Current CWA processes are noted for their “effectiveness” and “minimal burden” in the amendment’s proposal, leading Tim Delaney, president and CEO of the National Council of Nonprofits, to opine that the IRS is trying to fix what isn’t broken. “We’re all dumbfounded that such a proposal could see the light of day,” he said.

Delaney said that his concerns with the proposed amendment start with the safety of the general public and are followed by the repercussions nonprofits may face. Nonprofits coming into the practice of collecting donors’ Social Security numbers could pave the way for scam artists, who could use the amendment as a means of soliciting individuals’ personal information. “As soon as this thing hits the books, it’s dangerous,” he said. “Even if not one nonprofit does it, it creates danger. Suddenly, the scam artists can use it. That, then, creates the identity-theft opportunity. As soon as that happens and news gets out, it will have a further chilling effect on nonprofits. People will say ‘I don’t want to go anywhere near that.’”

Nonprofits, in addition to potentially seeing donations dip, would need to increase data security and insurance expenditures to accommodate the handling of additional sensitive information. The associated liabilities could hamper the recruitment of board members, according to Delaney. A new tax form, too, could lead to more hassle and cost for organizations, he added.