Form 990 already requires nonprofits to disclose a substantial amount of information. Even so, the return does not always make it easy to follow a particular dollar from its source to its ultimate use.

That appears to be the concern behind a federal initiative announced in April 2026. According to the U.S. Treasury’s announcement, the IRS plans to revise Form 990 reporting for certain activities of organizations described under Section 501(c)(3). Particular attention is paid to government grants, government contracts, and fiscal sponsorship arrangements.

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