Bravo to the IRS, they’ve recently revised the 25-year old 990, the form required by organizations wishing to file under nonprofit status. And they’ve made some strides in the last quarter century, quite adequately taking into account the most important issues affecting and influencing nonprofits today – efficiency, effectiveness and transparency. 

According to this article in the Chronicle, the agency is going to be much more aggressive in its efforts to monitor nonprofit efficiency and effectiveness.  By creating standards to hold organizations against, the IRS hopes to help ensure nonprofits spend according to the money they have coming in and the mission they support. Considering the purpose of the tax exempt subsidy, these standards are probably a good idea.  Not that they should be telling an organization how to run, but the IRS can show a little support to the country’s nonprofits to help keep them running responsibly.

And apparently the House Oversight and Government Reform Committee is also jumping on the effectiveness bandwagon – showing interest in nonprofit revenue reports and encouraging organizations to reveal to donors how money spent supports their mission. Isn’t it great that after all this talk among our own nonprofit community that we finally have some big politicos lending an ear?

With good intentions, the IRS hopes this new and improved form will help organizations be more transparent and accountable to donors.  Not that all organizations needed the water wings, but hopefully those that do (the ineffective and unaccountable) will appreciate this effort by the government. After all, accountable, efficient, effective organizations - as we always preach - are going to be the nonprofits best supported and those that make the biggest impact.  IRS, thanks for the lifesaver.

IRS, 990, nonprofit, effectiveness, accountability, efficiency, Chronicle of Philanthropy, House Oversight and Government Reform Committee