Today, 89 local nonprofits lost their “charity” tax-exempt status. How much do you want to bet some of them don’t even know? And by the looks of it, some might not care since the organizations have been dead for a while. Others though… better start getting their groveling plan into action!
The Chronicle of Philanthropy indicates that 275,000 groups didn’t file with the IRS for three consecutive years and are now not tax-exempt. You can find the IRS.gov list here, just click on the state of interest.
That is bad news is worse for some of your more active organizations but the Chronicle does say this about getting reinstated:
Organizations that are affected by today’s action can ask the IRS to reinstate their tax-exempt status retroactively. Applying can cost as much as $850, but the fee will be reduced for small groups that can prove they had good reason not to comply with the paperwork rules.
“It looks like the IRS is bending over backward to allow for retroactive re-establishment of tax-exempt status,” said Marcus S. Owens, a Washington lawyer who formerly headed the Internal Revenue Service’s tax-exempt division.
So hop to it LULACS, Daybreak Rotary, Friends of the Library, Texican Cattle Women, Laredo-Webb Bar Association, Martin High School Tiger Band, Jalapeño Festival, Blue Santa, Newcomers, VFW and so on and so on and so on… Certain treasurers have some ‘splainin’ to do but more importantly – work ahead. The status of the organizations is going to put a real damper on fundraising this coming year.