IRS’ Radar (2010 Initiative)

According to Nanette Downing, the IRS has announced that “another major initiative during the remainder of fiscal year 2010 will be examining charitable organizations’ sources and uses of funds.” On the source side, the IRS is interested in high levels of fundraising income and high levels of unrelated business income. For the use or expendiures side, focus will continue on private inurement and private benefit issues. 

Is your organization vulnerable for this scrutiny? Remember the key terms for establishing tax-exemption…organized and operated. Form 990 is the tool for reporting information annually to the IRS, substantiating the organization’s exempt purpose. Sources and uses…this will be interesting as the IRS moves forward in looking for additional revenue streams.

Is your organization vulnerable to this type of inquiry?  Call me. We can perform assessments to determine the organization’s risk.

For more information on this initiative, see this blog post by Land Trust Alliance.