Update On Nonprofit Donor Disclosure Requirements

I. What's Changed

Earlier this week, in Bullock v. Internal Revenue Service, a U.S. District Court—at least temporarily--reinstated the donor disclosure requirement that the IRS eliminated for many 501(c) organizations last year. As of July 2018, the IRS no longer required many organizations, including 501(c)(4) social welfare organizations, to disclose donor names and addresses on Schedule B of their Form 990 for tax years ending on or after December 31, 2018. We first discussed this IRS rule change here. The court invalidated the change because it found that the IRS had failed to follow the public notice and comment process required by the Administrative Procedure Act ("APA").