On May 28, the Treasury and the IRS released final regulations (T.D. 9898) updating information reporting regulations under section 6033 that are generally applicable to organizations exempt from tax under section 501(a). Notably, the regulations state that only section 501(c)(3) charitable and 527 political organizations need to continue to list the names and addresses of significant contributors on Schedule B “Schedule of Contributors,” to Form 990, 990-EZ, or 990-PF. Therefore, organizations exempt from tax under any other section of 501(c) will no longer need to report the names and addresses of significant contributors. This new exception is extended to organizations described in sections 501(c)(7), (8), and (10) that were previously required to provide the names of certain contributors that contributed greater than $1,000 for a specific charitable purpose.
The regulations do not alter the existing requirement for tax-exempt organizations to report annually the amounts of contributions from each substantial contributor on Schedule B of Form 990, 990-EZ, or 990-PF. Exempt organizations must continue to maintain a record of the names and addresses of significant contributors, should the IRS need to request this information. These regulations do not affect public disclosure rules, thus section 501(c)(3) organizations should continue to redact the names and addresses of significant contributors on the public inspection copies.
The effective date of these regulations is May 28, 2020; however, organizations may apply the regulations to returns filed after September 6, 2019.
General Donor Disclosure Requirements for Exempt Organizations
All tax-exempt organizations should maintain a record of all contributions received. This record should include the amount and type of donation, as well as the name and contact information of the contributor. If a non-cash contribution is received, the organization should be prepared to provide support on the estimated value of the property received, which may need to be specifically reported. Generally, organizations filing Schedule B of Form 990, 990-EZ, or 990-PF must report contributions from all persons, organizations, or governments that contribute $5,000 or more in money or other property during the tax year. The information that may need to be reported on Schedule B includes the name and address of the contributor, as well as the amount and type of contribution received. Special reporting rules may apply to certain organizations.