The IRS says that some non-profits have become a “hotbed of tax evasion and abuse.” Congress is threatening action. “The findings have already sent alarms through the nonprofit community. Last month the industry-convened Panel on the Nonprofit Sector offered a preliminary report on how laws could be tightened and practices improved to curb abuse. In some cases fraud and abuse are committed by the nonprofit itself, such as when a charity is established to benefit its main donor; in other cases, the nonprofit acts an enabler for tax-shelter promoters, such as when a municipality or union takes a fee to participate in a deal that allocates “profits” to it and losses to wealthy individuals.”