IRS Dumps Schedule B For Associations, Others NPOs

IRS Dumps Schedule B For Associations, Others NPOs

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“The great concern is the combination of an effort to prevent the IRS to make it harder to find who’s funding whom. The (c)(4) political work made dark money darker,” said David Thompson, vice president of public policy at the National Council of Nonprofits. “It just made it a lot easier now for people to be heavily political in the nonprofit space” among social welfare organizations, labor unions and business leagues and associations.

“You can’t divorce this from the effort to weaken the Johnson Amendment,” he said, referring to the measure that bars 501(c)(3) charities from endorsing political candidates and electioneering.

“This new ruling is fuzzying more what 501(c)(4)s can and can’t do,” Thompson said. “It’s harder for the IRS to track down bad actors. To the extent it taints anything with the word nonprofit, we’re concerned,” he said, emphasizing that the new policy doesn’t change the rules for charitable nonprofits.

“If this means the IRS has to spend less time putting Schedule Bs in filing cabinets and gives them more time to enforce the law in support of charitable nonprofits, great. If it reduces the cost for the IRS to spend more money on important work, good,” said Thompson. Charities need regulatory guidance and needs the IRS to focus on weeding out bad actors in the sector, he added.

Source Name: 
The NonProfit Times
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