CAF America Connections Blog

Latest from the IRS: Proposed Rule for Gift Substantiation Withdrawn

January 13, 2016

rp_iStock_000020410226_web-300x279.jpgAs of January 2016, the IRS proposal on gift substantiation has been withdrawn. The proposed regulation would’ve resulted in nonprofits collecting, storing and reporting donors’ Social Security numbers.

The Substantiation Requirement for Certain Contributions, a voluntary reporting regime proposed by the IRS, has been one of the most recent victims of public outcry. In line with the proposed rule outlining a new reporting regulation to substantiate charitable gifts, the nonprofits would have collected the donor’s name, address and Social Security number or other taxpayer identification number to substantiate contributions over $250 in value.

The suggested regulation prompted 38,000 public comments by December 16th, 2015 and received a massive backlash from the charitable sector. The latter expressed concerns related to the potential harmful effect the regulation could have had on charitable giving by increasing the risk of personal information theft, exposing charities to hackers and donors to scams, thus discouraging donors from giving.

Featured Posts

Featured Story

BeneFITting from the Power of Sport

When France won the world cup for the second time in 2018 (the first time was in 1998), the nation was caught in jubilant celebrations from Lille to Nice. In such moments, the power of sport is indisputable and for all to see. In this case, bringing together the entire country united under an innate… CONTINUE READING >>

Read more

Join our email list »

Stay up to date on global charitable giving news & trends, read stories of philanthropy, and learn how the philanthropic landscape is changing.