Mandated Scheduled B of Form 990 No Longer Required for Certain Nonprofits

Synopsis: Many nonprofit organizations, except 501(c)(3) registered charities, will no longer have to file a Schedule B Form, disclosing their major donors, to the Internal Revenue Service (IRS). However, these organizations, which include associations, labor unions, membership organizations and social clubs, should continue to maintain this information and will be required to make such information available to the IRS upon request when needed for tax administration. The change will be effective for tax years ending on or after December 31, 2018.

For More Information: IRS Dumps Schedule B for Associations, Other NPOs (The NonProfit Times)

Why It Matters: There is concern that this move will make it easier for “dark money”—that is, money given to nonprofits by individuals who can’t be identified and to be used for political purposes—to expand even more deeply into the nonprofit sector.

What to Do: This change will affect many members who may work for nonprofits connected to a 501(c)(3) charitable organization. Alert your chapter members to this change. AFP is concerned about the lack of oversight and accountability that this change will increase.