AFI BLOG: Media and Technology

The Wall Street Journal

Revised Tax Form Will Make Nonprofits Reveal More About How They Spend

Americans searching for the best places to make charitable donations are about to get more help from the federal government.

The Internal Revenue Service, the tax agency that serves as the main regulator of nonprofits, is ramping up efforts to increase charities’ transparency as donors clamor for better tools to evaluate how their money is spent.

The first tangible signs of reform are happening now, as charities’ annual tax form — known as Form 990 — gets a makeover for the first time in nearly 20 years. The changes promise to provide potential donors with a standardized, one-stop shop for information on charities amid a sea of varied nonprofit watchdog Web sites. Charities begin using the new form next year, when they report their 2008 information.

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