December 18, 2009, Newsletter Issue #156: Regulating Giving

Tip of the Week


Income tax charitable deductions for gifts and property you have contributed to your favorite causes are just one way the government encourages supporting those charities that impact our world. Whether you are making a gift of $500 or $50,000, you often are reminded that your gift is “tax deductible". When you take an income tax charitable deduction for supporting non-profit organizations, it is in fact the government’s way of encouraging giving. This also acknowledges the role charities play in dealing with poverty, the environment, cultural life and the arts, cancer and other life threatening illnesses.

You can learn a great deal about how the U.S. government influences charitable organization's ratings by understanding more about the tax deduction process.

The Internal Revenue Service provides a great deal of information on requirements for non-profit organizations; including how to establish a 501 (3) non-profit organization. Take a look at www.irs.gov to find links to non-profit information. National Association of Securities Dealers Regulators is a self-regulatory securities industry monitor and oversees the NASDAQ as well. Questions about securities gifts to charities or reviewing a charity's policies and procedures on gifts of stock, can be tapped into here. The NASD also has a cooperative program with government and industry organizations. Exploring www.nasd.com or www.nasdr.com will educate you in how to look at a charitable organization's ratings in relationship to their stewardship of securities gifts. Registered brokers/dealers, investment advisers are regulated by this Agency. The US securities and Exchange Commission (SEC) www.sec.gov helps administer federal securities laws, regulates firms engaged in the purchase or sale of securities, as well as people who provide investment advice. As you become a more seasoned and sophisticated giver, you will want to have the advantage that those inside the industry possess.

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