The IRS has issued final regulations that require private foundations to make certain information available to the public. These regulations require that the foundation's application for recognition of exemption to the IRS (Form 1023) and its annual information returns (Form 990-PF, and Form 4720, if applicable) for the past three years be available for public inspection, and that the foundation provide copies of these documents in response to written and in-person requests. The regulations include an exception to the copy requirement for foundations that make their information available on the worldwide web. They also contain relief for those organizations that believe they are the subject of an organized harassment campaign. The regulations furthermore require a private foundation to disclose the names and addresses of its contributors.
The penalties for failure to comply can be substantial. A penalty of up to $5,000 can be imposed for each willful failure to make an application or a return available. An additional $20 a day penalty can be imposed thereafter for each day that the disclosure requirements are not satisfied.
Similar requirements were imposed on public charities in 1999.
If you have a private foundation, and you would like more detailed information on these regulations, please contact our office.
