Threats And Bluster: The IRS’ Black Cloud over the Nonprofit Sector

Given the role the U.S. Department of the Treasury’s Internal Revenue Service (IRS) plays in regulating nonprofits and threats from the administration, it is fair to wonder what policies and programs nonprofit leaders might consider rethinking because they could run counter to the federal policies and agenda.

"The sector is facing a very complicated moment because of the coexistence of ongoing processes that create significant uncertainty," said Eric Gorovitz, a principal at Adler and Colvin, a nonprofit-focused law firm based in San Francisco, California.

The Trump administration has muddied the waters for nonprofits through litigation, threats and pronouncements based on the administration’s perceptions of what they allege or suspect is illegal activities by nonprofits, according to Gorovitz. Adding to the stress is that IRS has been plagued by significant staffing cuts, resource reductions and questions about its security across the sector.

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