IRS Considers New Reporting Proposal

The IRS is seeking comments on a new proposed gift substantiation regulation which would provide for voluntary nonprofit collection and reporting of donor social security numbers. The proposal would permit, but not require, charities to file a new information return by February 28 of every year, in addition to filing 990-series forms.

Charities choosing to participate would file an additional form with the IRS that includes taxpayer identification numbers or social security numbers for donors who contribute $250 or more. Charities also would be required to provide each donor a copy of their individual information that was included on the form.

The Minnesota Council of Nonprofits opposes such a measure as it is likely to cause hesitation among some donors, and nonprofits should not be burdened with keeping and protecting this important personal information of their donors.

Minnesota’s nonprofits can learn more and sign on to a joint letter led by Independent Sector and the National Council of Nonprofits here.

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