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From: Philanthropy Today
Subject: In Maryland, Congressman and Wife Give $10 Million to Mental Health and Hillel
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The IRS office that regulates tax-exempt groups, long since defanged, is losing even more of its power, even as the number of nonprofits explodes. Politicians have attacked the Exempt Organizations office for decades, notably in the 1990s, when President Bill Clinton cut its powers and staff, and in 2012, when Republicans accused it of putting conservative nonprofits under extra scrutiny. As a result, an office that had a staff of about 120 lawyers and accountants in the 1990s now exercises vanishingly little oversight of hundreds of small nonprofits and cannot fund probes into potentially illegal political activity by tax-exempt groups. Meanwhile, some recent high-profile scandals and at least one independent assessment have revealed major nonprofit fraud or irregularities that the office did not catch, even as a Trump-era law is about to further rein in regulators and break up the office entirely. “For all intents and purposes, the IRS is getting out of the tax-exempt services business,” said Marcus Owens, a former director of the office. (New Republic, subscription)
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