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As a board member of a charity, I've been asked to report the number of hours that I work per week even though I receive absolutely no compensation.  I think this is a huge infringement on my privacy and I'm wondering if the IRS truly intended to ask for volunteer hours.

Yes.  The IRS specifically asks for the hours worked by officers, directors, and key employees, and the Instructions say that it is incorrect to file a Form that answers vaguely in terms such as “as needed,” “as required,” or “40+.”  The IRS has asked this question for years, but with a lot more attention being paid to the new Form 990, more Form preparers are asking directors directly.

If you think this is an infringement on your privacy, you should be pleased that the Form no longer asks for your address in the list of directors.  The new Form merely asks for your name and title and for information on anyone who cannot be reached at the organization’s office address.  A lot of organizations used to attach the board list, with home address, phone number, family names, sometimes even social security numbers—all of which became available for public inspection.  The temptation to do that now should no longer be present.  (See Ready Reference Page:  “New Core Form 990 Presents New Look for Nonprofit Finances.”)

8/18/2009