Tag: Charity

KPMG Haiti Relief Effort Details

We finally nailed down some specifics from a trusted source on KPMG’s efforts to assist with Haiti relief.

The Americas Region (U.S., Canada, Central and South America, and Israel) have contributed $300,000 to the efforts so far, with a total goal of $500,000. These are the combined contributions of the both the firm and its employees. The International firm has pledged $500,000.

All contributions are going to UNICEF and Save the Children.

If you’ve got updates on your firm’s efforts or if you would like to notify us of what your firm is doing to assist the efforts in Haiti, email us at tips@goingconcern.com

Earlier:
We Knew Accounting Firms Were Helping Haiti

Tax Court: “…religious, charitable, scientific…literary, or educational purposes…” Doesn’t Mean “Sex with Kids.”

Private charitable efforts are as American as can be. Toqueville noted our vigorous civil society back in the early days:

Americans of all ages, all conditions, and all dispositions constantly form associations. They have not only commercial and manufacturing companies, in which all take part, but associations of a thousand other kinds, religious, moral, serious, futile, general or restricted, enormous or diminutive. The Americans make associations to give entertainments, to found seminaries, to build inns, to construct churches, to diffuse books, to send missionaries to the antipodes; in this manner they found hospitals, prisons, and schools. If it is proposed to inculcate some truth or to foster some feeling by the encouragement of a great example, they form a society.

The tax law recognizes this all-American tendency in Sec. 501(c)(3), which grants a tax exemption for associations with the proper purpose, like those in the headlines.

So along comes Eddie C. Risdal from Iowa. Eddie wanted tax exemption for a cause dear to his heart, “Mysteryboy Incorporation”:

MENBERS SHALL NOT PROMOOT, BUT WILL NOT DENY THE FACT OF PAST & PRESENT HUMAN HISTORY THAT HUMANKIND FROM YOUTH ON-THROUGH ADULTHOOD HAS IN MAJORITY BEEN SEXUAL ACTIVE WHETHER BE IN PROMISIOUS, DEVENTCY, OR EXPERIMENTATION SEXUAL ACTS, AND MENBERS WILL PROMOOT SAFE SEX EDUCATION AND SAY NO TO ILLEGAL DRUGS USES UNTIL THE EVENT THAT THEY BECOME LEGALIZED, MENBERS WILL PROMOOT FEED THE HUNGARY, SUEICIDE PREVENTION AND ANY AMENDED PROGRAMS AS THE INCORPORATION FINDS SUCH A PUBLIC NEED TO ADD SUCH PROGRAMS THAT WILL BENEFIT SOCIETY AT LARGE.

The IRS somehow found this suspicious and asked a few more questions. They came to this conclusion:

The facts of this case show that Mysteryboy Incorporation was organized and operating primarily for influencing a change in the laws concerning sexual exploitation of children.

The Tax Court found that cause a bit too close to Eddie’s heart (my emphasis):

The activities in which petitioner proposes to engage seek to decriminalize the type of behavior (1) for which Mr. Risdal, petitioner’s founder, sole director, sole officer, and executive director, was convicted and incarcerated and (2) which formed the basis for his having been adjudicated a sexually violent predator subject to civil commitment under Iowa Code Ann. ch. 229A (West 2006).10 On the record before us, we find that petitioner has failed to show that those activities will not provide Mr. Risdal with a platform from which he will seek to legitimize the illegal behaviors in which he has engaged, for which he was convicted, and which formed the basis on which he is civilly committed under the laws of the State of Iowa. On that record, we find that petitioner has failed to carry its burden of establishing that its proposed activities will not further the private interests of Mr. Risdal in violation of section 501(c)(3) and the regulations thereunder.

The moral? Civil society ends where civil commitment begins.

Cite: Mysteryboy Incorporation v. Commissioner, T.C. Memo 2010-13.

Joe Kristan is a tax shareholder for Roth & Company, a Des Moines, Iowa CPA firm, where he works with closely-held businesses and their owners. Prior to helping start Roth & Company, he worked for two of what are now the Final Four CPA firms. He writes the Tax Update Blog and is available for seminars, first communions, Bar Mitzvahs, etc. You can see all his posts for GC here.

