Despite headlines over Warren Buffett's $31 billion pledge to the foundation of his good friend Bill Gates in June, much of the growth in the nonprofit sector in recent years has come from much smaller charities.
Today there are at least one million U.S. charities and foundations, excluding religious groups, up nearly 60% in the past decade. A key issue [for charities and foundations] is accountability -- and whether the $3.37 trillion nonprofit sector is capable of policing itself.
Two years ago, the Senate Finance Committee told nonprofit leaders it was considering "comprehensive reforms to protect charities from bad actors and strengthen their accountability to donors." The warning followed public outrage over disclosures about costly perks being reaped by private foundations, and questions about governance practices at the Nature Conservancy, the American Red Cross and other nonprofit organizations.
In response, Independent Sector, a leading umbrella organization representing charities and foundations, organized a blue-ribbon panel to discuss overhauls and make recommendations, including a redesign of the tax form charities file to the Internal Revenue Service.
[Excerpt of an article by Sally Beatty The Wall Street Journal]
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