Tuesday, December 21, 2010

Just in time for the holidays

The IRS has announced that they are going to be scrutinizing nonprofits even more in the coming year. Good idea, but poor timing, to say the least.

That said, better oversight is important, and I fully support it, within the context of the new 990, and focusing on both educating nonprofits in how to best report and then going after people who abuse the system.

I read earlier some blogs that decried this "new attack on charities" but really, with so many nonprofits and so much abuse, we need some help in policing the sector. The IRS audits went up 30% from 2008-2009 and another 12% in 2010.

This article from the Chronicle of Philanthropy does a good job of laying out what's coming and what you should be paying attention to. Payroll taxes and loans to executives and trustees (which always falls into the category of what were you thinking?) are high on the list.

Check out the article and be prepared.

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