Letters.

News or Views?

The special report "ABA Gives Thumbs Down to Lawyers' Fee-Sharing," (JofA, Sept.00, page 22) purports to be a news item, but in my opinion the editorial intent of the article cannot be mistaken.

The House of Delegates of the American Bar Association, which may be referred to as the AICPA of the legal profession, voted 316 to 105 in favor of a resolution against multidisciplinary practices (MDPs).

The article quotes Gary T. Johnson, an ABA delegate from Illinois, who expressed his opinion opposing MDPs.

Surprisingly, it also quotes Jeffrey Peck, managing director of Arthur Andersen's office of government affairs in Washington, D.C., who extensively berates the ABA for its decision opposing MDPs. The article might also have reported that the largest law firm in England is Arthur Andersen.

To add to the non-objectivity of the report is a quote from Richard Miller, secretary and general counsel of the AICPA: "I find it unfortunate that the ABA failed to demonstrate any leadership on the MDP issue." Would the AICPA look favorably on the ABA's or any other national organization's criticism of a resolution by the Institute's governing body?

I believe one can only conclude that the article, written by a JofA editor, was intended to represent a viewpoint rather than a news item. Although I have an open mind on the MDP issue, I believe the national organization of lawyers has more valid jurisdiction on matters affecting attorneys than does a national association of CPAs.

Eli Mason, CPA New York City 

More About Standards

I agree with the assessment of the letter writer regarding the FASB ("Agrees with Need for Change," JofA, Sept.00, page 14). Some of the pronouncements are prime material for the repertoire of the Theatre of the Absurd.

However, I do not believe the AICPA should be allowed to participate in the standard-setting process. This organization is engrossed in its own survival and expansion. Minimal lip service is paid to what once was the accounting profession. Read or re-read the published materials supporting what is called the "Vision." Some people may favor calling this vision a nightmare.

I suggest that each member of the FASB should be required to read at least once a year the book, "Making Accounting Policy," by David Solomons.

Delmer P. Hylton Emeritus Professor of Accountancy Wake Forest University Winston-Salem, North Carolina 

Charities and Form 990

As a specialist in the not-for-profit industry, I found "Selecting the Right Charity (JofA, Sept.00, page 19) most interesting. However, there are two issues mentioned I would like to address.

* The article suggests that the annual information statement, IRS form 990, "doesn't break down fundraising and operational costs."

Although it is true that not all organizations that complete the form are required to classify expenses functionally, all 501(c)(3) and (4) organizations (for example, charitable, religious, educational, scientific and social welfare organizations and civic leagues) are required to do so. In fact, not only are these entities obligated to reflect the breakdown between programmatic and supporting services but, within the supporting services category, administrative costs and fundraising expenses must be shown separately.

* Prospective donors should be aware of new tax regulations that require public charities to make available the three most recent 990 forms, as well as the exemption applications, to all in-person requests by the end of the same business day. (In addition, faxed, e-mailed and mailed requests must be honored within 30 days of receipt.)

Another valuable resource for researching a charity is the Philanthropic Advisory Service of the Council of Better Business Bureaus, Inc. It can be contacted at 703-276-0100, or on its Web site at www.bbb.org.

Scott J. Goldberg, CPA New York Metro Health Care and Not-For-Profit Services Group BDO Seidman, LLP New York City

Another Tax-Saving Vehicle

I appreciated the article highlighting the tax impact of investment returns ("A Taxing Problem," JofA, May00, page 51).

My clients have also benefited from the tax efficiency of unit investment trusts (UITs). Typically targeted toward specific themes, such as worldwide wireless or Glass-Steagall companies, they have a buy-and-hold strategy to maximize tax efficiency. At the end of the holding period investors can roll their shares or take in-kind exchanges allowing them to further defer their taxable gain.

UITs have other benefits as well:

* Known portfolio.

* Diversification. Portfolios can be diversified across many securities, offering one for almost every asset allocation need.

* Low expenses.

* Daily liquidity. Units may be redeemed on any business day at the redemption price.

* Professional portfolio selection and supervision.

* Full investment in the market. UITs have limited cash positions.

* Ease of ownership. With one low minimum purchase investors can own a diversified portfolio of securities without making a substantial commitment of time or capital.

To summarize, UITs are a tax-saving vehicle for investing in a particular segment of the market without having to commit too much capital.

Gary M. Sullivan, CPA/PFS, CFP Burlington, Massachusetts

JofA Not Just for Accountants Anymore

I recently spent a couple of hours in an after-hours medical clinic, waiting to see a doctor. There, I found a copy of the JofA.

Even though I'm not in the accounting field, I really enjoyed the magazine. In particular, I recall reading a useful article describing how to generate reports in Excel by linking to an Access database ("Spreadsheet, Meet Database; Database, Meet Spreadsheet," JofA, Dec.99, page 33). This task is something I would find useful in my job, as would many of my co-workers. I've been trying to convince them that we need to convert our data, which currently resides in a huge Excel spreadsheet, into an Access database, and generate our reports from there.

Since I haven't used Access in quite some time, I found the article particularly helpful, and I plan to share it with my colleagues.

Lucie Delheimer System/USOS Requirements Team Requirements Baseline International Space Station Houston

Letters to the Editor

The opinions and views expressed are those of the letter writers and do not necessarily reflect those of the AICPA.

The JofA encourages readers to write letters on important professional issues in addition to comments on published articles. Because space is limited, letters submitted for publication should be no longer than 500 words. Please include telephone and fax numbers.