New Tax-Exempt Rules Stress Nonprofits
Higher scrutiny on nonprofits, both on the Hill and through reporting requirements to the IRS, have advocates warning of a chilling effect on legitimate nonprofits serving everyday communities, Erin Slowey reports.
The stepped-up examination of tax-exempt organizations has been a focus of House Ways and Means Committee Chair Jason Smith (R-Mo.), who launched an investigation into tax-exempt organizations over their funding sources and use of fiscal sponsorship—arrangements where an established nonprofit funds charitable projects of other organizations.
Smith says the probe aims to determine how some groups may have “helped to sow chaos and violence ...