CLIENT ALERT: IRS Proposing Regulations That Could Require Nonprofits to Collect Social Security Numbers

Delaware nonprofit organizations should be aware and concerned that the IRS is proposing regulations that would create a new donor disclosure form for donations over $250, which would require charities to collect their donors’ social security numbers.  A copy of the proposal can be found here. According to a recent alert published by the national chapter of the Association of Fundraising Professionals (AFP), the IRS proposal is sufficient to raise concern in the nonprofit and fundraising industry. AFP is asking nonprofits (and businesses that work with nonprofits, such as Innovincent) to express their concerns with the IRS during this comment period. 

You can cut and paste your comments to the IRS comment link here until December 16, 2015:!submitComment;D=IRS-2015-0049-0001

You can cut and paste your comments to the IRS comment link here until December 16, 2015:!submitComment;D=IRS-2015-0049-0001

AFP believes that the quantity of responses against this proposal is the most important to convey a strong message against it. AFP offers several examples to use in your comments when considering what is relevant to your organization, cause and particular perspective. The key is to provide your organization, its size and what it does, and why you think this proposal would impact your bottom line or fundraising process in general. AFP also provides a sample template you can copy and paste and edit as needed:

Example 1:


I am concerned about giving out my Social Security number. I am also the director of a nonprofit. I am concerned that by asking for Social Security numbers, people will be less likely to give larger donations. This would have a great impact on my organization.”

Example 2:

"I work for a small, [INSERT NUMBER OF EMPLOYEES]-employee nonprofit that has a big impact in [INSERT COMMUNITY, STATE].

I oppose the proposed gift substantiation regulation because it would open donors and nonprofits up to identity theft. The IRS should join nonprofits in protecting donor information by withdrawing this unnecessary and ill-conceived proposal."

Submitting comments is easy and you can cut and paste your text into the provided form here. No salutation or other formal information is required. More than 17,000 comments have already been received about this proposal. If you have a concern, you may exercise your due process rights to express them through this form:!submitComment;D=IRS-2015-0049-0001

The deadline to submit a comment is WEDNESDAY, DEC. 16, 2015. 



This article should not be construed as legal or tax advice or legal or tax opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer or tax advisor on any specific legal or tax questions you may have concerning your situation.

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Any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or for the purpose of promoting, marketing, or recommending any transaction or matter addressed herein.