Is the 1023-EZ a Step Backward for Regulators and Nonprofits?

Is the 1023-EZ a Step Backward for Regulators and Nonprofits?

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Tim Delaney, President and CEO of the National Council of Nonprofits, objects to the Form 1023-EZ in its present form. There are concerns that the streamlined form omits most of the exhibits that the IRS uses to perform its due diligence to confirm that an applicant organization truly qualifies for tax exemption. Some see this abbreviated form as an invitation to abuse of charitable status, with the IRS lacking the documentation to evaluate the facts. Delaney also notes concern from states: “The National Association of State Charity Officials [NASCO] has sternly warned the IRS that ‘the Form 1023-EZ will increase opportunity for fraud and heighten the burden on state regulators.’” 

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Nonprofit Quarterly
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