Sunset Provision Suggested for Non-Profits

ThePhilanthropy Journal draws attention to the interesting suggestion made by TomBelford on his blog, The Agitator, that the IRS introduce a sunset provision onthe designation of “charitable status.” Recent news reports that urgedMassachusetts’ 36,000 nonprofits to consider merging and highlighted theinefficiency and potential harm the myriad of “unregulated” aid groupsoperating in the health field can create, led Belford to the conclusion thatthe nonprofits should meetsome sort of performance measure or close their doors. 

Belford’ssuggestion for a sunset provision of some kind on the IRS charitable status is meant to support a “perform or die” methodology,in which the non-profits “ … figure out a way . . . to establish that[their] nonprofit actually is performing… performing in the sense of achievingsubstantial goals, not just processing stuff.”

Thoughhe admits his approach may be found crude by some readers, his theory that Massachusettsor Africa would not be worse off if half as many non-profits were expending thesame level of resources in each region, has merit.

 SS