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Poor disclosure penalizes efficient charities

Pulled from comments. This is a terrific point. By pulling punches on disclosure requirements, the IRS hurts charities that work hard to keep expense ratios low. Better disclosure would make these nonprofits look good on Form 990, which many donors use to direct giving. Without the relevant ratios front and center on the IRS forms, the groups' light is hidden under a bushel.

People need to understand these ratios and know where there money is going. I sit on a board of a national non-profit out of Rockville and know what sacrifices the staff, including the Exective Director, take to keep the admin and fundraising costs low. They have a clear understanding of the fact that if those costs are low, there is more going to the programs which is why anybody should be working for a charitable cause.

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About the blogger
Jay Hancock is a business columnist for The Baltimore Sun. Read his columns here.
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