If the quarterly reporting system is adopted, it is strongly urged that a special exemption be made for charitable gifts and that these gifts should be on an annual basis under the present law. The quarterly report may result in discouraging the year round giving cycle and that donors would postpone their gifts until the last quarter of the year. Sincerely yours, FATHER THOMAS SCHEETS, JOHN M. MARTIN, Jr., Wellesley, Mass., September 1, 1970. Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: If indeed the quarterly gift tax filing proposal is enacted, I urge you to see that a specific exemption be made for charitable gifts. It would be extremely inconvenient for the majority of our donors if they were required to file a quarterly report on their charitable gifts. I am sure you can understand how this would discourage many people from making contributions. At a time when private institutions are becoming increasingly dependent upon contributions it behooves us to make giving as uncomplicated as possible. I urge you, therefore, to exempt charitable gifts from this proposed quarterly reporting program. Thank you very much. JOHN M. MARTIN, Jr., Chief Counsel, Committee on Ways and Means, JOSEPH M. HOBBS, Assistant Director for Resources. WESLEY MEDICAL CENTER, Wichita, Kans., September 4, 1970. DEAR MR. MARTIN: It has been recently called to my attention that a treasury proposal is now being considered by the House Ways and Means Committee which would require donors to file quarterly (instead of annual) Federal Gift Tax returns for many charitable gifts. It would seem to me that the present law which was enacted in the new 1969 tax law has provided an adequate and new measure of information and controls for gifts to any one charity in an amount of $3,000 for a one year tax period, or for any charitable gift of a future interest regardless of size. The proposed bill would require quarterly filing of this Gift Tax return for all gifts, including charitable gifts, above the $3.000 floor. In my opinion this would place an unnecessary burden on persons and others who give generous support to charitable institutions, such as the Wesley Medical Center which I represent. I would urge that, if the quarterly gift tax filing proposal is enacted, the specific exemption be made for charitable gifts in these cases where charitable gifts are reportable, the report should be on an annual basis, as under the present law. The requirement for quarterly reporting of charitable gifts could only result in discouraging year-round giving and result in donors postponing gifts to the end of the year, so that only one tax return, instead of four, need to be filed. This undoubtedly would result in fewer dollars being given to charitable institutions. There would be many causes for this including the inability of the various charitable institutions to make their appeals at the time most appropriate to the tax year of given prospective donors. This arrangement would also make it necessary for charitable institutions to concentrate their activities at given periods of the year which would make necessary enlargement of staffs at those periods and the utilization of more space than is necessary when these activities can be spread over the entire year. I sincerely trust that you will call the attention of the committee members to my concerns in this matter. Sincerely, JAMES S. LANSDOWNE II, Director of Development. Mr. JOHN M. MARTIN, Jr., WEST VIRGINIA UNIVERSITY FOUNDATION, INC., Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: I am concerned about the possible adverse effect of the proposed changes in filing gift tax returns. This proposed change will be one more slight inconvenience which may cause a potential giver to defer making a charitable contribution. Should the change be made, I strongly urge that charitable gifts be made exempt from the proposed quarterly filing and the present annual filing requirement retained. Sincerely, ROGER C. JEFFRIES, Development Officer for Deferred Giving. WEST VIRGINIA WESLEYAN COLLEGE, Buckhannon, W. Va., September 3, 1970. Mr. JOHN M. MARTIN, Jr., Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: West Virginia Wesleyan College is a private, church-related college supported by student tuition and fees and private contributions. It is not a state tax supported institution. We are deeply concerned about the change now being studied by the House Ways and Means Committee which would require a quarterly filing of the federal gift tax return rather than the annual filing as now required. It is becoming increasingly difficult to secure charitable gifts to support private educational institutions and we feel the proposed revision in the requirement would seriously and adversely affect the fund raising efforts of all charitable and benevolent institutions. We sincerely request that if such a revision is seriously considered by your Committee that consideration be given to exempting charitable gifts from the new requirement thus leaving them to be reported on an annual basis as at present. Your presentation of our concern to the House Ways and Means Committee will be appreciated. Sincerely, ASHTON A. ALMAND, Vice President for Financial Affairs. WILKES COLLEGE, Mr. JOHN M. MARTIN, Jr., Wilkes-Barre, Pa., September 9, 1970. Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: It has been called to my attention that a Treasury proposal now being considered by the House Ways and Means Committee would require the filing of gift tax returns and payment of gift taxes on a quarterly basis. Unless there is great advantage to the government to be derived from this proposal, I hope that it will not be adopted. Such a proposal will complicate giving and will perhaps discourage philanthropy by its "nuisance" effect. Sincerely yours, EUGENE S. FARLEY, JOHN M. MARTIN, Jr., WITTENBERG UNIVERSITY, OFFICE OF THE PRESIDENT, Springfield, Ohio, September 14, 1970. Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: The Treasury proposal to require the filing of quarterly Federal gift tax returns for charitable gifts would be harmful to our financial support. As a public charity we are dependent upon year-round giving. If the proposal is enacted donors may be discouraged in their giving until the end of the yearso that only one tax return instead of four need be filed. The delay in giving may eliminate the gift entirely or cause undue pressure on our much needed monthly and quarterly income. We urge that an exemption be made for charitable gifts in the proposal. In those cases where charitable gifts are reportable, the report should be on an annual basis as under present law. We appreciate your consideration and assistance. G. KENNETH ANDEEN, President. WITTENBERG UNIVERSITY, Mr. JOHN M. MARTIN, Jr., OFFICE OF UNIVERSITY DEVELOPMENT, Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: We are concerned about the proposed legislation which would require quarterly reporting of all gifts, charitable as well as non-charitable. We urge the exemption of charitable gifts from this provision for the reason that the requirement for quarterly reporting would discourage year round giving to institutions such as ours and result in donors postponing gifts to the end of the year so that only one return instead of four would be required. Sincerely yours, JOHN M. MARTIN, Jr., LESTER S. CROWL, Director of Development. WOODHAVEN LEARNING CENTER, Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: It is my understanding that a contemplated Treasury proposal that is now being considered by the House Ways and Means Committee would require donors to file quarterly instead of annual Federal Gift Tax return. A proposed bill requiring these quarterly filing gift tax returns on all gifts above the three thousand dollar floor would be, very determinal to gift programs, not only at the Woodhaven Learning Center, but at many other institutions, such as ours. We, as do other organizations, have a number of gifts that are right at the three thousand dollar floor or just above it and the people that we are dealing with are not going to react very favorably to having to file quarterly reports and I honestly believe that it will do one of two things: the donors will either reduce the amount of their giving or they may not give at all. We the undersigned earnestly urge that if a quarterly gift tax filing proposal is enacted that a specific exemption be made for charitable gifts. In these cases where charitable gifts are reportable we have to report on an annual basis as under the present law. Sincerely, CHARLES M. PALMER, Administrator. WARREN L. CONNER, Associate Administrator. JOHN M. MARTIN, Jr., WORLD LITERATURE CRUSADE, Studio City, Calif., September 10, 1970. Chief Counsel, Committee on Ways and Means, DEAR SIR: I am writing this letter with regard to the Treasury proposal now being considered by the House Ways and Means Committee whereby donors would be required to file quarterly (instead of annual) Federal gift tax returns for many charitable gifts. At the present time only one annual return is required and under the present law, it must be submitted by April 15th, following the year of the gift. I would like to request that if the quarterly gift tax filing proposal is enacted, a specific exemption be made for charitable gifts. In other words, where charitable gifts are reportable, it would be a tremendous help if the report should be on an annual basis as under the present law. If it was required that a report be submitted for charitable gifts each quarter, it could discourage the year-round giving of such contributions. Donors might be inclined to postpone gifts to the end of the year. If a gift is postponed, it may possibly never be given. The best time for a donor to make a gift is at the time they feel impressed to do so. I feel that it would be in the best interests of charitable organizations where charitable gifts are reported, that the report should be on an annual basis as under the present regulations. I certainly hope that the Committee on Ways and Means would give favorable consideration to this appeal. Very