This article originally appeared in the February 2004 issue of EDINews, the newsletter of the Electronic Data Initiative for Nonprofits (EDIN).
by Midori Morgan-Gaide, Manager, IRS EO Electronic Initiatives Office
In November's EDIN newsletter, we illustrated the differences in processing of electronic and paper returns. In reviewing this chart, it becomes clear that e-filing results in fewer IRS resources devoted to opening and sorting mailing, keypunching data, generating correspondence and filing returns. However, many of you are more interested in the benefits you receive by participating in e-file.
At many nonprofit organizations, the continual search for new ways to cut costs is a simple fact of life. Any new process that represents a potential means of saving money tends to be welcomed with great enthusiasm. When the new process is technology based, however, that enthusiasm is sometimes laced with mistrust.
Public charities depend on generous donations from private citizens and businesses to continue their good works. Not all the contributions that keep these organizations running, however, are cold, hard cash. "In-kind giving" refers to contributions of goods and services that are of value to a nonprofit organization. Businesses do it, corporations do it, and so do individual donors.