Author Archives: Lauren Iobst

IRS Weighing New Options for Documenting Donations

W2There may be a new rule change for the verification of donations.  According to Bloomsberg BNA, in September the Internal Revenue Service proposed a rule change for the reporting of donations of $250 or more. With the old rule many taxpayers were able to make donations and then claim them on the Form 990 without having to have a “traditional contribution receipt.”  The new rule change is planning to stop taxpayers from being able to claim donations without a “traditional contribution receipt” and make sure they have a “contemporaneous written acknowledgement” of any donations over $250.  If this new rule does occur the Internal Revenue Service would create a new form that details “information on gifts… or a ‘donee report.’”  The purpose of this new form is to help simplify and have more organized audits. For more information please visit https://philanthropy.com/article/IRS-Weighing-New-Option-for/234151.

How Charities Can Gain the Public’s Trust

work in progress signOne in three Americans lack faith in nonprofit organizations.  One of the leading nonprofit educators at Indian University, Beth Gazley, focused on two areas that Americas can improve to help trust nonprofit organizations.  One major way to help Americans be more confident in charities is to help them “understand the complexity and diversity” of the organizations.  Ms. Gazley discussed the large variety of nonprofits in America and how the public is unaware of all the organizations that are nonprofit.  One technique Gazley used for her students to help them understand the complexity of the nonprofit organizations is to walk outside and have the students see the organizations outside that are nonprofit.  Gazley believes that this helps students not only see the organizations but then become aware of the diversity of the nonprofit organizations around them.   According to Gazley, she does not want to put a halo around the nonprofit spectrum but rather “support and advocate for something that people believe in.”

The second topic Gazley mentions is how the Internal Revenue Service needs to have stronger regulations for nonprofit organizations to be tax exempt.  Gazley believes that the regulations should be done at the state level so that it could then help the federal level.  According to Gazley the state levels have done a good job with having fund raising compliance and even in California they tried to pass a law to have more diversity on the board.  Gazley’s main point is that if there was more awareness of nonprofit organizations and stronger regulations it would help strengthen the sector overall.  For more information visit https://philanthropy.com/resources/audio/how-charities-can-gain-the-pub/5769

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