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.
Que Fregados 
Some of those may be defunct groups. I’ve been here for over 10 years, but have never heard of the Laredo Volunteer Lawyers program.
As a treasurer of one of these groups, we just found out a couple of months ago. We are trying to get the group back together after a couple of years of non activity.
The Martin High School Tiger Band?
I think when organizations look into the advantages of being a 501c3 they get gung ho in getting it done. Then, the interest falls off, including the interest in filing the required annual reports. Of maybe the purpose for the exempltion just went away. Good posting, anyway. That ought to be an item for a wider spread of news information, such as LMT for Laredo organizations. Some, I will bet you, are still operating under the premise that they are 501c3’s. They and their clients ought to know the latest status.
Chuck – not all of them are 501c3 but they are all nonprofit, tax-exempt status. When the law changed, as you know, if you make under $25,000 a year – you only have to file a simple postcard. Hopefully the regular news media will pick it up. I just got an email from Diana at the city since she is at the nonprofit center but she doesnt have contact with all nonprofits. I am sure they will get a notice from the IRS – as Christy noted above. That is… if they are still interested in remaining as a group. Some, like AAUW, are defunct (I used to be a member long ago).
as a person who has devoted my education, time & heart i have to say karma has come around for some of these. i worked hard to become a good productive citizen who earned a double major degree in both psychology & political science. I have gotten nothing for my years of dedicated hard work as a social worker/community do good-er by trade, i left the state (human services) to be part of the local non-profit community here only to have it steam-roll over me with it’s egotistical inept that are in charge of nothing more than looking like they are working when indeed, they are not. as a person who was born for the sole purpose of bringing others up, i am so disappointed that i have not been given that chance due to the mishandling of such places i’ve worked at. i miss it so very much. :o( sigh.