07 January 2016

(UPDATE) IRS Withdraws Proposed Regulation Threatening Donor Privacy

Last month, we told you about an IRS proposed regulation that would permit, but not require, charities to file a new information return with the IRS (in addition to Form 990) by February 28 every year to substantiate contributions of more than $250 in value. The new return would have required the charity to collect the donor’s name, address, and Social Security number or other taxpayer identification number. The Philanthropy Roundtable saw this as an attack on donor privacy and joined with its colleagues in the charitable sector in filing comments in opposition to this proposal.

The response from the charitable sector clearly had an impact. After receiving thousands of comments, the IRS officially withdrew the proposed regulation today. We thank all of those who responded to this dangerous proposal and contributed to the protection of philanthropic freedom and donor privacy.