Investigators have questions about Solyndra investor’s charitable tax status

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Source: Wash. Post

The nonprofit organization that was the largest investor in the failed solar company Solyndra contributes only a small portion of its assets toward community work, raising “serious questions” about its charitable tax status, according to Senate investigators.

Sen. Charles Grassley (R-Iowa) urged federal officials Tuesday to tighten loopholes that he said allow the George Kaiser Family Foundation and similar organizations to sidestep the payout requirements governing most public foundations.

“The recent Solyndra scandal highlights the need for further reforms,” Grassley said Tuesday at a Senate Finance Committee hearing. “With Solyndra, the government didn’t just lose out on its investment through the $535 million loan guarantee . It also lost out on the tremendous subsidy it provided the George Kaiser Family Foundation through the charitable contribution deduction.”

In a letter to Treasury Secretary Timothy F. Geithner and IRS Commissioner Douglas H. Shulman, Grassley urged them to finalize rules governing what are known as supporting organizations.

Read more: http://www.washingtonpost.com/politics/investigators-have-questions-about-solyndra-investors-charitable-tax-status/2011/10/18/gIQApSjpuL_singlePage.html