In December, we reported on the “dangerous” proposition, explaining this rule would require the charity to collect donors’ names, addresses and Social Security numbers. Not only would it be an exceptionally difficult task for many organizations to collect and protect that information, but it could lead to a huge decline in donations if donors are uncomfortable sharing such sensitive information and would put donors at greater risk of identity theft. While the proposed new rule would be voluntary, many feared it would lead to mandatory measures.

Criticism of the proposal boomed. The National Council of Nonprofits spoke out against the rule; 38,000 comments were submitted to the IRS by the comment deadline of Dec. 16; a group of 215 charities, including the American Red Cross, United Way, Habitat for Humanity and ALS Association, filed a joint comment letter in opposition; and the Senate introduced a bill in December in attempts to block the rule.