AICPA urges IRS to rework its "education letters".

• Position: National

The AICPA is urging the IRS to clarify the purpose of the "educational letters" they recently sent to charitable organizations. The AICPA is concerned that the letters are confusing and creating anxiety among their receipts.

The IRS letters inform recipients that they are not disclosing sufficient fundraising expenses, but do not identify a course of action for the organization to take, the parameters of an investigation, or who the organization should contact at the IRS.

Many of the letter's recipients have little or no fundraising expenses for the following reasons:

* Volunteer fundraising labor is an in-kind contribution that is not reported on Form 990 and does not generate a reportable expense.

* Supporting foundations often...