IRS Gift Substantiation Regulation Withdrawn!

01 December 2015 Published in News & Updates

Congratulations to Nonprofits Everywhere!

The Treasury Department and IRS announced in early January that it is withdrawing the proposed Gift Substantiation regulation that we all worked so hard to defeat! (see December's Action Alert below) Over 37,000 comments were submitted from across the country. Thanks go out to the National Council of Nonprofits who led the charge and who link Utah's nonprofits to a fabulous nationwide network of nonprofits! Read The National Council of Nonprofits statement on the withdrawal here.

Action Alert from December 2015

Can you even imagine asking your donors for their social security numbers?

The IRS is suggesting just that.

We are asking Utah's nonprofits to join this national effort to raise our nonprofit voice and tell the IRS, resoundingly, why this is a bad idea. Click here to find talking points and to submit your own comments to the IRS.

pdfDownload to view UNA's submitted comments here.

The Internal Revenue Service advises taxpayers on its website and on a YouTube video to only give out their Social Security numbers (SSN) when "absolutely necessary." Yet the IRS is proposing a rule that would encourage nonprofits to ask donors to give out their SSNs and report them along with the amount of donations to the IRS. It is not hard to imagine that scam artists, posing as nonprofits, will soon be calling people asking for their private Social Security numbers.

The proposed regulations would give nonprofits the option of filing a separate new information return with the IRS and individual donors by February 28 every year to substantiate contributions of more than $250 in value. A similar mandatory proposal was considered and rejected in the past based on numerous legal, policy, and confidentiality problems it raised.

Learn more about the proposed regulations, read an analysis by the National Council of Nonprofits, and find out how you can take action.

Thank you for joining UNA, The National Council of Nonprofits and nonprofits across the country to take action on behalf of your donors, your nonprofit and the public.