Financial Aid on the Web

IRS Makes an Exception on Terror Aid (The New York Times)

"The Internal Revenue Service said [November 16] that it would allow charities responding to the Sept. 11 terrorist attacks to distribute money and benefits without first proving that families are in financial need," The New York Times reported. "The move breaks a logjam that had stalled several major charities from dispensing aid and relieves those charities from the risk of losing their tax-exempt status. . . . Under the agency's new standard, payments to all victims in the terror attacks will be presumed proper so long as they are made "in good faith using objective standards." The change applies only to charities responding to the terrorist attacks of September 11, the IRS stated, and is not meant as a blanket policy change for all tax-exempt organizations.

You can read the complete November 17, 2001 New York Times article at http://www.nytimes.com/2001/11/17/nyregion/17DONA.html. Free registration is required.

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Posted November 19, 2001, on the NASFAA Web Site www.nasfaa.org
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