Charity Regulator Slams IRS Proposal on Donor Data

Charity Regulator Slams IRS Proposal on Donor Data

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Ms. Kleinfelter made her remarks in an interview at a conference Tuesday on nonprofit data transparency hosted by the Urban Institute in Washington. She predicted that donors to legitimate charities would be scared off if asked for their Social Security numbers. To protect sensitive donor information, nonprofits would have to spend money on data protection that could otherwise go toward their charitable mission.

"As a regulator, I would look at that as a breach of fiduciary duty," she said.

Small nonprofits don’t have the resources to effectively protect donor data, said Tim Delaney, president of the National Council of Nonprofits. He has urged his group’s members to share their feelings about the proposal with the IRS during a comment period that ends December 16.

Large government agencies are routinely hacked, he said.

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The Chronicle of Philanthropy
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