Tax Exemption Legislation Could Be Good News for Political Donors

The Republican lead Congress recently passed some new legislation – without garnering much attention at all – that could be a big boon for major donors of political organizations and groups. The bill could protect big donors from having to pay gift taxes on their large donations to these political groups.
The bill, which is headed to the senate, could make way for even more donations in coming years from nonprofit groups that are registered as 501(c) groups, especially in 2016, the country’s next presidential year. Right now, it appears that these big donors rarely pay taxes on their large donations, but as it currently stands the law does not offer specific protection from being assessed with gift taxes. That fact makes some donors a little nervous that the IRS could come knocking.
However, the new piece of legislation that Congress just recently passed would make it clear that gift taxes would not apply to groups that are registered under the Tax Code sections 501(c)4, (c)5 or (c)6. That means most of the big donor organizations that are registered under these sections would be immune from paying gift taxes.
This would obviously be good news for the many ultra-wealthy individuals who are deeply involved in politics and political movements. By having assurances that their donations would never be subject to the gift tax, the amount of money they can donate could increase even more.
Creating a Meaningful Life | Wally Hawley
About Wally Hawley Wally Hawley is a co-founder of InterWest Partners (1979), one of the larger venture capital partnerships in the United States, formed to make equity investments in diversified U.S. growth companies. His prior experience includes seven years as President of SHV North America Holding Corp., a wholly owned subsidiary of a Netherlands…
Liberal Arts in the 21st Century | Reed Wilcox
About Reed Wilcox Reed Wilcox is president of Southern Virginia University. He previously served as co-founder and chief development officer, and currently serves on the board of directors of Clene Nanomedicine, a science-based company with proprietary technology integrating nanotechnology, advanced materials science, plasma physics, and biotechnology. Clene’s proprietary nanomedicine technology is a new form of…
Making a Difference | Sharlene Wells Hawkes
About Sharlene Wells Hawkes Sharlene Hawkes was previously VP of Communications with Monarch Health Sciences where she was responsible for all corporate brand communications. Additionally, she was one of the first women to work for ESPN and worked as an award-winning sportscaster nearly 15 years, covering such events as World Cup Soccer, the Kentucky…
The Art and Science of Creating an Album | Chris Shreenan-Dyck
About Chris Shreenan-Dyck Chris Shreenan-Dyck is a renowned Canadian music producer and recording engineer. He was nominated for Engineer Of The Year at the 2012 Juno Awards, and five of the albums he has worked on have won Junos (Canada’s version of the Grammy Award), as well as having received multiple nominations. Chris has…