Newsbits
BBB Wise Giving Alliance offers online system to evaluate standards
The BBB Wise Giving Alliance has introduced its Online Charity
Reporting and Evaluation System, which will permit the charity-monitoring
organization to automatically evaluate charity data and significantly increase
the number of reports issued.
The online system will also make it easier
for organizations to apply for the Alliance's new national charity seal
program, which evaluates charities based on 20 voluntary standards including
governance, effectiveness, finances and fund raising. According to the Alliance,
about two-thirds of those evaluated meet its standards.
You can get more
information about the online system at www.give.org. The site also provides
details on donor giving, the charity seal program and accountability standards,
as well as reports on more than 450 not-for-profits.
Employment in
charitable sector decreases
The labor market in the not-for-profit sector
has weakened significantly over the past year and a half, according to
Recent Trends in Nonprofit Employment and Earnings: 1990-2004 by OMB Watch,
a nonprofit research and advocacy organization.
Among the report's findings:
- Employment grew by just 0.5% from July 2003 to July
2004; weekly earnings fell by 5.2% over the same period.
- The average
workweek is now 29.8 hours, the lowest since the Bureau of
Labor Statistics began collecting this data in 1990.
- State-level data confirms
nationwide patterns. Overall, 17 of the 23 states which offer
detailed employment information had not-for-profit employment growth
below the 15-year national average.
You can get the full report at www.ombwatch.org.
IRS releases new publication on vehicle donations
As the IRS increases its scrutiny of car donation
programs, charities may want to review their practices to ensure
they're following proper procedures. IRS Publication 4302, A Charity's
Guide to Car Donations, explains the ins and outs of four types of
vehicle donation programs.
Your exempt status or the donor's ability
to deduct the gift shouldn't be affected if your organization's
program falls into one of these three categories:
1. Uses the donated
vehicles in its programs,
2. Sells the vehicles and uses the proceeds
to fund programs, and
3. Hires a for-profit agent to operate the
car donation program.
The fourth type of program - when the charity
authorizes a for-profit entity to use its name for the purpose
of soliciting car donations - can pose problems for both charities
and donors. Contributions are not deductible, even if the organization
uses the money it receives to fund activities.
The publication,
available at www.irs.gov, also addresses filing and reporting requirements.
Note that the 2004 American Jobs Creation
Act will limit the amount individuals can deduct for
vehicles donated to charities. The tax break will depend
on how organizations use the items and will apply to
vehicle donations made after Dec. 31, 2004.
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.
