TARGET: SUPPORTING ORGANIZATIONSTARGET: SUPPORTING ORGANIZATIONS

Rorie M. Sherman Editor in Chief

David T. Leibell and Daniel L. Daniels of Cummings & Lockwood LLC in Stamford, Conn., have this report:

Momentum is building to gut the Type III supporting organization. Supporting organizations in general and Type IIIs in particular were bashed during recent hearings in the Senate Finance Committee. The press has long been beating the drums about potential donor abuse of SOs, with The Wall Street Journal publishing “Gimme Shelter: the SO Trend: How to Succeed in Charity Without Really Giving” back in 1998, and The New York Times on April 25 publishing “Big Tax Break Often Bypasses Idea of Charity.”

Now it seems that Congress is poised to do something dramatic — either eliminate Type IIIs completely or chang...