
New Developments on Nonprofit Issues
by Kay Guinane, 11/16/2003
The Supreme Court won’t hear the case of a nonprofit shut down under the PATRIOT Act – the IRS ends its special process for reviewing revocation of tax exempt status – Parties settle lawsuit in Georgia over religious discrimination in hiring for state funded jobs – and a new website promotes electronic filing of IRS Form 990. More details below:
Supreme Court Won’t Hear Appeal of a Nonprofit Shut Down Under PATRIOT Act
On Nov. 10, the Supreme Court decided not to consider the case of Global Relief Foundation, which was shut down by the Treasury Department in Dec. 2001, because of alleged ties to terrorism. The 7th U.S. Circuit Court of Appeals rejected Global Relief’s claim that the asset seizure was unconstitutional. For background on the history of the case see the September issue of OMB Watch’s Executive Report.
IRS Ends Special Review Process
The Internal Revenue Service (IRS) has abolished a little known “special review” process that was used last year to reinstate the tax-exempt status of two groups tied to former Rep. Newt Gingrich. The Abraham Lincoln Opportunity Foundation and the Howard H. Callaway Foundation had lost their 501(c)(3) status because of partisan political activities.
The IRS said it used the process in “very, very few cases,” and that the Gingrich groups were not the only ones. However, confidentiality laws protect the identity of the other groups. The IRS said the special review process is being eliminated because it caused “undue and unanticipated confusion,” rather than increasing public confidence in IRS decisions. For more details on the ALOF and Callaway case see April article in the OMB Watcher.
Parties Settle Lawsuit on Religious Discrimination
The state of Georgia, the United Methodist Children’s Home and two of its employees have settled lawsuits stemming from religious discrimination in hiring and firing for publicly funded positions. On Nov. 5 Lambda Legal, which represented plaintiffs Aimee Bellmore, Alan Yorker and several state taxpayers, announced that the state and children’s home had agreed to new policies that forbid religious discrimination against current or prospective employees or program beneficiaries. The state of Georgia’s constitution prohibits any “direct or indirect” taxpayer support for religious congregations. Georgia Governor Sunny Perdue has called for an amendment to the state constitution that would relax this standard.
New Website Promotes Electronic Filing for IRS Form 990
The Electronic Data Initiative for Nonprofits (EDIN), a consortium of nonprofit groups working for improved accountability, launched a website on Oct. 31 that provides information about electronic filing of IRS Form 990, the annual information return for nonprofits. The IRS is scheduled to make electronic filing of 990 available next year. The site includes information about software and subscription to a free monthly newsletter.
