Non-Profit disclosure...new law

["Linus D. Toy" <linust@interramp.com>]

OK, down to 955 messages...

this just in, from the Corporate Legal Times, October 1996 (someone thinks I
practice corporate law...now why would i want to do that?)

"THIS IS WHAT the tax-exempt sector gets for ticking-off Congress.  It is
now the law of the land that if any person walks into the office of your
tax-exempt organization and asks for a copy of your Form 990 (the annual
information return), you have to hand it over 'immediately.'  Apparently,
there will be no ifs, ands or buts.  If you don't do it, you get fined
$1,000.  If you make a point of not doing it, you get fined $5,000."

This is the lead paragraph from an article entitled "Congress Cracks Down:
Tax-Exempts Can't Hide Form 990s," by Bruce Collins.  Collins refers to the
Taxpayer Bill of Rights 2, Public Law 104-168, signed into law by Clinton on
July 30.  This law was the result of complaints about tax-exempt's behaviour
in disclosing their Form 990s.  hmmm...sounds like something we've heard
before.  The big complaint was the compensation paid to the highest-paid
executives.  

I'd rather not reproduce the whole article (afterall, it is a legal
newspaper with a copyright and it was written by a lawyer--i'm asking first
on this one :)  but the gist of the article says the non-profit can't make
you work for the form, the form must be readily available for inspection by
*any individual* at the "principal office" or any other office with three or
more employees.  This means an in-person request--phone request need not be
honored; written requests must be honored within 30 days.  A reasonble fee
for copying and mailing is allowed.  Collins points out that this law is an
example of Congress micro-managing an issue because of blatant disregard for
the previously (and still) existing law on disclosure.  neat stuff. 

cheers.
Linus
-------------------------------------------------------------------------------
* linus toy                                              linust@interramp.com *
* mercer island, wa  USA                                                      *
-------------------------------------------------------------------------------