May 2026 

On April 23, 2026, as part of the Trump administration’s continuing scrutiny of nonprofit organization programs and finances, the Treasury Department announced plans to revise IRS Form 990, with a focus on new reporting requirements related to government contracts, government grants, and fiscal sponsorship arrangements.   

As a publicly available document, the IRS Form 990 is a critical tool relied upon by regulators, lawmakers, donors, watchdog organizations, citizen whistleblowers, and journalists, and provides insights into an organization’s governance, finances, program activities, and corporate compliance. An organization’s latest filings, and prior filings dating back to 2012, can be easily accessed on Pro Publica’s free database. The IRS also publishes more recent filings and tracks exemption revocation histories on its website.  

The IRS Form 990 must be filed with the IRS annually by tax-exempt organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more, although some organizations are exempt from filing, or eligible, or required, to file another form in the IRS Form 990 series (e.g., IRS Form 990-N, 990EZ, or 990-PF). Copies of this filing must also generally be filed, along with financial statements and other disclosures, with state regulators.  

According to the Trump administration, the coming revisions are intended to improve transparency, strengthen tax administration, and provide clearer reporting on certain activities of tax-exempt organizations. Treasury Secretary Scott Bessent stated in the press release announcing the proposed revisions that public funds and tax-exempt status require public accountability, and: “[w]e 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.” 

Why additional scrutiny of fiscal sponsorship arrangements? 

There is increasing concern by the Trump administration that fiscal sponsorships are being used to funnel funds into causes and activities that are counter to the administration’s priorities. Although the Treasury Department acknowledges in its press release that fiscal sponsorship is an umbrella term for “several longstanding and lawful structures” that allow tax-exempt organizations to support charitable projects and initiatives aligned with their missions, the release further states that recent congressional and administration focus 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,” leading to a call for increased reporting to help address those concerns and “make it harder for rogue organizations to hide behind opaque arrangements.”   

*For further information on Congressional scrutiny of fiscal sponsorship arrangements, see our HOT TOPIC: U.S. Congressmen push for increased fiscal sponsor liability, introduced in both the House and the Senate, designed to increase civil and criminal liability for fiscal sponsors.  

Steps nonprofits can take to mitigate risk and shore up compliance 
  1. Have legal counsel review your nonprofit’s IRS Form 990 and its internal paperwork before the form is filed each year, with specific attention paid to governance and to the issues targeted by the revisions.  
  2. Self-assess using the IRS Good Governance Checklist (IRS Form 14114), as a tool for reviewing your organization’s IRS Form 990 before filing. In 2009, under the Obama administration, the IRS revised the IRS Form 990 to incorporate questions in Part VI about governance and also released this checklist. These changes were highly controversial at the time and received a significant amount of pushback, with critics citing IRS overreach and noting that the Internal Revenue Code does not empower the IRS to regulate governance. The IRS countered, explaining that good corporate governance is critical for meeting the requirements for tax-exemption. Part VI’s questions survived the backlash, and IRS Form 14114 remains a helpful (though not widely known) compliance tool for the sector addressing these evergreen concerns, which were widely publicized in the wake of the Enron scandal and the Sarbanes Oxley Act that followed the scandal.    
  3. In addition, from our friends at the Pennsylvania Association of Nonprofit Organizations (PANO), given the IRS’s stated focus on “who controls the money and where it goes,” unclear or under-documented arrangements will draw scrutiny. Core areas to review now are: 
    • All fiscal sponsorship agreements — roles, responsibilities, and financial controls should be explicitly documented. 
    • Government grants and contracts — ensure proper classification and reporting. 
    • Decision-making authority and financial oversight — ensure there is clear documentation of board-level approvals. 
    • If your organization uses fiscal sponsorship in any form, consult legal counsel before proposed regulations are published. 
What comes next and how nonprofit organizations can help shape the proposed revisions  

Treasury and the IRS have indicated they intend to issue proposed regulations with an opportunity for public comment before finalizing revisions to IRS Form 990.  They have pledged to consider feasibility, proportionality, and reporting burden in crafting the changes.  

Submitting a comment during the public comment period is one of the most effective ways to shape the final rule, so keep abreast of current developments and the opportunity to submit comments by following PANO and the National Council of Nonprofits (NCN).  If your organization has joined other membership associations in addition to PANO, ask what they are doing to provide constituent feedback and comments and how your organization can help.  

It’s not clear whether other forms in the IRS Form 990 series (IRS Form 990-EZ, IRS Form 990-N, and IRS Form 990-PF) will also be revised.