A Change in Paperwork for Nonprofits
Ready for more transparency, nonprofits?
The Internal Revenue Service, which serves as the main regulator of nonprofits, is giving its Form 990 — the annual tax form filed by charities — a makeover for the first time in nearly 20 years. The changes promise to provide potential donors with a standardized, one-stop shop for information on charities amid a sea of nonprofit watchdog Web sites. Charities begin using the new form next year, when they report their 2008 information.
The form, which nonprofits must continue to make available to donors on request, will now include a top summary page listing comparative financial information — revenues and expenses — over a two-year period. The next page requires charities to detail their organization’s accomplishments during the past year, moving that information closer to the front of the form than before. Other sections ask charities to provide more detailed information about fundraising, governance and compensation for top executives and trustees.
The changes are well in line with current trends, of course. Critics have been railing about nonprofit business practices, and donors say they want more information. Well, they’re about to get it.
Perhaps the worst aspect of this news is that it was even necessary in the first place. The best nonprofits treat their donors with the respect they deserve, and that includes open, transparent information-sharing. It’s a shame it took the IRS — the IRS — to drive the point home. | 501(c)
Related Stories
POSTED IN: Fundraising, Government
0 opinions for A Change in Paperwork for Nonprofits
No one has left a comment yet. You know what this means, right? You could be first!
Have an opinion? Leave a comment: