Free Report: New IRS Regulations for Grantmakers and Donors
August 18, 2011 (PrimeNewswire) GuideStar-- the leading source of nonprofit information--has released a new report, "New Rules for Grantmakers and Donors: An Overview for Private Foundations, Organizations Sponsoring Donor-Advised Funds, and Donors," detailing the Internal Revenue Service (IRS) updates to rules under which grantmakers and donors can make grants and charitable contributions.
The report, which can be downloaded for free, reviews the necessary steps that must be taken as well as the importance of documenting due diligence, and what can happen if people or organizations donate to nonprofits without doing research, if grantor and contributors use the wrong sources for their due diligence, and if they don't correctly document their research process.
"The IRS's regulatory updates affect a broad spectrum of the nonprofit community, including 501(c)(3) private foundations, organizations sponsoring donor-advised funds, community foundations, corporate giving programs, federated giving programs, philanthropic donors and donors advisors," said Bob Ottenhoff, president and CEO of GuideStar. "GuideStar knows that these rules can sometimes be difficult to interpret, so we've created this report as a handy reference for all those with a vested interest in complying."
Among the questions answered in "New Rules for Grantmakers and Donors: An Overview for Private Foundations, Organizations Sponsoring Donor-Advised Funds, and Donors" are:
"Prevention really is the best medicine when it comes to IRS compliance," added Ottenhoff. "Failing to do your homework can end up costing a person or an organization money -- or, in the case of nonprofits on the OFAC list, even a place on the wrong side of the courtroom. I encourage everyone in the nonprofit community to download our report today."
Prepared by GuideStar staff and available for free download, the report also:
"For some time now GuideStar has been advising both grantmaking organizations and individual philanthropic donors to mitigate their risk through proper research," stated Ottenhoff. "Our due diligence tool GuideStar Charity Check provides the necessary eligibility information for any and all of these IRS procedural rules in one easy-to-read report. If someone wants to save time and protect his or her organization--or him- or herself--from IRS penalties, I encourage him or her to check it out."
For more information or to download the free report, please visit http://www2.guidestar.org/rxg/news/publications/new-rules-for-grantmakers-and-donors.aspx.