Other Developments

• DOI: http://doi.org/10.1002/npc.30398
• Date: 01 November 2017
• Published date: 01 November 2017

Bruce R. Hopkins’ NONPROFIT COUNSEL

November 20178THE LAW OF TAX-EXEMPT ORGANIZATIONS MONTHLY

Bruce R. Hopkins’ Nonprofit Counsel DOI:10.1002/npc

IRS PUBLISHES DATA ON

INDIVIDUALS’ NONCASH

GIFTS IN 2014

The IRS, in the Summer 2017 issue of the Statistics of

Income Bulletin, published data concerning charitable

noncash gifts by individuals who itemized deductions

in 2014. These gifts had a value of $65.3 billion, as

reported on 22.2 million tax returns. About one-third of

these returns reported $60.4 billion in charitable con-

tribution deductions using Form 8283. Of this amount,

over one-half went to private foundations ($18.9 billion)

and large public charities ($12.2 billion).

Corporate stock accounted for the largest amount

and percentage of total noncash gifts in that year ($29.2

billion; 48.4 percent). Other gift categories are clothing

($10.3 billion), household items ($5 billion), and con-

servation easements ($3.2 billion). The highest average

contribution amount per return was for easements, with

slightly more than 3,200 returns reflecting an average

of $983,651 per return. The average corporate stock

deduction was $183,200 per return. ◆

NY TIMES ANALYSIS:

AFFIRMATIVE ACTION

PROGRAMS FAILING

An analysis by The New York Times, published on Sep-

tember 18, concludes that affirmative action programs

at the nation’s colleges and universities are generally not

performing as some may think, in that blacks and Hispanics

remain underrepresented. In an article titled “Elite Colleges

Struggle to Meet Diversity Goals,” the Times stated that

“black and Hispanic freshmen were more underrepresented

at the nation’s top schools in 2015 than they were in 1980.”

The Times reported that, “on campuses across the

country, many admissions officials say that affirmative action

as it is traditionally understood—taking race into consider-

ation when assessing applications—falls short as a diversity

strategy, and that further-reaching efforts are needed to

recruit a student body that even comes close to reflecting

the country’s demographics.” The article discusses recruit-

ment efforts at several colleges and universities. [6.2(e)] ◆

OTHER DEVELOPMENTS

◆The IRS has decided to appeal the decision by the US

District Court for the District of Columbia that it lacks

the authority to charge user fees in connection with the

issuance of preparer tax identification numbers (Steele v.

United States (summarized in the August 2017 issue)).

The IRS filed its notice of appeal on September 6, with

the agency arguing that it will be irreparably harmed if

it is not allowed to charge the fees. That argument is

weak. The IRS is taking a big chance here; the court of

appeals may have something to say, adverse to the IRS,

about the scope of the agency’s jurisdiction and author-

ity that spreads to other areas (e.g., governance). [5.7(a)]

◆The Tax Injunction Act was deployed to prevent federal

courts from considering the constitutionality of a state

property tax exemption, with the US Court of Appeals

for the Sixth Circuit affirming, on September 20, a lower

court on the point (Islamic Center of Nashville v. State of

Tennessee). The religious entity involved lost its property

tax exemption when it transferred title to the property

involved to a bank, in accordance with Islamic doctrine.

When title reverted, the state refused to apply the tax

exemption retroactively. The constitutional law challenge

does not belong in federal court, the court of appeals

ruled, because the state’s court system provides a “plain,

speedy, and efficient alternative to federal-court review.”

Quote of the Month: “This unified framework [see the

first article] serves as a template for the tax-writing com-

mittees that will develop legislation through a transparent

and inclusive committee process. The committees will also

develop additional reforms to improve the efficiency and

effectiveness of tax laws and to effectuate the goals of

the framework. The Chairmen welcome and encourage

bipartisan support and participation in the process .” ◆

Each article in the newsletter on a tax-exempt organizations law topic ends with a citation to the appropriate chapter(s) or subchapter(s)

in Hopkins, The Law of Tax-Exempt Organizations, Eleventh Edition (Wiley, 2017 cumulative supplement). This is done to provide ready

access to additional and background information concerning these articles. For example, underlying information concerning the sec-

ond article in this issue is available in Chapter 12 § 4(b) of the book, and thus the citation is referenced as [12.4(b)]. Likewise, each

article in the newsletter on a charitable giving law topic ends with a citation to the appropriate chapter(s) or subchapter(s) in Hopkins,

The Tax Law of Charitable Giving, Fifth Edition (Wiley, 2017 cumulative supplement). For example, underlying information concerning

the fifth article in this issue is available in Chapter 21 § 4 of the book, and thus the citation is referenced as [21.4].

This newsletter is a stand-alone publication. An inventory of articles in the newsletter since its inception in 1983, and a subject

matter index, as well as an index of the court opinions, IRS revenue rulings and procedures, IRS technical advice memoranda,

and IRS private letter rulings discussed in the newsletter, are available at www.nonprofitlawcenter.com. For those who have the

books, the newsletter also provides monthly updates. Both books are annually supplemented. Questions concerning nonprofit law

developments in general may be sent to brucerhopkins@brucerhopkinslaw.com. Also, a comprehensive summary of nonprofit law

is available in the Bruce R. Hopkins Nonprofit Law Library, an e-book published by Wiley. Follow BRHopkins_NPLaw on Twitter.

The newsletter has a dedicated website. Please visit www.hopkinsnonprofitcounsel.com.