Posts tagged ‘Mark Fitzgibbons’

December 11, 2015

Warning: The IRS Wants You to Do Something Dangerous

The US Internal Revenue Service wants you to do something foolish.

The IRS has proposed that charities acquire, record, and report the Social Security numbers of all donors who give $250 or more in any given calendar year. The IRS justifies the proposal by stating that “the collection of information is necessary to properly substantiate charitable contribution deductions under the exception to the general requirements for substantiating charitable contribution deductions of $250 or more.”

IRS logoHowever, the proposed regulation is particularly stupid because it is completely unnecessary while being dangerous — to nonprofits and their donors — and costly to implement properly.

You can read the proposed regulation by clicking here. In addition, the website will allow you to share your comments with the IRS by December 16, 2015.

If adopted, compliance with the regulation would be voluntary, for now. Nevertheless, there are several reasons you should be very wary, including:

Voluntary Compliance Could be Made a Requirement.

If the IRS truly believes the measure is necessary, why wouldn’t it seek to change voluntary compliance to a requirement? The collection of Social Security numbers from donors is either essential or not. The IRS can’t have it both ways. Therefore, there is a strong possibility that the IRS is cynically hoping to gain acceptance for the proposal in stages, first seeking voluntary compliance before making it a requirement.

“Any proposed regulations that would create this has the potential for being a slippery slope,” David Heinen, spokesman for the North Carolina Center for Nonprofits, told Fox News.

The IRS Lacks the Capacity to Safeguard Data.

“Number one, the IRS has not demonstrated its capacity to hold this type of information from confidentiality and a security point of view,” US Rep. Peter Roskam (R-IL), a member of the House Ways and Means Committee, told Fox News.

Mark Fitzgibbons, President of Corporate Affairs at American Target Advertising, echoed Roskam’s concerns when he told Fox News, “The IRS can’t keep its information confidential, they’ve been hacked.” ATA offers direct-response fundraising services.

There are two major security problems with providing the IRS with donor Social Security numbers: 1) The very real risk that the data would not be safe in the hands of the IRS, and 2) the public’s perception that the data would be at risk at the IRS.

Most Charities Lack the Ability to Safeguard Data.

The data security concern also applies to charities themselves. Few nonprofit organizations are capable of truly protecting donor data. Giving hackers and nefarious insiders easy access to donor Social Security numbers and other information puts donors at significant risk of identity theft. To mitigate that risk would cost charities an enormous amount of money.

“Charities are not well equipped to deal with this,” Roskam said. “We’ve had for-profit companies — some of the biggest companies in the world — that have spent millions and millions and millions of dollars trying to protect their confidential data. And it’s been hacked, and it’s been breached.”

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August 17, 2015

Urgent Alert: Immediate Action Needed to Defend Nonprofits

There is an alarming issue you need to be aware of.

While I do not use this blogsite to engage in partisan politics, that does not mean that I avoid politics and government relations altogether. I consider myself a bi-partisan, vigorous defender of the nonprofit sector.

CA State House by David Grant via Flickr

California State House

Over the years, I’ve worked with both Democrats and Republicans in my capacity as Chairman of the Association of Fundraising Professionals Political Action Committee, Chairman of the AFP Greater Philadelphia Chapter Government Relations Committee, and a member of the AFP US Government Relations Committee. I’ve even represented AFP in testimony before the Federal Trade Commission.

As a passionate defender to the nonprofit sector and a cheerleader for voluntary philanthropy, I took notice of a recent post on The Agitator blog. Fundraising legend Roger Craver sounded an alert and issued a call to action over a dangerous move by the California Attorney General.

Never before have I reprinted a blog post. However, this issue is so important that, with Roger’s permission, I am sharing his post with you now:

 

If you’re willing to turn over the list of your top donors to the government then you need read no further.

However, if you’re not sure, or you’re absolutely certain you’d be unwilling to give up the donor list, then take this post to your CEO and General Counsel. Immediately.

Why? Because right now the Attorney General of California is set on requiring that any nonprofit seeking a license to solicit funds in the nation’s largest state first turn over their lists of top donors that are filed with the IRS on a supposedly “confidential” schedule of your tax return.

This dangerous and unconstitutional power grab in the name of ‘fundraising regulation’ and ‘consumer protection’ must be stopped.

And it’s up to all of us—nonprofits and the companies that serve them to stand up now and take action.

Whether or not your organization or one you serve solicits funds in California the battle ahead will affect the freedom of speech and privacy rights of every nonprofit in the U.S. and their donors.

In a moment I’ll outline the steps you can take immediately to head off this threat. But first some background.

A year ago this week The Agitator warned about a sinister move by the Oklahoma Attorney General and his special interest contributors to silence the Humane Society of United States (HSUS) using that state’s fundraising regulations.

HSUS has boldly and, so far, successfully fought back.

As I pointed out last August there have been relatively few occasions in modern history where politicians have blatantly sought to use the power of their office to silence nonprofits that opposed them or whose views and ideology they disagreed with.

At the end of the day, Americans and the U.S. Supreme Court have shown little tolerance for political zealots and bullies who abuse U.S. Constitution’s guarantees of free speech and due process.

NOW …The Intimidators At It Again. And We Must Make Sure They Lose. Again.

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