IRS Targets Fiscal Sponsors, Threatening Nonprofit Infrastructure
The IRS has announced plans to redesign Form 990, which could impose stricter oversight on fiscal sponsors—organizations that provide financial and administrative support to fledgling nonprofits. This move is part of a broader federal strategy that critics argue is aimed at undermining progressive movements and nonprofits that challenge the current administration's policies. Fiscal sponsors play a crucial role in enabling grassroots organizations to operate by handling compliance and financial management. The proposed changes could lead to increased auditing and administrative burdens, potentially stifling the growth and impact of small nonprofits. 
