IRS and Nonprofit Transparency

The IRS is in the process of revising the 990, the form that all nonprofits use to report their financial and programmatic operations. Yes the 990 just focused on the financial operations of charitable organizations, but last year the form asked for more information than before. It wanted to know the goals of the organization for the year completed and asked for the goals for the coming year. Now, it is undergoing further revisions. Comments on it were due by September 14. To see the proposed changes go to: www.irs.gov/charities/article/0,,id=171216,00.html. The object is to create greater transparency about nonprofit organizations' operations. It may increase the amount of paper work, but the burden should not be overwhelming for small organizations. Everyone should check out the full roster of proposed regulations that have been under discussion by the Senate Select Committee on Finance. A synopsis of these proposed regulations appears on pages 37-39 in Cardinal Principles of Governance: Strengthening The Governance of Nonprofit Organizations in America's Communities. How many readers have ever read a 990 report. I suggest you look-up your favorite charitable organization at www.guidestar.org. You will have to register before using it, but once you do you will be able to access to nonprofit organizations' 990s.