Nonprofits Could Soon Be Exempt from Donor Disclosure

The House on Tuesday passed a bill that would bar the Internal Revenue Service from forcing tax-exempt nonprofit organizations to disclose the identities of their contributors to the IRS.

Source: House Passes Bill to Exempt Nonprofits From IRS Disclosure Rules – Morning Consult

Introduced in April by Rep. Peter Roskam of Illinois, the bill amends Internal Revenue Code of 1986 to waive the requirement of donor information (e.g. name, address) in annual returns.

“There is no reason we should require charities to expend valuable resources to compile and send any more information than the IRS needs to do its job. We’re not changing the law, just eliminating the requirement to file an extra form the IRS doesn’t need anyway.”1
-Rep. Peter Roskam

Opponents of the bill fear it will reduce transparency of foundations and donors as well as limit the IRS’ ability to enforce tax laws. The bill is en route to the Senate where it will most likely face increased opposition.2

1The Nonprofit Times
2Morning Consult

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