BANKING: The House Ways and Means Committee hears testimony Thursday on the tax-exempt status of credit unions, part of an examination of the tax-exempt sector Ways and Means Chairman Thomas launched last year. The credit union tax exemption has been in place for nearly 70 years. The industry argues it should remain tax-exempt because credit unions, which have 87 million members nationwide, are not-for-profit cooperatives generally run by volunteers, and they return their earnings to their members.

Banking industry groups are pushing for changes to the tax status of some large credit unions that offer a widening array of "bank-like" services, such as commercial loans.

Thomas has raised questions about whether tax exemptions are warranted for organizations that provide goods and services similar to those of taxpaying companies. Bush administration officials and many congressional leaders from both parties have voiced strong support for the credit-union tax exemption.

Posted by Jennifer Lowe, 10:30:00 AM



New Report on Public Perception of Charities
From the Chronicle of Philanthropy: Charity leaders are out of touch with the typical American donor's perception of the nonprofit world, according to a new report.

Nonprofit officials overestimate donors' interest in public-policy debates -- such as the extent to which government ought to regulate charities - and underestimate donors' distaste for fund-raising techniques they associate with big business, such as telemarketing, the report says.

The report, released today by Public Agenda, a research organization in New York, is based on six focus-group discussions conducted with men and women who were considered "civically engaged" - that is, they had voted in the last election; were a member of a civic group; had given at least $300 to charities, and volunteered at least once in the past year.

For the report: www.publicagenda.org

Posted by Jennifer Lowe, 09:14:52 AM

Tuesday, October 11, 2005