Publication
Final Treasury Regulations Reduce Donor Reporting Requirements for Some Tax-Exempt Organizations
By Soheila Shahidi
The Department of the Treasury has adopted Final Regulations1, providing guidance on information to be reported on the annual return of tax-exempt organizations with respect to their “substantial contributors." For these purposes, a tax-exempt organization’s substantial contributor is any donor who, in a taxable year, contributes to the organization an aggregate of $5,000 or more (in cash or property).
Tax-exempt organizations (other than those described in Code § 501(c)(3) or Code § 527) are no longer required to report, on their annual return, the names and addresses of their substantial contributors. However, such tax-exempt organizations must continue to: (i) report, on their annual return, the amount of contributions from their substantial contributors; and (ii) maintain, in their books and records, the names and addresses of their substantial contributors – information which may have to be provided to the IRS upon request.
Tax-exempt organizations described under Code § 501(c)(3) or Code § 527 must continue to report, on their annual returns, the names and addresses of their substantial contributors.
Footnotes
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Treas. Reg. § 1.6033-2(a)(2) (the “Final Regulations”), effective as of May 28, 2020, which generally adopted the 2019 proposed regulations.
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