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?
IRS: 275,000 Groups Lose Tax-Exempt Status