Newsbits
Mississippi leads country in generosity
Mississippi,
the country's poorest state, is also the most generous - for the eighth
consecutive year - according to the Catalogue for Philanthropy's 2004
Generosity Index.
Following Mississippi are other Southern states:
Arkansas, Oklahoma, Louisiana and Alabama, in that order. At the bottom
of the giving list are Wisconsin, New Jersey, Rhode Island, Massa chutes
and New Hampshire, which ranked last. The survey results are based
on the difference between residents' average adjusted income and itemized
charitable donations as reported on 2002 federal tax returns.
The Catalogue
for Philanthropy, which publishes a directory of not-for-profit organizations,
created the index in 1997. To view the 2004 survey, visit the organization's
Web site at www.catalogueforphilanthropy.org.
Take precautions for
Check 21
You may need to adopt safeguards to protect your not-for-profit
against negative repercussions from the Check Clearing for the 21st
Century Act.The new federal law, known as Check 21, allows financial
institutions to exchange checks electronically, using high-quality
reproductions of original checks.
The new system is expected to reduce
the "float" - the one-to-five-day period when a check is written and
funds are withdrawn from the check writer's account. Many organizations
and consumers have become accustomed to relying on the float to stretch
their funds, often writing a check a few days before a deposit is scheduled
to be made to their accounts. And though checks will clear faster,
banks aren't required to reduce the "hold" time they place on deposits.
With the passage of Check 21 last October, the effects
of reduced float time have been gradual because many banks don't
have the technology to process electronic check images. Nonetheless,
the law is expected to cause more bounced checks.
In light of the
recent law, you may want to ensure your account has overdraft protection,
initiate or increase a credit line, and ask your bank what it will
return as evidence of cleared checks. And, of course, don't rely
on float time.
IRS revises application for 501(c)(3) exemption
The IRS has revised the application form for organizations
seeking tax-exempt status. The new Form 1023, Application for Recognition
of Exemption Under Section 501(c)(3) of the Internal Revenue Code,
streamlines the application process and minimizes contact with the
IRS. It also requires more upfront information, which the IRS says
will help it become aware of potential problems earlier in the application
process.
"We have identified the use and
abuse of charities as one of our four servicewide enforcement priorities," said
IRS Commissioner Mark W. Everson. "This new form will give us valuable
information about those who might abuse the tax-exempt system and erode
public confidence in charities. At the same time, this change will
help smooth the application process and minimize the burden on new
groups."
You can download revised Form 1023 on the IRS's Web site
at www.irs.gov or call (800) 829-3676 for printed copies of the form
and instructions.
These publications are distributed with the understanding
that the author, publisher and distributor are not rendering legal,
accounting or other professional advice or opinions on specific facts
or matters, and, accordingly, assume no liability whatsoever in connection
to its use.