Tax Changes for Haiti Donations Is Bad Legislation. So What?

charlie rangel.jpgNot surprisingly, the House passed H.R. 4462 earlier today in order to accelerate charitable donations made for the relief efforts in Haiti. The bill was sponsored by Charlie Rangel (D-NY) and Dave Camp (R-MI).
We pointed out the thoughts of Howard Gleckman over at Tax Vox this morning and our contributor, Joe Kristan chimed in agreement earlier over at Tax Update Blog:

When something bad happens, politicians reflexively reach for the tax code. They should put it down and back away slowly…As bad as Haiti is, it’s not the first disaster ever, and one more change to the tax law isn’t going to solve that sad country’s problems. Of course, the proposed changes are more about politicians making a show of concern than actually accomplishing anything.

While our sentiments are with these two tax gurus, let’s not forget that every single member of the House of Representatives is up for re-election in less than 10 months. No one was going to vote against this bill. The Senate will pass it and the POTUS will sign it.
Noting that the bill is bad policy misses the point. We’ve all gotten used to Congress making the tax law progressively worse, so is it really necessary to mention that two-thirds of taxpayers don’t itemize deductions and thus, won’t see any benefit at all on their 2009 tax returns?
Those two-thirds of taxpayers don’t think about the standard deduction when they donate money to anything. It’s not about solving the problems of the mind job of the IRC, it’s about encouraging people to do what they can to help.
Save the bitching about Congress for [insert anything else].
Haiti Tax Relief [TaxProf Blog]
hr-4462.pdf

Nasty CEO Patrick Byrne; Blogging Is a Good Idea; Against Tax Breaks for Haiti Relief

America’s Nastiest CEO [The Big Money via Gary Weiss]
We’re still wondering if the KPMG Salt Lake City office knows what they got themselves into by taking Overstock.com on as a client.
Gary Weiss notes:

The Big Money this afternoon came out with a devastating (and gutsy) article by former Fortune writer Roddy Boyd on the corporate crime petri dish that is Overstock.com, and its nuts CEO Patrick Byrne. The title is “America’s Nastiest CEO,” and it descristematically harassed and attacked critics to cover up his own incompetence and wrongdoing–stuff that actually is a lot worse than has previously been acknowledged.

Calling all Manchester United fans [AccMan]
Dennis Howlett — never shy with his opinion — segues into an argument for blogging after noting that the Manchester United don’t need to:

There is a blog post over on Social Media Today that demonstrates as well as just about anything I’ve seen written why you should almost never listen to folk who call themselves ‘social media experts/gurus/consultants.’ Awarding itself the grand title: World’s Most Valuable Soccer Team Doesn’t Get Social Media the author proceeds to show almost zero understanding of The Beautiful Game or the people who are part of that world.


After blowing up one person’s argument for social media, DH turns the tables back to why it’s a good idea:

I have for the longest time said that professionals should write blogs. Many seem bemused by the question: we’re too busy, what would we say? we don’t want to blatantly promote, we’re not sure clients would care…the list goes on. Many talk about networking and the need for face to face meetings in order to make the kind of marketing impression they believe will win business.

In case you still think that the traditional networking is still more your speed, DH continues:

Unlike football fans, clients don’t congregate in large numbers every Saturday afternoon although they may do so in smaller numbers in industry specific associations from time to time. And of course you should be making an effort to attend those kinds of event. But in the meantime and if you are serious about running a business as opposed to a practice, then surely it makes sense to stand alongside your clients?

Have you run out of excuses for your firm having a blog?
Don’t Give Special Tax Breaks for Haiti Relief [Tax Vox]
Before everyone gets excited about the possibility of your contributions to the Red Cross, Doctors without Borders, et al. being deductible for 2009, don’t forget that many of you won’t benefit from a tax standpoint:

The proposal won’t help the two-thirds of taxpayers who take the standard deduction since it only accelerates itemized deductions. Even among itemizers, those millions of givers who are contributing $10 by text message are not going to care much about whether they can write off those few dollars this year or next.
Those who might benefit–relatively high-earning itemizers who give substantial gifts–can easily address this cash flow problem under current law. All they’d need to do is change their withholding or estimated tax payments to reflect any unusually large gifts to Haiti relief.

And not only that, what about other charities that are not subject to the timing change? Don’t they still need money?

Btw, a 2008 paper by Jon Bakija and Bradley Heim finds that higher-income taxpayers are more likely to adjust their giving to reflect changes in their after-tax cost–another reason they’d be the biggest beneficiaries of this bill. But even for them, this small temporary timing change is not likely to matter very much.
Still, some people would change their behavior, and that troubles me. Will they reduce gifts to other worthy causes in favor of newly tax-favored Haiti-related charities? Many organizations are already struggling with major recession-driven reductions in contributions and this would hurt even more.

