• Senate: More disclosure for charities needed

  Filed under Form 990, nonprofits, tax law
  May 31

  A Senate committee wrote the Treasury Department a letter asking the IRS to include additional disclsoures in the Form 990 annual tax return. Specifically:

  • Executive pay and perks
  • Expanded questions on governance
  • Expanded questions on endowments
  • Related organizations and joint ventures (to determine if there are private benefits)
  • The amount of money spent on fundraising

  The next Form 990 may be more time-consuming to complete if all of these measures are adopted, but they certainly would give the public a better understanding of the internal workings of any given charity. The devil’s in the details, however… if the IRS agrees and adds these sections in a new 990, but gives poor guidance on how one fills out the section, there could be problems. More to come on this, to be sure…

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