by KYW's Salil Gutt
There are about 1.2 million charities in the United States. Most of us want to be sure our charitable dollars are put to good use and in an efficient manner. Now our friends at the IRS have stepped in to ensure just that.
Starting next year all charities must use the new and improved Form 990. This is the annual tax form for charities but now more detailed information is going to be provided. The most controversial element has been watered down by lobbying. This is the spending ratio, which is the percentage of money the charity spends on programs. While not spelled out precisely the new disclosures will make these numbers easy to calculate from the tax form.
Also perks and fringe benefits such as supplemental retirement programs, first class travel, housing allowances and other reimbursements for highly compensated executives of non profits will have to be disclosed.
Despite all of these financial disclosures there is no substitute to doing your own homework. Websites such as guidestar.org and charitynavigator.org help you dig deeper.
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