In response to negative feedback from taxpayers and charitable organizations, the IRS withdrew its proposal late last week recommending that donors provide their social security number for tax reporting purposes whenever they make donations greater than $250. The American Red Cross and YMCA were among the biggest opponents of the proposal arguing that collecting and storing that type of private data could make their board members targets for lawsuits, increase their risk for cyber attacks and hinder charitable giving. The National Council of Nonprofits commented, “If the current system works and only a few are interested, when the costs, burdens, and harm to the public so great, then we see no legitimate reason for the IRS to proceed.”

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Image Source: David Boeke