers pay for.

In view of the recent political activities of these NPOs, I think their tax exempt status needs a thorough fiscal review.

The tax exempt status of NPOs is not protected by the constitution. It comes from legislation passed in the congress. Thus, it can be amended and corrected by Congress.

For example, in 1969 the Tax Reform Act created Section 501©(3) in the Internal Revenue Service Code. This Section has become a synonym for NPOs in today’s parlance. In 1976, Congress passed a bill that allowed 501©(3)’s to legally spend up to $1 million per year on lobbying. Thus, NPOs became politicized.

Today, the original intent of incentivizing monetary support for organizations like the Red Cross and the United Way has been besmirched. And in many instances, many of these nonprofits have become little more than a laundry for washing money given to politicians and political issue organizations. The original good intentions of the NPOs have been evermore abandoned.

Enormous sums of money are now raised by computer and the donors have little knowledge of how their donations are being spent.

To measure the financial worth of these NPOs check their Form 990’s at irs.gov. Also, check their Federal Election Commission Reports at fec. gov to determine what the foundations are donating to politicians and political issue organizations.

A thorough review of these nefarious activities is warranted right now and corrective action should be taken by the Congress to reestablish the original intent of tax exemption for charitable giving.

Ed Biersmith, Divide

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2021-09-15T07:00:00.0000000Z

2021-09-15T07:00:00.0000000Z

https://daily.gazette.com/article/281689732941477

The Gazette, Colorado Springs