Monday, March 14, 2011

Donor Privacy

Bemoaning donor privacy during the process of acquiring nonprofit status, as this article from the Washington Post does, does not mention the American tradition of protecting donor privacy as part of the overall right to privacy Americans come to expect in much of their daily life, and that omission somewhat negates their argument.

An excerpt.

“American Crossroads GPS, an advocacy group that reported spending about $17 million on advertising before the midterm elections, generated controversy by using its nonprofit status to shield donors' identities.

“As it turns out, the Internal Revenue Service hasn't even approved the group's nonprofit status. Crossroads filed an application in September but the agency has not acted on it.

“That's not a problem as far as the law is concerned - the tax code allows an organization to operate as a nonprofit before it receives such status. Many groups do not file the paperwork until it is time to send in their first tax return.

“The issue is more than a matter of paperwork, however. Watchdog groups say that Crossroads and other groups active in campaigns are taking advantage of lax IRS enforcement to offer political donors anonymity.”