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Proposed IRS Form 990 Revisions Could Hurt Goodwill Industries

New public disclosure forms create an unnecessary burden on charities that sell donated clothing and household goods

October 3, 2007

Rockville, MD--Goodwill Industries International is urging the Internal Revenue Service to reconsider proposed revisions to its Form 990, a key public disclosure document used by charitable organizations.  While Goodwill supports the IRS decision to redesign its Form 990 – which after nearly 30 years of piecemeal updates is confusing and repetitive – the organization believes that Schedule M of the new form would necessitate extensive capital expenditures and substantial ongoing personnel costs, while diverting resources from Goodwill’s charitable mission.  

“We need a better, more effective Form 990, but collecting the information necessary for compliance shouldn’t cost so much that it jeopardizes our ability to help people,” says George W. Kessinger, President and CEO of Goodwill Industries International.  “Every dollar spent meeting pointless reporting requirements is a dollar we don’t have to spend on programs that help people find jobs and become
financially independent, tax-paying members of their communities.”

More than 60 percent of Goodwill’s operating revenue is earned through the sale of donated goods; proceeds help finance job training programs and other support services that benefit hundreds of thousands of people each year.  Under Schedule M of the redesigned Form 990, Goodwill organizations in the United States would be forced to adhere to numerous burdensome, costly reporting requirements, such as categorizing donations based on 22 or more different types of property and recording the quantity of items received during the year.  

“Like the IRS, Goodwill is concerned that some donors may have tried to overvalue donations for tax purposes,” says Kessinger.  “Recent tightening of the tax laws has already addressed this problem.”  Goodwill Industries is urging the Internal Revenue Service to appropriately weigh the heavy burdens and likely small benefits of any new reporting requirements in a redesigned Form 990.

Read GII comments to the proposed Form 990.