The Trump Administration is back on track with limiting tax-exempt organizations’ disclosure of major donor information, through Form 990’s Schedule B. On September 6, 2019, the U.S. Treasury Department issued a notice in response to the recent judicial invalidation of IRS Revenue Procedure 2018-38, thereby commencing a “notice and comment” period for reinstating such requirements through new government regulations. Once that time period ends, the new donor disclosure restrictions will take effect.
On August 9, 2019, Illinois Governor J.B. Pritzker signed into law a bill amending the State's School Code, including the provisions related to the Textbook Block Grant Program, which governs State Board of Education-funded grants to public school districts and "State-recognized, non-public schools" for the purchase of selected textbooks. This amendment contains significant implications for parents, school administrators, and others operating within private and public school contexts, both in terms of the required instructional content and broader policy implications of government grant programs. Indeed, it raises the question of what risks come with accepting government grants and other government involvement in school education - now or later.
A Montana federal district court judge recently set aside the IRS’s Revenue Procedure 2018-38, which had eliminated IRS Form 990 Schedule B disclosure requirements for Section 501(c)(4) and other tax-exempt entities but left intact such requirements for Section 501(c)(3) organizations.