Difference between revisions of "US Nonprofit Sector, Tax Benefits, WANGO Survey"
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In the 19th Century, French visitor and scholar Alexis de Tocqueville found a distinctive feature of American life, different from Europe at that time: citizens coming together in associations to address needs that were not being met by government and business. Tocqueville noted associations to form schools, distribute books, create prisons, and build hospitals. And this was not a new development in American life, but dated back to the colonial period. Some of these civic initiatives, such as schools, were deemed so essential that they subsequently were taken up and expanded by government to provide even wider benefit to citizens. | In the 19th Century, French visitor and scholar Alexis de Tocqueville found a distinctive feature of American life, different from Europe at that time: citizens coming together in associations to address needs that were not being met by government and business. Tocqueville noted associations to form schools, distribute books, create prisons, and build hospitals. And this was not a new development in American life, but dated back to the colonial period. Some of these civic initiatives, such as schools, were deemed so essential that they subsequently were taken up and expanded by government to provide even wider benefit to citizens. | ||
| − | Non-governmental associations remain an enduring and integral condition of American life today. Currently, there are approximately 1.3 million known nonprofit charities, foundations and religious congregations in the United States. Many more associations have not been formally incorporated and recognized by the government. | + | Non-governmental associations remain an enduring and integral condition of American life today. Currently, there are approximately 1.3 million known nonprofit charities, foundations and religious congregations in the United States. Many more associations have not been formally incorporated and recognized by the government. <membersonly> |
===Tax benefits=== | ===Tax benefits=== | ||
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The U.S. government, in realizing the value of the nonprofit sector in American society, offers special tax incentives aimed at supporting charitable organizations. By providing the opportunity for nonprofits to be exempt from taxes, organizations have more funds available for their missions. And, by allowing individuals to deduct charitable contributions when calculating their individual income taxes, donations to nonprofit organizations are encouraged. | The U.S. government, in realizing the value of the nonprofit sector in American society, offers special tax incentives aimed at supporting charitable organizations. By providing the opportunity for nonprofits to be exempt from taxes, organizations have more funds available for their missions. And, by allowing individuals to deduct charitable contributions when calculating their individual income taxes, donations to nonprofit organizations are encouraged. | ||
| − | Nonprofit organizations apply for tax-exempt status under section 501(c)(3) of the U.S. Internal Revenue Code. (Religious congregations do not have to apply, but automatically receive 501(c)(3) tax-exempt status.) Tax-exempt organizations are recognized either as “public charities” (those that receive at least one-third of their annual income from the public) or “private foundations” (those that receive their primary financial support from an individual, a family, or a corporation). | + | Nonprofit organizations [[How to obtain tax-exempt status|apply for tax-exempt status]] under section 501(c)(3) of the U.S. Internal Revenue Code. (Religious congregations do not have to apply, but automatically receive 501(c)(3) tax-exempt status.) Tax-exempt organizations are recognized either as “public charities” (those that receive at least one-third of their annual income from the public) or “private foundations” (those that receive their primary financial support from an individual, a family, or a corporation). |
Monitoring and regulating charitable organizations falls upon the Internal Revenue Service (IRS) of the federal government. However, state governments also offer special tax benefits to charitable organizations, and are involved in monitoring and regulating nonprofits. | Monitoring and regulating charitable organizations falls upon the Internal Revenue Service (IRS) of the federal government. However, state governments also offer special tax benefits to charitable organizations, and are involved in monitoring and regulating nonprofits. | ||
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As greater legislation is considered to address the serious, but occasional abuses in the nonprofit sector, it is important that government not immerse the sector in bureaucracy and red tape that will stifle nonprofit organizations’ ability to serve. Rather, any policy changes need to allow this sector to continue to flourish and innovate, and enrich the lives of people both home and abroad. | As greater legislation is considered to address the serious, but occasional abuses in the nonprofit sector, it is important that government not immerse the sector in bureaucracy and red tape that will stifle nonprofit organizations’ ability to serve. Rather, any policy changes need to allow this sector to continue to flourish and innovate, and enrich the lives of people both home and abroad. | ||
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| + | ==See also== | ||
| + | [[How to obtain tax-exempt status]] | ||
==References== | ==References== | ||
* Anheier, Helmut, Marlies Glasius, and Mary Kaldor. [http://www.lse.ac.uk/Depts/global/Publications/Yearbooks/2001/2001chapter1.pdf Introducing Global Civil Society]. In H. Anheier, M. Glasius, and M. Kaldor (eds.), Centre for Civil Society (London School of Economics and Political Science Governance, London School of Economics), ''Global Civil Society Yearbook 2001''. Oxford: Oxford University Press. Oxford: Oxford University Press. ISBN 0199246440. | * Anheier, Helmut, Marlies Glasius, and Mary Kaldor. [http://www.lse.ac.uk/Depts/global/Publications/Yearbooks/2001/2001chapter1.pdf Introducing Global Civil Society]. In H. Anheier, M. Glasius, and M. Kaldor (eds.), Centre for Civil Society (London School of Economics and Political Science Governance, London School of Economics), ''Global Civil Society Yearbook 2001''. Oxford: Oxford University Press. Oxford: Oxford University Press. ISBN 0199246440. | ||
Latest revision as of 08:19, 17 July 2008
"There is scarcely an undertaking so small that Americans do not unite for it… As soon as several of the inhabitants of the United States have conceived a sentiment or an idea that they want to produce in the world, they seek each other out; and when they have found each other, they unite. . . Not only do they have commercial and industrial associations in which all take part, but they also have a thousand other kinds: religious, moral, grave, futile, very general and very particular, immense and very small. . . Everywhere that, at the head of a new undertaking, you see the government in France and a great lord in England, count on it that you will perceive an association in the United States." Alexis de Tocqueville, Democracy in America, 1831
In the 19th Century, French visitor and scholar Alexis de Tocqueville found a distinctive feature of American life, different from Europe at that time: citizens coming together in associations to address needs that were not being met by government and business. Tocqueville noted associations to form schools, distribute books, create prisons, and build hospitals. And this was not a new development in American life, but dated back to the colonial period. Some of these civic initiatives, such as schools, were deemed so essential that they subsequently were taken up and expanded by government to provide even wider benefit to citizens.
Non-governmental associations remain an enduring and integral condition of American life today. Currently, there are approximately 1.3 million known nonprofit charities, foundations and religious congregations in the United States. Many more associations have not been formally incorporated and recognized by the government.
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