Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
New Legislation Protects Large Gift Donations To Nonprofits
Author: Scarinci Hollenbeck, LLC
Date: May 26, 2015
Key Contacts
Back
The House of Representatives recently took action to protect individuals who make large gift donations
By approving legislation that would ensure these donations do not incur the gift tax, H.R. 1104, the Fair Treatment for All Donations Act, now affects gifts made out to 501(c)4, 501(c)5 and 501(c)6 non-profit organizations.
The New Legislation
Rep. Peter Roskam, R-Ill., chairman of the Ways and Means Oversight Subcommittee, introduced the legislation earlier this year. In a statement, Roskam emphasized that the IRS has never levied gift taxes on donations made to nonprofits. However, the agency sent letters to donors in 2011, inquiring about these donations, according to Bloomberg News.
Currently, any gifts worth more than $14,000 are subject to taxation, so by codifying IRS policy, lawmakers can proactively insulate specific groups that take part in elections and do not reveal the identity of their donors, the media outlet reported.
Benefits of the New Legislation
Roskam touted the benefits of his legislation, emphasizing the need to provide fair treatment for all Americans who make donations to tax-exempt organizations.
“Although the IRS claims it is no longer seeking to curb giving to social welfare organizations, we need assurances that this practice will never happen in the future,” he said. “The Fair Treatment for All Donations Act, which will codify the longstanding practice of exempting these contributions from the gift tax, marks an important step in shielding Americans from further burdensome taxes and intrusive scrutiny by the IRS.”
While this bill obtained approval in the House, lawmakers introduced a similar version in the Senate, according to Bloomberg News. At the same time, the IRS is in the process of developing rules that would affect exactly what nonprofits can do without endangering their tax exemptions or ability to protect the identity of donors.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.