Date of Defense

Spring 4-13-2000



First Advisor

Kathleen Sinning, Accounting

Second Advisor

Gale Newell, Accounting

Third Advisor

Kay Brown, Kellogg Company




The Internal Revenue Service has issued new rules regarding tax-exempt organizations' public disclosure of their financial activities. The new regulations require not-for-profit and tax-exempt organizations to make certain information regarding their business and financial activities to be more available for public inspection. The regulations were enacted on April 9, 1999 but became effective June 8, 1999 to give tax-exempt organizations a grace period to comply. This paper examines the background of the regulations, detailed description of its contents, penalties for non-compliance, and reactions. The author also makes suggestions for improvements to the regulations, including penalties based on percentage of gross receipts, punishment of individuals and groups involved in disruption of an organization's operations, and an appeals process. Overall the author finds the regulations are useful. Limitations on the study include the subjective nature of professional judgements and small sample size.

Access Setting

Honors Thesis-Campus Only