How many other rules regulating charities are there?
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Posted on 12/10/2006 3:21:50 AM PST by Kaslin
WASHINGTON — Congress passed legislation early Saturday to ensure the families of five firefighters killed in Southern California can get more than $1 million in donations despite an IRS snag.
The measure was passed by voice vote in the final hours of the GOP-controlled Congress and now goes to President Bush for his signature.
The legislation would allow the Central County United Way in Hemet to distribute money to the families of the U.S. Forest Service firefighters killed in an arson blaze in October — even though the organization was not supposed to raise it under Internal Revenue Service rules.
The rules prevent tax-exempt charitable organizations from raising money to benefit individuals, so the United Way risked losing its tax exempt status if it gave out the money.
The legislation applies only to money raised to help families of the firefighter victims of the Esperanza Fire. It was moved through the Senate by Democratic Sens. Dianne Feinstein and Barbara Boxer, and through the House by GOP Reps. Mary Bono, Ken Calvert and Jerry Lewis, who represent the area.
(Excerpt) Read more at foxnews.com ...
I wish we could just freeze their assets!
I don't think I understand this fully and I wish someone could explain it to me. Why and how did they ever raise this money in the first place if they knew they couldn't distribute it?
Hasn't this money been in the bank for a while earning interest for the United Way and does the UW get to keep that interest money?
It's like there is something very out of whack here and no one is digging into it because the money is for victims' families and no one wants to sound like they are trying to hurt those families by penalizing the United Way.
But, then again, I might just not fully understand this.
Carolyn
As long as the money finally ends up inthe right hands, That is the main point.
I don't understand it either, but they probably didn't know they could not contribute it. I wonder how many cases are there like this and this is the only one we heard about?
When they first asked for donations, they only expected maybe $10,000 or so. But then they got overwhelmed with so many donations they did not know how to legally handle it, so they went to the 'experts' United Way to help them deal with it.
They're called Bills of Attainder (laws passed specifically to benefit or harm a single individual). They're specifically prohibited by the Constitution. None of which ever stopped the Congress before. Why let the silly old Constitution get in the way of doing good, and feeling good about it (while snagging a few votes along the way)?
The United Way is such a scam, trying to profit from the publicity on this trajedy. Raising money for these 5 specific fire fighters.
What about all the other fire fighters in the country who die in the line of duty, out in bo dunk USA?
If it was a general fund for all, then it'd be legal. Now its just a scam and congress is trying to OK it.
the IRS would have had a much different view if it was IRS agents that had died and were waiting for help with money! http://sacredscoop.com
bkamrk
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Today, there is probably one less than tomorrow. And tomorrow, there will be one less than there is the day after tomorrow.
This kind of stuff only affects big business kind of "charities". That's why the United Way has to worry about it, and the local Jaycees or Eagles could raise a lot of money like this for a one-time deal and get the money to the right place without ever filing any paperwork. Technically, everybody should but only the bg guys have to worry about actually staying around long enough to get caught.
But once the charity gets big enough to have the look and feel of a government agency, the rules start to choke. That's why the United Way needed special dispensation.
On the other hand, if the UW, Jaycees, Eagles, churches... are allowed/encouraged to give directly to those in need, then the needy realize that the government and government programs aren't needed.
As good socialists, the politicians can't have that. The solution is simple--pass a law to make it illegal for the charities to give directly to families and individuals.
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