Tax-exempt organizations, including private foundations and other types of nonprofits associated with high-net worth individuals, have been subject to increasing investigative scrutiny in recent years. Last Congress, for example, the House Judiciary Committee and several other committees issued document requests to multiple nonprofit organizations, and in this Congress the trend is likely to continue. The current administration issued executive orders that may impact the operations of nonprofit organizations, as outlined below. This environment brings significant uncertainty, and tax-exempt organizations should consider undertaking risk assessments and preparing now.
In this alert, we outline potential steps for tax-exempt organizations to take.