Nonprofits Under Greater IRS Scrutiny Now

Posted by Fundraising Pro on June 10, 2009

The Internal Revenue Service is working to help “protect the trust and confidence” in nonprofit organizations during the current economic crisis and will be watching for possible abuses, said Lois G. Lerner, who oversees the IRS office that monitors charities and foundations.

“During hard times, there is often a rise in questionable or fraudulent activity, in overly aggressive or inappropriate fundraising, and in tax-avoidance accommodation schemes of less than sterling character,” Lerner told a conference of tax-exempt organizations in Washington held by Georgetown University’s Law Center, according to media reports.

“We are trying to stay ahead of the curve to curtail predatory abuse of tax-exempt organizations,” she said. “Consequently, we are looking very closely at applications from new organizations, and at activity being conducted by established organizations.

Lerner emphasized how important it is for the nonprofit sector to maintain the trust of the general public. “The IRS can help instill and maintain this trust by promoting compliance and transparency. Organizations can build and maintain this trust by doing the right thing – operating consistently with their long-held beliefs and missions, promoting transparency and accountability to the public, and resisting the temptation to sacrifice principles for short-lived and perhaps ill-gotten gains.”

It sounds like she was talking about Christian fundraising groups. Christian fundraising groups are committed to their long-held beliefs. These beliefs guide them to resist temptation and never sacrifice principles.

Christian fundraising groups that sell the Samaritan Card will find that the success of this easy fundraiser will further help them meet their obligations to their mission, their boards, the Lord – and the IRS.