Parade of Legislation, 2000-2002

Nonprofit organizations have been inundated, in recent years, with federal tax legislation that is directly or indirectly having an impact on their operations. Here is a summary of that legislation enacted during the period 2000-2002.

Political organizations disclosure legislation (2000) [Public Law 106-230]:

  • To be exempt, political organizations must give notice to the IRS of their existence (IRC § 527(i))

  • Reporting requirements imposed (IRC § 527(j))

  • Document disclosure requirements adopted (IRC § 6104(a)(3))

  • This legislation is summarized in the September 2000 issue of The Nonprofit Counsel


Economic Growth and Tax Relief Reconciliation Act of 2001 [Public Law 107-16]:

  • Tax cuts totaling $1.35 trillion over the next 10 years

  • Repeal of the itemized deductions and personal exemption phase-outs, with repeal phased in over 2006-2009 (IRC §§ 68, 151(d)(3)(A))

  • Phase-out of estate tax and generation-skipping transfer taxes until their repeal in 2010, with a lowering of gift taxes and increase in unified credit in interim; gift tax remains in effect (IRC §§ 2601, 2055, 2522)

  • Exclusion for employer-provided education assistance made permanent (IRC § 127)

  • Expansion of qualified tuition program to include certain prepaid tuition programs established and maintained by one or more eligible educational institutions (including private institutions) (IRC § 529)

  • This legislation is summarized in the July 2001 issue of The Nonprofit Counsel


Victims of Terrorism Tax Relief Act of 2001 [Public Law 107-134]:

  • Revision of rules concerning the provision of assistance (grants and loans), by charitable organizations, to individuals who are victims of terrorism (IRC § 501(c)(3))

  • Revision of rules concerning the provision of disaster relief assistance by a private foundation controlled by an employer in which those who are assisted are employees of that employer (IRC § 4941)

  • This legislation is summarized in the February 2002 issue of The Nonprofit Counsel


Clergy Housing Allowance Clarification Act of 2002 [Public Law 107-181]:

  • Legislation mooted constitutional law challenge to parsonage allowance exclusion (IRC § 107)

  • This legislation is summarized in the June 2002 Nonprofit Counsel


Political organizations disclosure legislation (2002) [Public Law 107-276]:

  • Notice and reporting requirements for state and local party organizations eliminated

  • This legislation is summarized in the January 2003 Nonprofit Counsel


Bipartisan Campaign Reform Act of 2002 [Public Law 107-144]

  • Legislation significantly amended Federal Election Campaign Act

  • Restrictions on soft-money expenditures affecting tax-exempt organizations

  • This legislation, and a court opinion and proposed rules relating to it, are summarized in the May 2002 issue of The Nonprofit Counsel, and in the February, April, and May issues of Bruce R. Hopkins’ Nonprofit Counsel.


Sarbanes-Oxley Act of 2002 [Public Law 107-204]:

  • Corporate responsibility and accounting reform legislation

  • This law will be having an impact on the governance of nonprofit organizations

  • This legislation is summarized in the October 2002 Nonprofit Counsel
     

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