3: Form 990
Improve form 990 and make the data from it available electronically Other Information:
Timely public access to the Form 990 is crucial to understanding the size and scope of the nonprofit sector, its role in our
economy and trends in private and public sector giving. Public availability of these forms also leads to greater compliance
with the law, improved form accuracy and better accountability, as donors, prospective donors, and regulators all make use
of this information. In short, the efficient, timely, and accurate submission of Forms 990 is of paramount importance to non-profit
organizations, the public, researchers, and policymakers at all levels. Several years ago, the IRS began requiring electronic
filing, or e-filing, of Forms 990 and 990-PF for certain classes of tax-exempt organizations; it also made e-filing an option
for all filers. Though increasing numbers of nonprofits are taking advantage of electronic filing (which should improve access
to the form) in fact, public access to the Form 990 is often delayed by several years. In addition, even when the IRS does
release 990s, only images of the forms are provided. This means that the nonprofit organizations and state charity offices
making these forms and data available to the general public must spend millions of dollars re-digitizing the information received
from the IRS, delaying public access to this information even further and increasing the potential for errors and omissions.
The Nonprofit Data Project is also working to make improvements to the Form itself. For example, the new Form 990 obscures
government funding to the nonprofit sector by, among other things, failing to separately and clearly report on Medicare and
Medicaid vouchers. Because these vouchers account for such a large portion of nonprofit income, the government revenue data
that often emerges from the 990s is not correct. The Nonprofit Data Project recently submitted comments to the IRS seeking
to address this and other issues, and is reaching out to many within the sector to explore ways to create a more timely, efficient
and accurate Form 990 system.
Objective(s):
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