Panel on the Nonprofit Sector Proposes
Supplemental Recommendations to Congress and the Sector

(Washington, D.C., April 24, 2006) – The Panel on the Nonprofit Sector, composed of leaders from America’s charitable organizations, today offered additional recommendations to Congress and the nonprofit sector as part of its continuing effort to strengthen the accountability of the nation’s 1.3 million charitable organizations.

This Supplemental Report is a companion to the Panel’s Final Report delivered to Congress last June, which offered over 120 recommendations to strengthen the transparency, governance, and accountability of the charitable sector. The Supplemental Report makes recommendations for action by Congress, the IRS, and charitable organizations in nine areas including international grantmaking and charitable solicitation. The report incorporates input from people across the charitable community.

“These recommendations are another part of the charitable sector’s commitment to come together and ensure that its organizations meet the highest possible ethical standards,” said Diana Aviv, executive director of the Panel and president and CEO of Independent Sector. “The Panel will continue to work with the sector and government officials to encourage implementation of its comprehensive proposals.”

Independent Sector convened the Panel in October 2004 at the encouragement of the leadership of the U.S. Senate Finance Committee. The Panel’s Final Report has already helped many charitable organizations improve their governance practices and provided guidance to members of Congress, the IRS, and state oversight officials. Many of the Panel’s recommendations were included in tax legislation that was introduced in late November 2005.

The Panel will continue its work this year to develop recommendations on financial reporting standards, improvements to the Forms 990 and 990-PF, self-regulation by charitable organizations, and sample governance policies.

To download a copy of the Supplemental Report and to learn more about the work of the Panel on the Nonprofit Sector, visit www.NonprofitPanel.org.

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The Panel on the Nonprofit Sector is an independent panel of 24 leaders from a wide range of the country's public charities and private foundations. Convened by Independent Sector at the encouragement of the leadership of the U.S. Senate Finance Committee, the Panel has worked since October 2004 to develop recommendations to improve the governance, ethical conduct, and oversight of nonprofit organizations. A Citizens Advisory Group, an Expert Advisory Group, and five specialized Work Groups assisted the Panel, which also invited input from charities and foundations of all sizes serving diverse missions and geographic locations. The Panel released a major report in June 2005 and plans to make further recommendations on self-regulation and financial reporting. Its current work is being assisted by an Advisory Committee on Self-Regulation of the Charitable Sector and advisory committees on financial reports.

Independent Sector is a nonprofit, nonpartisan coalition of approximately 600 charities, foundations, and corporate philanthropy programs, collectively representing tens of thousands of charitable groups in every state across the nation. Its mission is to advance the common good by leading, strengthening, and mobilizing the nonprofit community.