The IRS takes nonprofits at their word
Subscriber content preview. or Sign In
The most powerful asset a charity has isn’t always heart or vision. Sometimes it’s tax deductibility. And as of July 1, any group with a little cash and a computer will have a much easier time getting it.
A year after the IRS was first accused of targeting right-wing nonprofits for heightened scrutiny, the agency has decided it’s not worth vetting approximately 80% of the groups seeking tax-exempt charitable status each year. Now, instead of a 26-page application and supporting documents, organizations raising less than $50,000 a year need fill out only a three-page online registration and submit a $400 fee to be allowed to collect tax-deductible donations.