truly yours, JOHN M. MARTIN, Jr., Chief Counsel, Committee on Ways and Means, W. E. MCALISTER, Executive Vice President. AUSTIN, TEX., September 11, 1970. DEAR MR. MARTIN: Pursuant to a Treasury Department proposal now being considered by the House Ways and Means Committee, donors to charity would be required to file quarterly (instead of annually) federal gift tax returns for many charitable gifts. The Treasury's bill would require the filing of gift tax returns and payment of gift taxes on a quarterly basis-on the last day of the month following the end of the calendar quarter in which the gift is made. Present law requires that a gift tax return be filed for charitable gifts when gifts from any one charity total more than $3,000 for the year, or for any charitable gift of a future interest regardless of its size. Under the present law, the gift tax return for all gifts, both charitable and non-charitable, is due by April 15 following the year of the gift. We feel that in those cases where charitable gifts are reportable, the reports should be on an annual basis as under present law. The requirement for quarterly reporting of charitable gifts would discourage year-round giving and result in donors postponing gifts until the end of the year, so that only one tax return instead of four, need be filed. We urge you to oppose the Treasury Department's proposal now submitted to the House Ways and Means Committee because of its far-reaching implications adverse to the interest of many worthwhile charitable organizations who are dependent upon the year-round benevolence of the general public for the continuance of many worthwhile programs. Sincerely yours, DONALD B. YARBROUGH. Mr. JOHN M. MARTIN, Jr., YOUNG LIFE CAMPAIGN, Colorado Springs, Colo., September 2, 1970. Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: You now have before you a proposal for quarterly gift tax filing which will apply to charitable gifts as well as gifts to individuals. If the quarterly gift tax filling proposal is enacted. I would like to go on record as strongly favoring a specific exemption for charitable gifts. Quarterly reporting 50-374-70-23 for gifts of $3,000.00 or more could prove to be an inhibitor to such gifts and I do not believe that this is intended. We appreciate your thoughtful consideration of this request. Sincerely, JOHN CARTER. Director of Development. YOUNG MEN'S CHRISTIAN ASSOCIATION JOHN M. MARTIN, Jr., OF THE HAMMOND AREA, INC., Hammond, Ind., September 3, 1970. Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: The continuance of laws and regulations which promote charitable giving has been greatly appreciated by donors and tax exempt agencies. The values which accrue from such giving are numerous. The Treasury proposal for quarterly gift and charitable returns could create problems for tax exempt organizations. Year around giving is vital to survival and effective services. The quarterly report could cause donors to defer giving to year end to reduce the number of reports to be filed. If the quarterly gift tax filing proposal is enacted, we urge a specific exemption be made for charitable gifts. The present law requiring annual reporting would be more beneficial and still provide information to the Treasury. Thank you for your help in making known this point of view in the deliberations. Respectfully, VICTOR L. PETERSON, Executive Director. YOUNG MEN'S CHRISTIAN ASSOCIATION OF LANSING, Mr. JOHN M. MARTIN, Jr., DEAR MR. MARTIN: We have reviewed the suggested change in the Treasury bill regarding the filing of gift tax returns and the payment of gift taxes on a quarterly basis. It seems to us that a change of this kind would be highly undesirable as far as the donor and the donee both are concerned. Because of the red tape involved in filing this report, it would tend to limit the donor to making his gifts during one quarter of the year rather than spreading them out over the year. This, in turn, might deter large gifts to charitable organizations. We certainly hope that the Ways and Means Committee will reconsider this portion of the proposal as it relates to charitable gifts. With the increased emphasis on the part of organizations such as the YMCA and other non-tax supported agencis, on expanding their list of donors who make sizable gifts, we feel that this change would be detrimental. Cordially yours, C. LOYD RYAN, Assistant Executive Director. YOUNG MEN'S CHRISTIAN ASSOCIATION OF PHILADELPHIA, JOHN M. MARTIN, Jr., Chief Counsel, Committee on Ways and Means, DEAR MR. MARTIN: I would like to register my concern and opposition to the bill now under consideration by the House Ways and Means Committee relative to requiring the filing of quarterly gift tax returns. This in my opinion would discourage voluntary giving to organization such as the YMCA, which is largely dependent upon the voluntary dollar for the carrying out of its objective in serving the community. If such a bill is passed, I earnestly request that an exception be made for charitable gifts. Sincerely, RUSSELL URQUHART, |