Dramatic IRS Shift for Nonprofits
Complex new forms focus less on finances, more on how groups operate and prevent corruption.
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"In the past, if an employee of a nonprofit was caught stealing, they often were fired, but not prosecuted," he said. "That meant they might go on and do it again someplace else. Now, you have to explain how you handled the situation."
The IRS does not require that policies it asks about be in place. The practical result of the questions, however, is that nonprofits will feel pressure to adopt them.
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Christopher K. Hepp
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