It’s been a long time coming.  The IRS is giving charities’ annual tax form, Form 990, a makeover—its first in 20 years.  

Starting next year, the new forms, which charities must make available to donors and other interested parties, includes a summary page that will spell out comparative financial information—both revenues and expenses—over a two-year timeframe, gives a synopsis of the charity’s mission and accomplishments, as well as outline the organization’s governance and operations, compensation for top executies and trustees, an details fundraising efforts.  While some of this information was included in previous versions of the form, the new format puts all of this information up front.  Donors who have questions where their money is going will have a better sense as to where their money is going with the pertinent information available to them right on the Form 990.

Another new item to the form is that if a charity reports more thank $15K in gross income from fundraising or spends more than that amount soliciting donations, the organization will have to answer a slew of questions and disclosures about its activities, including methods and compensation for fundraisers.

The IRS' goal seems to be an attempt to raise the stakes of accountability.  For that, we think change is good.