Haiti still needs everyone’s help, no question but don’t be shocked if Congress’ latest attempt at helping out doesn’t turn out to be that helpful.

(UPDATE 2) We Knew Accounting Firms Were Helping Haiti

Thumbnail image for thumbs up2.jpgWe just had to ask. In response to our post from this morning we’ve received several emails about what firms have done so far in the response to the devastation that was caused by the earthquake in Haiti:
• Deloitte – The firm contributed $100,000 to the Red Cross and Deloitte professionals are encouraged to donate to either the Red Cross/International Response Fund (immediate disaster assistance) or to the United Way Worldwide Disaster Fund are for long-term relief efforts. Donations will be earmarked for Earthquake Recovery.
• Moss Adams – The Firm is matching 100% of employee contributions up to $100,000. As of today, partner and employee contributions amounted to $30,000 and the firm is matching these contributions with $30,000 donations to both the Red Cross and World Vision.
• Ernst & Young – The Firm has created the “Ernst & Young Haiti Earthquake Relief Fund” and donated to $100,000 to get things started. All the funds donated by the firm and its professionals will go directly to Save the Children, Doctors without Borders, and Partners in Health.
• BDO – Jeremy Newman posted today on his blog about the firm’s efforts, including the office in The British Virgin Islands.
• Grant Thornton – The firm is matching employee contributions up to $50,000. The funds will be donated to the Red Cross and The Salvation Army.
• McKonly & Asbury – Scott Heintzelman — The Exuberant Accountant — along with his fellow partners and employees are working with Hope International to raise funds for the relief efforts. A spokesperson for the firm told GC that the firm is expecting to raise several thousands dollars.
• Crowe Horwath – Matching employee contributions up to $50,000. All funds are going to the Red Cross and UNICEF.
Keep us updated with your firm’s efforts and we’ll continue to post them.

Why Haven’t We Heard About Accounting Firms Helping Out Haiti?

Relief efforts.jpgBecause we’ve been looking for some PR and haven’t seen much.
We’ve got no doubt that accounting firms large and small are doing their part to help out the relief efforts there but we’re surprised about the lack of PR. Other than a brief memo (PDF below) from the AICPA that we saw on Twitter this morning, we haven’t seen much of anything.
Our sister site Above the Law has covered the many law firms that have donated to the efforts in Haiti but we haven’t seen anything on accounting firm donations efforts. Even, everyone’s favorite ward of the state, Citi, is helping out in the big way.
Maybe it’s being kept internal but it seems like an opportunity to demonstrate what firms are doing to help.
If your firm has made efforts, or if you’re a PR professional for your firm and you have a press release describing your firm’s efforts let us know and we’ll spread the good word.
AICPA.pdf

Are You Ready to Build Some Bears KPMG?

Tim_Bear_King_jpeg.jpg“Tim, you really shouldn’t have. Seriously. I’m a King, for crying out loud.”

In case you’ve forgotten, KPMG’s bear-building extravaganza is tomorrow and word around the campfire is that everyone is psyched.

At least one office is dedicating the better part of the morning to the “Town Hall” portion of festivities which sounds like it could be a real hoot. We’re guessing there might be a little session regarding stationery controls, given the whole Canopy sitch.

Since all the offices are having their get-downs tomorrow keep us updated throughout the day on anything interesting that comes up.

The KPMG Dress Code Now Accommodates Ugly Christmas Sweaters

Ugly Sweaters 130.jpgAt least for one day, anyway.

You’re all acutely aware that many firms are opting to forgo holiday parties this season in favor of charitable activities.

Regardless of your desire — and our sincerest hopes for you — to get cop-slugging drunk on your firm’s dime, the commitment of time to charity is admirable. KPMG is spending an entire day building bears and wrapping them with books. We’re not sure how that will work but whatever.

As an added bonus, we heard that at least one office is attempting to make things more festive:

Picture 4.png

If some of you aren’t able to get behind the celebration of hideous Clark Griswold-esque sweaters for the sake of sport, shame on you. In fact, since the charitable activities are mandatory (as we understand), we’d go so far to suggest that the donning of ugly sweaters should also be mandatory. Judging by many or your fashion proclivities, this will be as easy as opening your closet.