Introduction to Nonprofit Donor Disclosure
Nonprofits in the United States are required to disclose certain information about their donors to the Internal Revenue Service (IRS) and the public. The IRS requires nonprofits to file an annual information return, known as Form 990, which includes a schedule (Schedule B) that lists the organization's major donors.
While Schedule B is not publicly available, the IRS does make some donor information publicly accessible. Nonprofits are also required to provide copies of their Form 990 and Schedule B to anyone who requests them in person or by mail.
Understanding IRS Form 990 and Schedule B
IRS Form 990 is an annual information return that most nonprofits are required to file with the IRS. The form provides information about the organization's financial activities, governance, and compliance with tax laws. Schedule B is a supplemental schedule that lists the organization's major donors, including their names, addresses, and contribution amounts.
Nonprofits are required to list donors who have contributed $5,000 or more during the tax year. However, the IRS does not make Schedule B publicly available, and nonprofits are not required to disclose the names and addresses of their donors to the public.
Publicly Available Donor Information
While nonprofits are not required to disclose the names and addresses of their donors to the public, some donor information is publicly available. The IRS makes the Form 990 and certain other documents filed by nonprofits publicly available through its website or by request.
Additionally, some nonprofits voluntarily disclose their donor information on their websites or in annual reports. Donor information may also be available through third-party websites that track nonprofit data and provide information about charitable giving.
State Laws and Donor Disclosure
Some states have laws that require nonprofits to disclose donor information to the state or to the public. For example, California requires nonprofits to file a copy of their Form 990 and Schedule B with the state's Attorney General's office, which makes the information publicly available.
Other states have laws that prohibit nonprofits from disclosing donor information without the donor's consent. It is essential for nonprofits to understand the laws in their state regarding donor disclosure and to comply with all applicable requirements.
Best Practices for Nonprofits and Donors
Nonprofits should have policies in place for handling donor information and ensuring compliance with all applicable laws and regulations. Donors should also be aware of their rights and the laws surrounding donor disclosure.
Nonprofits can provide transparency and build trust with their donors and the public by voluntarily disclosing donor information and providing clear information about their financial activities and governance practices.
Frequently Asked Questions
What is the purpose of IRS Form 990 and Schedule B?
The purpose of Form 990 and Schedule B is to provide information about a nonprofit's financial activities, governance, and compliance with tax laws, including a list of major donors.
Is donor information publicly available?
Some donor information is publicly available, such as through the IRS website or third-party websites, but nonprofits are not required to disclose the names and addresses of their donors to the public.
Can nonprofits disclose donor information without consent?
It depends on the state laws and the nonprofit's policies. Some states require nonprofits to disclose donor information, while others prohibit disclosure without consent.
How can I find out who donated to a specific nonprofit?
You can try contacting the nonprofit directly, checking their website or annual reports, or searching online through third-party websites that track nonprofit data.
Are all nonprofits required to file Form 990 and Schedule B?
Most nonprofits are required to file Form 990 and Schedule B, but some exceptions apply, such as churches and small nonprofits with annual gross receipts of $25,000 or less.
Can donors remain anonymous?
Yes, donors can remain anonymous by requesting that the nonprofit not disclose their name or address. Nonprofits are required to respect donor anonymity and comply with applicable laws and regulations.