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Federal law requires
most tax-exempt nonprofit organizations to allow public
inspection of their recent federal annual information returns
(e.g. IRS Form 990 and Form 990 Schedule A) and their
application for tax-exempt status (e.g. IRS Form 1023 or 1024),
along with nearly all associated material. Furthermore, the
public access requirements have been significantly expanded,
requiring that copies of these be provided upon request unless
the organization makes these documents widely available. "Widely
available" currently means publication of these documents on the
World Wide Web in an acceptable format. The new rules are a
critical change in the accountability of public charities and
other tax-exempt organizations to the U.S. tax-payers, who are
ultimately supposed to benefit from the preferential tax
treatment given to exempt organizations. Tax-exempt
organizations are required to make easily available to the
public many details of their finances and operations that may
not be included in their regular annual reports.
These documents serve as valuable resources for members of
the public who wish to examine a nonprofit organization's
financial and operational activities, by demanding a relatively
consistent structure to the presentation of certain critical
information, and by instituting a legal requirement for accurate
financial data that is publicly available. A fairly clear
picture of an organization's finances and operations should be
rendered by its IRS returns and application for exempt status
together with an annual report and the financial statements
usually accompanying it.
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To demonstrate our organization's commitment to
fiscal accountability.
2.
To illustrate our organization's fiscal responsibility to our donors
and the community.
3.
To establish an atmosphere where honesty and openness is treasured.
4.
To capitalize on the most accessible means of communicating with our
community
5.
To comply with IRS regulations for access to our records.
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