Dark Money Darker? IRS Shutters Collection of Donor Data

The IRS recently rescinded a longstanding rule that required certain nonprofits to disclose substantial donor names and addresses on the nonprofit annual information return. This was mistake. Though remains for charities political organizations, collection of this non-publicly by is needed enforce tax-exempt requirements tax law generally social welfare organizations business leagues. It serves both as roadmap audits hindrance improper transactions. also reasonable collect support legal regimes ancillary such state campaign finance. Tax prohibits distribution earnings from those who control organization. Like officers directors, donors are classic suspects might seek private benefits through their nonprofit. But donors, unlike not public facing. Without information, an auditor has no reason begin question transactions operations accrue benefit could potentially lead modification claimed result. Supreme Court found similar requirement California impose burden First Amendment free association rights, furthermore failed show narrowly tailored governmental interest protecting citizens fraud charity. Court’s ruling calls into constitutionality too. However, accepted associated with be different case made attorney general. Article does significantly engage but suggest important involved. There democratic interests involved beyond rights namely tax, finance enforced equally upon all appear equally. importance ability government revenue significant well.