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| Will Your Nonprofit Lose Its Tax-Exempt Status? https://www.rypn.org/forums/viewtopic.php?f=1&t=29304 |
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| Author: | Alexander D. Mitchell IV [ Mon Apr 26, 2010 2:38 pm ] |
| Post subject: | Will Your Nonprofit Lose Its Tax-Exempt Status? |
Not just fear-mongering right-winger blogs saying it, now the New York Times is saying it: Quote: As many as 400,000 nonprofit organizations are weeks away from a doomsday. At midnight on May 15, an estimated one-fifth to one-quarter of some 1.6 million charities, trade associations and membership groups will lose their tax exemptions, thanks to a provision buried in a 2006 federal bill aimed at pension reform. ... The federal legislation passed in 2006 required all nonprofits to file tax forms the following year. Previously, only organizations with revenues of $25,000 or more — or the vast majority of nonprofit groups — had to file. The new law, embedded in the 393 pages of the Pension Protection Act of 2006, also directed the IRS to revoke the tax exemptions of groups that failed to file for three consecutive years. Three years have passed, and thus the deadline looms. More: http://www.nytimes.com/2010/04/23/us/23 ... ef=general http://www.irs.gov/newsroom/article/0,, ... 50,00.html http://www.irs.gov/charities/article/0, ... 50,00.html http://philanthropy.com/blogPost/Up-to- ... ups/23403/ |
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| Author: | PrrOpCrew [ Mon Apr 26, 2010 4:40 pm ] |
| Post subject: | Re: Will Your Nonprofit Lose Its Tax-Exempt Status? |
Yup. The local NMRA Division, of which I'm an officer of, recently applied for 501(c)3 status and was denied, being told that the NMRA is not an "Educational Organization". It was noted that other divisions are already 501(c)3 non-profit under the basis of education and we were told that they got away with with it. So, given that. I'm not surprised. |
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| Author: | Heavenrich [ Mon Apr 26, 2010 8:59 pm ] |
| Post subject: | Re: Will Your Nonprofit Lose Its Tax-Exempt Status? |
Alexander D. Mitchell IV wrote: Not just fear-mongering right-winger blogs saying it, now the New York Times is saying it: Quote: As many as 400,000 nonprofit organizations are weeks away from a doomsday. For 'small' non-profits, all that's needed is a post card type form that is very easy to fill out.... but one thing to keep in mind is there also may be state procedures that have to be followed to keep an organizations status as a corporation alive. Bob H |
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| Author: | Stationary Steam [ Mon Apr 26, 2010 10:40 pm ] |
| Post subject: | Re: Will Your Nonprofit Lose Its Tax-Exempt Status? |
This year the threshold for the 990-N is $25,000, but next year it jumps to $50,000. So if your gross income is under $50,000 a year you don't have to file the 990EZ or long form. But you can file for an automatic 3 month extension so your return would not be due until August 15. |
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| Author: | superheater [ Mon Apr 26, 2010 10:56 pm ] |
| Post subject: | Re: Will Your Nonprofit Lose Its Tax-Exempt Status? |
Actually, having seen the NYT's reporting on financial matters, I basically ignore it. This was a well known provision, and I believe there was a thread here when the "Pension Protection Act of 2006" passed. Here's from the horse's mouth: Whenever possible get the original source: Announcement about filing requirement: http://www.irs.gov/newsroom/article/0,,id=218550,00.html PPA 2006 provisions: http://www.irs.gov/charities/article/0,,id=161145,00.html Filing package: http://www.irs.gov/pub/irs-pdf/f1023.pdf Yup. The local NMRA Division, of which I'm an officer of, recently applied for 501(c)3 status and was denied, being told that the NMRA is not an "Educational Organization". It was noted that other divisions are already 501(c)3 non-profit under the basis of education and we were told that they got away with with it. One thing you should know about the exemption process; they are looking for certain buzzwords and key phrases. Get the determination letter & 1023 package from a successful applicant and use their language or get an attorney, CPA or Enrolled Agent. Keep in mind, the charitable sector is in the cross hairs of the present administration; they want to control the flow of funds and are floating the limitation on deductability of contributions proposal from last year again. If they don't get that; I expect soft tyranny/administrative frustration in the form of tighter requirements, more audits and filing. |
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