For Non-Profits: More Scrutiny, Regulation

Various pieces of legislation currently floating around on Capitol Hill would increase the level of scrutiny currently directed at tax-exempt organizations. Some of these proposals include mandatory annual audits, mandatory review of tax-exempt status every five years, and more assertive enforcement and penalties for Form 990 problems.

Fun, eh?

And there's much more. Many of the proposals will increase the paperwork burden on non-profits and steeply increase direct and indirect compliance costs.

Frankly, all this was my greatest concern about President Bush's faith-based initiatives. For non-profits, the quid pro quo for greater access to federal funds is exposure to calls for greater oversight and scrutiny.

It's time to keep an eye on Congress (and have a good accountant).