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Nonprofit news from around the web: October 10 – 14, 2022

Written on Oct 10, 2022

IRS not doing enough to vet bogus charities 

The IRS’ streamlined application process for tax-exempt status could be allowing corrupt charities to claim exemptions before the IRS has enough information to check on them and enable them to carry out illegal activities, according to a pair of new reports. 

Unlocking the potential of open 990 data 

As the movement to expand public use of nonprofit data collected by the IRS advances, it’s a good time to review how far the social sector has come and how much work remains to reach the full potential of this treasure trove. 

Nonprofits may need to spend a third of their budget on overhead to thrive — contradicting a donor rule of thumb 

Nonprofits that spend more on IT, facilities, equipment, training, program development and fundraising tend to be more successful than those that skimp on these expenses. But many donors are reluctant to support groups that spend heavily on those priorities because they associate high overhead costs with waste and poor management. 

Wealthy use loophole to reap tax breaks — and delay giving away money 

The surge of assets into donor advised funds has long sparked concern, but one loophole has attracted far less attention. Private foundations are using them to sidestep federal laws designed to make sure the wealthy donate money to the needy in a timely fashion, not delay the gifts for generations.