Hearing of the Oversight Subcommittee of the House Ways and Means Committee - Public Charities

Hearing

I thank the Chairman for holding this hearing. This is the Subcommittee's second hearing on tax-exempt organizations in this Congress. Today, we will examine public charities and their complex structures.

Public charities serve an important role in our society. They often fill the gap between what the government can provide and Americans' basic needs. These charities feed our hungry, care for our sick, and preserve our culture and the arts.

As public charities become larger and more complex, I am concerned that they may be engaging in activities that are not part of their charitable mission. Some may be using for-profit subsidiaries to engage in business that is not related to their charitable mission.

Some may be using related organizations to engage in certain activities indirectly that they could not engage in directly. As we move toward tax reform, we should consider whether these rules are working as intended.

I look forward to hearing from our witnesses today about these issues. I would like to learn more about how the Internal Revenue Service oversees nearly two million tax-exempt organizations with a budget of about $100 million and about 860 employees. I also look forward to hearing how the new Form 990 helps both the agency and the public oversee the activities of charitable organizations.

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