IRS clamps down on executive pay at nonprofits

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The Internal Revenue Service said Tuesday it will examine 2,000 nonprofits nationwide to determine whether their compensation packages for top leaders are too lavish, according to the Washington Post. The enforcement campaign includes hiring dozens more IRS agents.

Congress has pressured the IRS to be more vigilant in policing the nation's charities.  The IRS, in turn, has sent out hundreds of letters to nonprofits asking them about the compensation of specific individuals.

"It's is a way of alerting the charitable community to 'Pay attention to what you're doing,' " said Fred T. Goldberg, a former IRS commissioner. "We're not messing around."

Senate Finance Committee Chairman Charles E. Grassley (R-IA), who is heavily involved in monitoring nursing homes, said stronger laws governing executive pay and other compensation deals at charities are still needed.