Friday, July 8, 2011
No Gift Tax Liability for Contributions to 501(c)(4)s
Posted by Armanino Nonprofit Team
The IRS recently stated that it “will not use resources to pursue examination” on gift tax on contributions to 501(c)(4)s – social welfare organizations. The IRS previously threatened to apply a gift tax for contributions to these organizations. With election year quickly approaching and lots of media attention, there was concern that individuals might be subject to gift tax that gave large sums to these organization. The IRS indicated that they are looking to Congress to provide additional guidance or legislation. In the meantime, individuals can contribute to 501(c)(4) organizations without fear of gift tax liability.
Nonprofit organizations have specialized audit, tax and operational needs that require specialized service. Armanino has been committed to the nonprofit sector since 1953, and we now work with more than 500 nonprofit clients. This hands-on experience gives our staff of CPAs and former CFOs a deeper understanding of the issues nonprofits face, so we’re able to meet their needs and help them fulfill their missions in the most efficient, cost-effective way possible.