The Senate Finance Committee held a hearing last week to discuss "Charities and Charitable Giving: Proposals for Reform." The chairman, Senator Charles Grassley (R-IA), took a strong stand against tax abuse. "It will take a two-pronged approach to fix the problems in the nonprofit sector," said Grassley, an IHRSAPAC recipient. "One is better targeted enforcement from the IRS. The other is legislative changes to reflect the new realities in charity."
IRS Commissioner Mark Everson had a similar message. "We are at an important juncture," he noted. "Tax abuse is increasingly present in the sector and we must work to address it." He also accused some tax-exempt charities of "wantonly abusing the generosity and faith of the public."
Everson's testimony is of particular importance to the commercial fitness industry due to his previous expression of concern regarding charitable abuses by tax-exempt organizations that "allow themselves to further purposes other than those for which tax-exemption is authorized."
Indiana YWCA to Close Sports Club
On Friday, the Fort Wayne YWCA will do away with its Sports Club.
Officials say the club wasn't meeting goals and that the decision will save the YWCA about $1.3 million of its $3.5 million annual budget.
The decision was made not only to cut costs, said YWCA Executive Director Becky Hill, but to help the board and staff more effectively focus on the YWCA's new national "branding" campaign: "Eliminating Racism and Empowering Women." Every future decision the board makes, Hill said, would be made according to how it fulfills the branding campaign.
Are you thinking about expanding your club? Would current and specific financial operational information be useful to you? Participate in IHRSA's 2005 Industry Data Survey (IDS) and get the information you need.
This annual survey collects information about club revenues, expenses, new memberships, member retention, payroll, and more.
Complete the secure and confidential IDS by April 29 and receive a free, confidential Company Performance Report as well as the survey results, as they appear in Profiles of Success!
Please contact Katie Rollauer at (800) 228-4772 ext. 146 or research@ihrsa.org with any questions.
Don't Miss These Two Events!
There's still time to register for IHRSA's 3rd annual Legislative Summit, to be held May 18-19 in Washington, DC. No political experience is necessary -- just have an interest in making a difference in your community, your state, or our nation's capital.
Also, owners operators of smaller, independently owned clubs will want to register by Friday for IHRSA's all new Club Business Entrepreneur Conference in order to receive the lowest registration rate. This show will be held September 8- 10, 2005 in Las Vegas.
State Legislative Updates
California: AB 602, which would have required clubs to maintain surety bonds, has been favorably amended by IHRSA so that clubs will only be required to place in escrow money received from consumers before a fitness facility opens for business.
Delaware: HB 54, which would provide businesses that obtain AEDs with a $100 tax credit, will be heard on Thursday by the House Revenue and Finance Committee.
Illinois: HB 2525, which would exclude optional services from the cap on health club services and would clarify that $2,500 is per person, has been engrossed.
