US Treasury Announces Form 990 Transparency Initiative to Expose Hidden Funding and Strengthen Oversight
Be still my beating heart… the days of hiding fraud, abuse, and extremist activity behind complicated nonprofit arrangements will be coming to an end
By Katy Grimes, May 6, 2026 6:00 am
For two decades I’ve been on a crusade to expose fraudulent non-profit organizations, to no avail.
Even when Jerry Brown was California Attorney General 2007 – 2011, I reported several dubious non-profits, but never saw any investigations.
After Jerry Brown, California Attorneys General Kamala Harris (2011–2017), Xavier Becerra (appointed 2017, elected 2018-2021) and Rob Bonta (appointed 2021 – current), failed to investigate fishy non-profit organizations.
Be still my beating heart… The U.S. Department of the Treasury recently announced that the IRS will revise the Form 990 to improve transparency, strengthen tax administration, and provide clearer reporting on certain activities of tax-exempt organizations described in section 501(c)(3) of the Internal Revenue Code, including government contracts, government grants, and fiscal sponsorship arrangements.
The Form 990 is one of the Globe’s favorite documents. We have exposed some really questionable government funding going to really questionable non-profit groups through their Form 990 IRS filings.
The. Form 990 is the annual information return that most U.S. tax-exempt nonprofit organizations must file with the Internal Revenue Service.
Most 501(c)(3) charities, 501(c)(4) social welfare organizations, 501(c)(5) labor unions, 501(c)(6) trade associations, and other tax-exempt entities must file the Form 990, excluding churches.
According to the Treasury Department:
The changes are intended to detect misconduct and hold wrongdoers accountable.
Government grants and contracts can involve substantial public funds. Clearer reporting in these areas can help the IRS and the public better understand the sources and uses of that funding, support proper revenue classification, and reduce the risk of fraud, abuse, and misuse of taxpayer dollars.
“Public money and tax-exempt status demand public accountability,” said Treasury Secretary Scott Bessent. “We are ending the days of hiding fraud, abuse, and extremist activity behind complicated nonprofit arrangements. When bad actors misuse charitable structures, directors and officers should understand that transparency can lead to scrutiny, accountability, and liability under the law.”
“Tax-exempt status is not immunity from scrutiny,” said Treasury Assistant Secretary and Acting IRS Chief Counsel Ken Kies. “If an organization receives public funds or tax-deductible donations, it should be prepared to show who controls the money and where it goes.”
The Treasury department explains how tax-exempt organizations qualify for tax-exempt status:
Fiscal sponsorship is an umbrella term for several longstanding and lawful structures through which a tax-exempt organization may support charitable projects and initiatives. Recent congressional oversight has raised concerns that some fiscal sponsorship arrangements may be used to obscure who is operating a project, who controls project funds, and how those funds are being used. Increased reporting can help address those concerns and make it harder for rogue organizations to hide behind opaque arrangements.
Treasury and the IRS expect to publish proposed regulations and provide an opportunity for public comment before any reporting changes are finalized. Treasury and the IRS will consider administrative feasibility, proportionality, and reporting burden as the proposal is developed.
The Globe is rather excited that the days of “hiding fraud, abuse, and extremist activity behind complicated nonprofit arrangements” will be coming to an end. And we are hoping that non-profit directors and officers are finally held liable under the law when they have violated the law.
A California native and Navy mom, Katy lives in Sacramento, CA.
- New California Bill Would Let Deported Professors Keep Teaching under ‘Catastrophic Leave?’ - May 6, 2026
- Racial Redistricting: How the Supreme Court Ruling Could Affect California’s Prop 50 - May 6, 2026
- US Treasury Announces Form 990 Transparency Initiative to Expose Hidden Funding and Strengthen Oversight - May 6, 2026
RELATED ARTICLES
-
-
October 17, 2018 - October 22, 2024
AKA digital currency and as the US currency is being relegated to a state of worthlessness, inflationary pressures are sure to mount exponentially. Total control over the minions is mandatory: This is the forerunner of social scoring as already implemented in China.
All sovereign assets you thought you may own vanquished and we’re now wards of the state.
It’s about time! These non profit organizations have been funding radical organizations that have become increasingly successful in causing problems in all California areas. And many politicians and their families have been also profiting personally from these nonprofits. Hopefully many of these reporters will be made public so the taxpayers can see what their money is being spent on. And I hope that all of these politicians and organizations will be held accountable for illegal activities and use of public funds.,
The over 1.5 million tax-exempt nonprofit organizations (NPOs) established in the mid 20th century in the U.S. and eastern Europe have often become subversive, fraudulent and criminal actors. Wielding some $6 trillion dollars in assets, NPOs have prospered in the “charitable charade” of scams in government problems like immigration, healthcare, environmental and homelessness. They also play and pay in politics that is prohibited in IRS Code Section 501(c). Stop them!
Anything that can overhaul and with any luck rid us of the many phony and actually harmful “non-profits” that have been plaguing us for decades is a wonderful thing. The list of modern “not-for-profit” organizations are, more often than not, money-sucking scams and places to hide fraudulent activity that in fact ARE connected to our corrupt CA govt entities and, once scrutinized, will likely often be found to be criminal operations. Money-laundering political operations and slush-funds for politicians are among what will be found under the bright light shone on them. Time to see consequences for this grand theft on steroids that has a “nice” and totally misleading name. Non-profits my eye.