Download LSAT PrepTest 15 by LSAC PDF

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Example text

Therefore, in the face of seemingly inadequate disclosure of meaningful information to the public, excessive administrative and fundraising costs, and insufficient portions of the proceeds of charitable gifts passing for charitable purposes, government regulation of fundraising for charity is thriving. Some of the few states that currently lack a comprehensive charitable solicitation act are engaged in the process of trying to enact one. Many states with such a law are contemplating toughening it, either by amending the act or by increasing reporting and similar regulatory burdens.

Any one of the 15 fundraising methods can more easily be accomplished alone; to activate many methods simultaneously takes skill in managing the process of moving everyone forward together, in the same direction, toward the same objective, and at the same time. The desired net effect is to stimulate multiple forms of asking for multiple gift decisions from donors and prospects each year, while at the same time selectively soliciting larger gifts from a few who have demonstrated greater potential from previous gift performance.

In 1969, the Internal Revenue Code was sizably thickened by a battery of rules defining, regulating, and taxing private foundations, seeking to prevent selfdealing and large stockholdings and to increase grant-making and public involvement in the affairs of foundations. In 1974, Congress authorized the formation, within the IRS, of a formal administrative and regulatory structure, which has stepped up federal oversight and audit of the nation’s nonprofit, including charitable, organizations. In 1987, Congress enacted disclosure laws for noncharitable tax-exempt organizations engaged in fundraising; in 1989, the IRS launched a renewed effort to require disclosures in the course of fundraising for charitable organizations; in 1993, Congress enacted substantiation and disclosure laws applicable to tax-exempt charitable organizations engaged in fundraising; in 2004, Congress provided rules concerning the charitable deduction for contributions of vehicles and intellectual property, and increased reporting for noncash contributions; and, in 2006, Congress enacted new 47.

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