A report released by the Treasury Inspector General for Tax Administration (TIGTA), found that the Tax Exempt/Government Entities Division of the Internal Revenue Service (IRS) examines fewer than 1 percent of the 70,000 applications from groups applying for tax-exempt status each year.

BNA Money and Politics ($$) reports that; "One of the solutions discussed has been to periodically check on whether the organizations are still meeting their tax-exempt purposes and filing requirements. For instance, Congress has discussed the possibility of requiring informal filings by some charities on their fifth anniversary of being recognized as tax-exempt. The advisory committee to the Tax-Exempt and Government Entities unit at IRS recommended an operational review at three years, five years, or some other interval after tax exemption to focus on actual operations, charitable accomplishments, relationships with insiders, and lobbying and political activity."

Could these recommendations be a slippery slope, leading to the IRS assessing a charities' performance?

Last week a new effort began which uses technology to promote a transparent and open government. ChangeCongress wants legislators to make four commitments, which they can do by filling out a form indicating which of the pledges they support. In the end, it provides a graphic that the candidates can then place on their election campaign web sites. Citizens can also fill out pledges to put on their own website. ChangeCongress is an innovative way to organize citizens, encourage them to be politically active, and in doing so demands accountability in political campaigns.

Founder Lawrence Lessig writes on HuffingtonPost.com; "Change-Congress.org will be a bi-partisan, web-based effort to leverage and amplify the important reform work being done by others. […] Change-Congress.org will develop in three stages. The first layer will give candidates and Members of Congress a simple way to signal their support for any mix of four fundamental planks of reform: (1) a promise not to accept PAC or lobbyist contributions, (2) a commitment to abolish "earmarks" permanently, (3) a commitment to support public financing of public elections, and (4) a commitment to compel transparency in the functioning of Congress. Once a candidate or Member selects the planks he or she supports, the site will give the candidate code to embed that pledge on the campaign website. Citizens too will be able to take a similar pledge, promising to support candidates who match their own vision of reform. When they do, they will be linked back to reform organizations that support each plank.

Video of the launch of ChangeCongress is available from the Sunlight Foundation.

The LCCR was not the only one to notice Treasury's leisurely response to Freedom of Information Act (FOIA) requests. The American Civil Liberties Union (ACLU) blog reports; "In the spirit of Sunshine Week, today the National Security Archive announced the winner of its annual Rosemary Award, named after President Nixon's secretary Rose Mary Woods, infamous for 'accidentally' erasing 18 ½ minutes of an important Watergate tape. And the winner is... The Treasury Department, for its mishandling of and all around unresponsiveness to Freedom of Information Act (FOIA) requests!"

Read the National Security Archive's press release here.

In November Senator Charles Grassley (R-IA) began investigating six evangelistic ministries for the possible illegal use of donations to finance lavish lifestyles. Four of the six have not responded to Grassley's inquiries and now, Senator Max Baucus (D-MT) the Senate Finance committee chair has joined the effort. Baucus and Grassley sent letters to the groups with a March 31 deadline urging them to cooperate. Some of the targeted ministries argue that their financial information is private and of no concern to the Senator. Importantly, Baucus has subpoena power, which may be the only way to get the information. Their letter states; "One of the roles of the Finance Committee . . . [is] the exercise of oversight over . . . the Internal Revenue Service to make sure that its rules and procedures meet the purpose and intent of the revenue code, including those rules applicable to non-profit organizations. In order to do this effectively, the Committee needs to understand clearly and specifically how non-profit organizations are structured and operate."

Instructions for the redesigned Form 990 are expected in April. BNA Money and Politics ($$) reports that there will likely be a 30 to 45 day public comment period. "A summary of one to two pages will accompany each schedule, highlighting the controversial items for which practitioners should look in making their comments, . . . [t]his includes governance and compensation questions that have become high priorities for IRS."

The issue of governance has quickly emerged as a major focal point for the agency, and the final Form 990 asks new questions about the composition of charities boards or governing bodies, its governance policies and practices, and the means by which it is held accountable to the public by making governance and financial information publicly available.

In addition, on February 14, the Internal Revenue Service (IRS) released a new educational governance component in its "Life Cycle." For an analysis from OMB Watch on the redesigned Form 990, click here.