IRS Aims To Improve Nonprofit Transparency

 

Last week, the Internal Revenue Service highlighted its efforts to improve nonprofit transparency for donors. Particularly wary of scams during the holiday giving season, IRS officials want to help individuals curious about whether an organization soliciting donations from them is a verified charity.

"Unfortunately, charity scammers look for opportunities to take advantage of situations, such as natural disasters, when exempt organizations are making an effort to help," remarked Robert Malone, who heads the IRS Exempt Organizations division. "Donors and charitable organizations alike should remain vigilant to protect their assets from fraudsters."

"I urge donors to verify a charity's tax-exempt status at Tax Exempt Organization Search before donating goods, services, or money," he added.

In a separate release, the IRS detailed the ability of its Tax Exempt Organization Search portal to help inquirers readily access charity determination letters issued since January 2014, as well as Forms 990 and more filed since 2017. The agency also noted methods to request older or additional information, including a recently revised Form 4506-B for determination letters. The IRS hopes this new form, which can now only be submitted online, will improve the timely and consistent processing of such requests.

These IRS efforts underscore the desire of potential donors to ensure only trustworthy organizations receive their support. This is a demand ECFA is uniquely suited to meet for many givers as it works with its members to help them live up to biblical standards of integrity and financial accountability. ECFA.org allows givers to look transparently at member church and ministry financials and program overviews.

If you are a donor looking for a ministry to support this holiday season, please visit ECFA.org to find an organization that will amplify the impact of your donation in your community and around the world. And if you're a ministry or church who wants to be backed by the ECFA seal, explore how you can become a member. Let us help you maintain a trusted reputation, so you can focus on reaching the world for Christ.

 

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.