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Tax alert for non profits


#1

The following article was in the Professional Jeweler Magazine
website. I think that it may affect more nonprofit organizations.

Susan Sarantos
AuAg@efortress.com

JA asks industry for help Jewelers of America is asking its
members to write or call their Congressional
representatives concerning a proposed tax increase for
associations that would force JA to cut its operating
budget by 43%.

A proposal in the Clinton Fiscal Year 2000 budget, if
accepted, would severely increase taxes on not-for-profit
organizations such as JA. The proposal would amend the
Unrelated Business Income Tax associations currently pay to
include a 40% tax on annual investment income over
$10,000. Currently, not-for-profit organizations are exempt
from taxes on investment earnings.

If the measure is enacted, JA estimates it will need to
cut its budget from approximately $4.7 million (in 1998) to
$2.7 million. The association says its influential industry
efforts, including certification programs, funding to
affiliates and consumer public relations, would be scaled
back.

JA advises the best time to contact representatives is
during their current recess, which lasts until the week of
Feb. 22. By law, Congress must enact a budget resolution by
April 15. Contact the U.S. House of Representatives and
U.S. Senate, Washington, D.C. 20515; or find their e-mail
addresses at thomas.loc.gov.

  • Peggy Jo Donahue