Tribal philanthropy has emerged as an important tool to build capacity and insure tribal control of assets. A critical part of our advocacy work is devoted to changing Section 7871 IRS tax code to recognize tribes and tribal organizations as philanthropic entities eligible for the same tax treatment states enjoy. Currently, unlike state giving, tribal giving to charitable organizations is not classified as “public support.” Thus, by accepting tribal support, a non-profit organization could jeopardize its classification as a public charity. And unlike state created organizations, tribal charitable organizations may not receive 501(c)(3) public charity status. Failure to designate tribal charities as public charities is really just a “glitch” in the tax code, but it creates an obstacle to effective tribal giving and getting the simple change needed has required an involved and sustained effort.

Learn more about IRS Section 7871.