“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,” writes Tim Devaney in the 12/27 issue of The Hill (Washington, D.C.). “They warn the proposed rules could have a ‘chilling effect’ on donations and depress funding for programs.… While the new rules proposed in September would be strictly voluntary, charitable groups fear encouraging the collection of Social Security numbers would make them a target for hackers. Currently, nonprofits send donors a written acknowledgement verifying contributions of $250 or more, which they can use when filing their tax returns. But the IRS is proposing changes that would encourage these charitable organizations to collect the Social Security numbers of their donors and provide the information directly to the agency.… The IRS in a statement stressed that collecting Social Security numbers would be an ‘optional, alternative way of substantiating donations.’ … The proposal has nonetheless drawn a backlash from the nonprofit community and many of their donors.… Nonprofits say they will be forced to invest in expensive cyber security defenses to ward off hackers, but any breaches would open them up to lawsuits.” Read the League’s comments to the IRS on behalf of orchestras here.
Posted January 5, 2016
