On January 8, 2016, the Internal Revenue Service and the Treasury Department withdrew a controversial proposal to alter Internal Revenue Code section 170(f)(8) that would have allowed charitable nonprofits to collect and report personal information, including Social Security numbers, from donors who contribute $250 or more. Tim Delaney, president and CEO of the National Council of Nonprofits, had rallied against the effort, arguing the rule could have a chilling effect on donors.
Nearly 38,000 Americans agreed and submitted their comments. "The Treasury Department and the IRS received a substantial number of public comments in response to the notice of proposed rulemaking," the IRS said in its statement. "Many of these public comments questioned the need for donee reporting, and many comments expressed significant concerns about donee organizations collecting and maintaining taxpayer identification numbers for purposes of the specific-use information return."
"This is a prime example of the power of nonprofit advocacy and what can be achieved when charitable nonprofits speak up to protect the public, our missions, and the communities we serve," said Delaney.