ONEplace Blog

News, comments, resources, and more for nonprofits.

IRS: 275,000 Groups Lose Tax-Exempt Status

The IRS changed the filing requirements so that every tax-exempt organization has to file an annual 990, no matter how small their budget. They promised to drop organizations that didn’t file for three consecutive years. They notified nonprofits and the public over and over, again. They extended the deadline to get 990 filings up-to-date.

Now, the list of nonprofits that have lost tax-exempt status for failing to file has been published—and, it numbers 275,000 (about 14% of all nonprofits in this country)! In Michigan, almost 9,000 charities are on the list.

What does this mean to your organization or you, as a donor? An article in The Chronicle of Philanthropy (6/8/11) summarizes the ramifications of a nonprofit being dropped, affects on tax-deductibility of donations to dropped groups, and how to seek reinstatement. It also provides a link to the list.

Additional information is available on the IRS website for exempt organizations. 

Do you know the current status of the organizations you are involved with as a staff or board member, volunteer, or donor?

Book

IRS: 275,000 Groups Lose Tax-Exempt Status
irs-990-whats-new-160
http://philanthropy.com/article/275000-Groups-Lose-Charity/127854/?sid=pt&utm_source=pt&utm_medium=en
BobbeL

Comments

Thank you for the update. I read over the 'Chronicle of Philanthropy' article that you linked to. But, I'm still wondering, if we donate to a non-profit, is it our responsibility to ensure that they have not been dropped before we take our donation into consideration around tax time? Can we get in trouble if we claim a donation to an organization that no longer has exempt status??
Thanks for a great question. The ultimate responsibility to know if a donation qualifies for a tax deduction is with the tax payer. To check the list of nonprofits whose tax-exempt status has been dropped, use this easy to search site: http://www.irs.gov/charities/article/0,,id=240099,00.html The IRS recently launched an effort to reinstate dropped organizations that are still in operation, so checking with the organizations, directly, and reviewing the list closer to the end of the year will be helpful in assuring your donation is, indeed, tax deductible.

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