In writing about the recent IRS controversy, columnist Gil Smart opines “Agency only did half the job.”
“So why bother applying for 501(c)(4) status in the first place? After all, donations to a 501(c)(4) aren’t tax-deductible. Ah, but they can engage in lobbying, and don’t have to disclose donors.
“So if you want to give money and attempt to influence the political process but don’t want anyone to trace it back to you, donating to a 501(c)(4) is convenient and quiet.”
WATCHDOG:
So far, so good. Smart properly explains that 501(c)(4) status does not allow donations to be tax exempt, only the donors to remain anonymous.
He would have done well to have explained that 501(c)(3) (as opposed to (4), does provide tax deductions for donations and exempts earnings from taxation.
Because he failed to do this, the rest of the article is somewhat muddled.
Smart makes a quantum leap with:
“Now, with the heat on, the IRS may back off entirely; instead of going after faux ‘charitable’ groups whatever their political stripe, the agency is unlikely to investigate anyone.”
They may back off examining applications for 501(c)(4)s, but that doesn’t mean they would treat the 501(c)(3)s any differently than before. The IRS’s main job is to collect tax money; not to enforce election laws.
Smart discusses how The City of Pittsburgh has challenged the University of Pittsburgh Medical Center for not meeting the definition under state law of a “public charity.” NewsLanc has raised the same issue concerning Lancaster General Health 501(c)(3) tax exemption status because of LGH’s large investments in for-profit medical practices.
Similarly, the Pittsburgh challenge is likely of a 501(c)(3), tax deductible status.
Do you really expect Smart or anyone at LNP to challenge one of Lancaster County’s “Sacred Cows”?
That would be almost at blasphemous as reporting the truth about the Marriott/Convention Center finances. While it would be interesting reading, important information for decision makers,and would certainly be ‘local, local, local”; it will NEVER HAPPEN.
LNP looks out for its’ own selfish interests, and the selfish interest of the “power elite”, rather than subscribe to true journalism ethics.