| Public Disclosure Requirements for Exempt Organizations |
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Tax-exempt organizations other than private foundations are now required to provide copies of certain tax documents to anyone who requests them. If the request is made in person, the organization is usually obligated to provide a copy immediately, and if the request is written, the exempt organization has 30 days to comply. These requirements are in addition to the exempt organization's obligation to make their tax documents available for public inspection.
An organization has the right to charge a reasonable copying fee, which is defined as the amount charged by the Internal Revenue Service for providing copies, and any postage. The organization must give the requesting individual timely notice of the approximate fee and acceptable forms of payment. Generally, this requirement applies to tax-exempt organizations such as public charities, schools, labor organizations, business leagues, fraternities, social clubs, veterans' organizations, and voluntary employees' beneficiary associations. However, it does not apply to private foundations, certain split-interest trusts, or organizations such as farmers' cooperatives, homeowners' associations, or qualified tuition programs. The documents that an individual is entitled to request are the exempt organization's exemption application, which includes any supporting documents and any letter or document issued by the Internal Revenue Services concerning the application, and its three most recently filed annual information returns. A tax-exempt organization does not have to comply with individual requests for copies if it already makes the documents widely available, such as by posting the documents on a readily accessible web site. The format must exactly reproduce the original documents, and an Internet user must be able to download, view, and print the documents without charge. Even if the documents are widely available, the exempt organization is still required to make the documents available for public inspection. A tax-exempt organization is not required to disclose the names or addresses of its contributors. However, that exclusion from disclosure does not apply to certain political organizations described in Section 527 of the Internal Revenue Code. These organizations may be required to provide the name, address, occupation, date, amount of contribution, and employer of any individual who contributes more than $200. A private foundation is required to make its exemption application, supporting documents, and letters from the IRS available for public inspection during regular business hours at its principal office. If the organization has more than one regularly maintained regional or district office, this information must be made available for public inspection at each office. Copyright 2009 LexisNexis, a division of Reed Elsevier Inc. |