Nonprofits may lose tax exemption

first_imgUnited States Bowling Congress, are you still knocking ’em down? Still hoping, Hope for Tomorrow? Columbia River Organ Club, do you still play? If so, you need to let the federal government know right away — or you could lose your federal tax exemption.Jeanne Kojis, executive director of the Nonprofit Network of Southwest Washington, has sent a couple of e-mail blasts to as many of these small nonprofit groups as she has contact information for — but that’s not all of them.She’s trying to spread the word that IRS rules are changing, and that many of the smallest tax-exempt organizations — which haven’t needed to file taxes, register their status or otherwise stay in touch with the government for years — are up against a May 17 deadline.All that’s required, for those with annual revenues of less than $25,000, is the filing of a simple “e-postcard” version of IRS form 990-N by May 17. Larger organizations must file a standard 990 or 990-EZ form. To file, visit that miss the deadline could lose their federal tax-exempt status — meaning they couldn’t accept tax-deductible donations or apply for foundation grants, Kojis said. And re-upping can take a stack of paperwork and cost $750 or more, she said.“It takes months,” Kojis said. “You don’t want to go through that pain again.”Especially vulnerable are mom-and-pop charitable operations and volunteer entities with shifting casts of characters, she said.“Very small groups where records and even the knowledge of what they need to do to comply with the law gets passed along from volunteer to volunteer, they really ought to take a look at the list,” she said. “This thing is not well-known.”last_img read more

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