In Bloomberg Businessweek, Jim Kuhnhenn has an article discussing an emerging problem in nonprofit tax law. Kuhnhenn reports that "donors to nonprofit groups that are spending millions on political ads this election have escaped public scrutiny because their donations don't have to be disclosed." However, there has been debate about whether these contributors to such politically active tax-exempt nonprofit organizations should have to pay the 35 percent gift tax on their donations. The law though is unclear. A contribution may not qualify as a gift if the donors "get a consideration" by the group in response to the money given.
Posted by Joshua Hock, Associate Editor, Wealth Strategies Journal
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