Two related items on administrative efforts to improve disclosure by nonprofits. One involves proposed regulations and planned revisions to Form 990; the other, litigation over the First Amendment viability of statutory requirements to disclose donors. Links and excerpts, below the fold.
Press Release, Treasury Announces Form 990 Transparency Initiative to Expose Hidden Funding and Strengthen Oversight (Apr. 23, 2026):
[T]he Internal Revenue Service (IRS) plans to revise the Form 990 to improve transparency, strengthen tax administration, and provide clearer reporting on certain activities of tax-exempt organizations . . . , including government contracts, government grants, and fiscal sponsorship arrangements. The changes are intended to detect misconduct and hold wrongdoers accountable.
Kelly Phillips Erb, Treasury Moves to Require More Reporting and Paperwork from Tax-Exempts, Forbes (Apr. 28, 2026):
What exactly will change is not yet clear. Treasury was skimpy on specifics—this is still in the early stage. The IRS says it will issue proposed regulations and solicit public comments before finalizing any changes.
James Matheson, IRS Donor Disclosure Dispute Will Test Scope of Court Deference, Bloomberg Law (Apr. 28, 2026):
A First Amendment challenge to an IRS regulation requiring nonprofits to disclose major donors will allow the Sixth Circuit to determine what level of deference to use in reviewing information disclosures required by the tax code. . . .
If the US Court of Appeals for the Sixth Circuit says the disclosure rule violates the constitution, it will open the door to challenges to other compelled disclosures because the whole Form 990 includes numerous variations of required reporting, [said Roger Colinvaux (Catholic U.)].
Related TaxProf Blog coverage:
- Associational Rights Versus Nonprofit Transparency: Information Reporting in the Internet Age (June 1, 2025)
- Democracy Dies in . . . Charitable Donations? Unpacking the Supreme Court’s Decision in Americans for Prosperity v. Bonta (Aug. 22, 2023)
- Adediran: Disclosures For Equity (Aug. 27, 2021)
- Eleven Tax Profs File Amicus Briefs in Supreme Court Supporting Disclosure of Donors to Nonprofits (Mar. 26, 2021)
