Donor Information Disclosure Requirements

Tax-exempt organizations that receive contributions as part of their revenue are required to include Form 990 Schedule B, Schedule of Contributors, listing the contributors who donated more than a specific threshold.

Schedule B indicates their names, addresses and amounts contributed as part of their annual filing requirement with the Form 990. Unlike the Form 990 and the other additional required schedules that are attached to the Form 990, Schedule B is not subject to public inspection and is only provided to the Internal Revenue Service (the “IRS”).

While the federal filing requirements are clear for Schedule B, the states’ instructions still vary or are unclear. As such, up until recently, the state of California required tax-exempt organizations to submit a full copy of their Form 990, including Schedule B as part of their state annual report. In July of 2021, the U.S. Supreme Court ruled that these reporting requirements violate the right to free association protected by the First Amendment to the U.S. Constitution. 

In October of 2021, the New Jersey Division of Consumer Affairs (the “Division”) proposed amendments to its rules to no longer require the submission of Schedule B as part of the charitable registrations with the state. In light of the U.S. Supreme Court’s decision in the case with the state of California, the Division has determined that the requirement for charitable organizations to file Schedule B can no longer be enforced.

The Division is collecting comments in regards to this amendment until December 17, 2021.

Other states, such as New York and Florida, have a requirement to submit a full Schedule B to the state, but it is likely to change in the near future due to the U.S. Supreme Court’s ruling.

 

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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