May 2, 2010
The IRS is expected to audit 50 community foundations this year, an official of the Council on Foundations told grant makers at the association’s annual conference last week. The IRS announced in 2008 that it would examine community foundations identified through questionnaires sent to numerous organizations. The Council on Foundations has said that the IRS is reviewing such matters as executive compensation, investment policies and practices, and donor- advised funds. The audits focus on 2007 tax filings, but the IRS agents are also asking questions about practices since.
