Critics of a recent IRS proposed rule requiring non-profit organizations to report the Social Security numbers of donors giving over $250 say the regulation could have detrimental effects on charities.
According to Maryland Citizen Action Network, the regulation will put a financial burden on non-profits and put donors at risk of identity theft.
The group also expressed concern it will make it easier for the IRS to target organizations and individuals based on their politics.
“This sets up these organizations for a huge burdensome task of having to store social security numbers, your social security numbers, putting not only those organization at risk for a financial burden for storing them properly but your information is susceptible to identity theft,” Tonya Tiffany, the conservative group’s president, says in a video released Friday.
Maryland Citizen Action Network is not the only non-profit to speak out against the proposed rule.
After millions of government employees and contractors’ information was exposed after a major information breach at the Office of Personnel Management, many are concerned the regulation will lead to their information being exposed.
President and CEO of the National Council of Nonprofits Tim Delaney says he believes it will lead to a reduction in donations.
“Nonprofits will be hurt because people will be reluctant to make a donation if it means they have to share their private Social Security number, plus it will divert limited resources away from missions to invest instead in costly new data security,” Delaney tells Newsmax.
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