Nonprofits assail IRS for charitable-giving rules
Nonprofit organizations and charities are sounding the alarm about a new regulatory proposal from the IRS that would encourage them to collect the Social Security numbers of their donors.
They warn the proposed rules could have a “chilling effect” on donations and depress funding for programs that help the nation’s most vulnerable people.
“That means a child will go without a meal, or a family will go without shelter, or a senior citizen will go without life-saving medical care,” said Tim Delaney, president and CEO of the National Council of Nonprofits.
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The rules could create problems even for nonprofits that decline to participate. Scammers could call unwitting donors, pretending to represent a charitable organization, and demand their Social Security numbers.
This would “slander” the good name of nonprofits, said Pearl Wright, interim director of the Utah Nonprofits Association.