[r59] Rep. Smith’s community foundations bill passes House

Posted by: Lindsay Devlin  | Friday, April 17, 2015

STATEHOUSE – State Representative Milo Smith (R-Columbus) sponsored Senate Bill (SB) 317 which defines an "eligible community foundation" for state income tax purposes. The bill passed out of the House unanimously.

The definition requires a community foundation to support a broad range of charitable activities and for it to be independent, nonreligious charitable institution with separate donors.

 “I believe the legislation will provide Hoosiers with a greater level of confidence in the organization they are donating to,” said Rep. Smith. “This bill will ensure that charitable organizations must be considered community foundations in order to receive a tax benefit.”

The criteria for community foundation under this bill will be as follows:

  • Is a tax exempt charitable organization;
  • Satisfies the public support test for public charities, which requires that am organization receive at least one-third of its support from contributions of the general public;
  • Is an autonomous, nonsectarian philanthropic institution with component funds established by many separate donors;
  • Is accredited under national standards for United States Community Foundations; and
  • Supports a broad range of charitable activities in a specific area of the state.

Visit iga.in.gov to learn more about SB 317.