Writer Asks IRS to Push for Disclosure of More EO Forms

Jason T. Schwartz of New York has asked IRS Commissioner Charles O. Rossotti to support an effort to require private foundations to disclose their Form 990-PFs to the public. Currently, Schwartz says, private foundations must disclose their Form 990s, but not their Form 990-PFs. While some Form 990-PFs are available at Foundation Center libraries, he says, the collections are incomplete, outdated, and difficult to access.

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May 11, 1998

Commissioner Charles Rossotti

Dear Commissioner Rossotti:

[1] I am writing to ask that you support the effort to amend the Internal Revenue Code so that private foundations are required to disclose their IRS Form 990-PFs to the public. As you know, public charities currently must disclose their IRS Form 990s upon request.

[2] The 1996 Taxpayer Bill of Rights II requires that all section 501(c)(3) tax-exempt nonprofit groups give or mail copies of their three most recent IRS Form 990s to anyone who requests them, without cost excepting a reasonable fee for copying and mailing. If a charity makes their Forms 990 "widely available" (for example, over the internet) they are no longer required to give or mail copies.

[3] Private foundations, which must file an IRS Form 990-PF, were unfortunately not included under the 1996 disclosure rules. Although some Form 990-PFs are available at Foundation Center libraries, the collections are incomplete, outdated and difficult to access.

[4] I have served as professional program staff of a private foundation, am currently staff of a public charity and will be enrolled in the fall as a graduate student at Columbia University to study public and nonprofit management and accountability. I am also a member of the internet discussion group on "Nonprofit Cyber- accountability."

[5] The accountability of voluntary organizations has been, since the early days of our nation, a central concern to lawmakers and the public alike. Full disclosure of IRS 990s and 990-PFs is a vital method of increasing voluntary sector accountability as well as donor responsibility.

[6] Thank you for your attention.

Sincerely,

Jason T. Schwartz