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• Author: Bruce R. Hopkins
• Profession: Leading authority on the law of tax-exempt organizations
• Pages: 256-269

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macroeconomic analysis

The term “macroeconomic analysis” refers to an approach to assessment, at the federal level

of government, of the econom ic impact of major tax (and other) legislation. This assessment

methodology is to be contrasted with the more conventional model, which focuses on whether

an item of legislation is revenue neutral. The U.S. House of Representatives incorporated the

macroeconomic analysis approach (informally known as “dynamic scoring”) into its rules at

the beginning of 2015. A paper accompanying this rule change stated that, “[i]nstead of con-

centrating on the top line—whether it’s good for the Treasury—elected ocials would [using

macroeconomic analysis] concentrate on the bottom line—whether it’s good for the taxpayer.”

Conventional wisd om has it that this approach may faci litate enactment of major tax re duction

legislationby showing that the resultingeconomic growthwould substantially reducetheir cost

to the federal government.

mailing list

A “mailing list” is a compilation of name s and addresses of indiv iduals. Nonprot organiza-

tions frequently maintain mailing lists, such as lists of their members and/or donors.Aspart

of this maintenance proce ss, nonprot organizations may rent or exchange these lists with

other organizations. Where the organizations involved on both sides of one of these rental or

exchange transactions are organizati ons eligible to receive tax-deductible charitable contribu-

tions, the rental or exchange activity is not regarded as an unrelatedbusiness.[FR§5.7(b)(6);

EO §25.2(k); UB §4.10].

maintenance requirement, pooled income fund

To qualify under the federal tax law,apooled income fund must be “maintained” by the

same public charity to or for the use of which the remainder interest in the gift properties

is contributed (IRC §642(c)(5)(E)). This requirement of maintenance is satised where the

public charity exercises control,directly or indirectly, over the fund. A national organization

may maintain a pooled inc ome fund on behalf of its chapters or similar auxiliar y groups. [CG

§§ 13.2(e), 13.9(a); SM p. 237] (also Multi-organizationp ooled income fund).

Bruce R. Hopkins’ Nonprot Law Dictionary, First Edition. Bruce R. Hopkins.

©2015 Bruce R. Hopkins. Published 2015 by John Wiley& S ons,Inc.