This paper seeks to lay out a proposal to redefine what it takes to receive tax-deductible donations. Part II of this paper will summarize the current state of the law as it applies to the charitable contribution deduction and the qualification for tax exemption under the Internal Revenue Code. Part III discusses the Charities Act 2006, a recent British act aimed at attempting to redefine charity for England and Wales by requiring organizations to prove that they provide a public benefit before receiving the benefits of being a charity. Part IV proposes additions and changes to the Internal Revenue Code which, if implemented, would redefine the requirements for an organization to receive tax-deductible contributions based on their ability to provide for the public benefit. Finally, this paper concludes that change is needed to ensure that only those organizations providing sufficient public benefits are receiving tax-deductible contributions.
Jennifer McCrabb Black, Reforming 501(c)(3): Putting the "Charity" Back in the Charitable Deduction, 13 Rich. J. L. & Pub. Int. 251 (2010).