Guidestar reveals Automatic Revocation of Exemption for Non Profits

Check the status of your organization now!

The IRS has published the first Automatic Revocation of Exemption List [http://www.irs.gov/charities/article/0,,id=240099,00.html?hq_e=el&hq_m=1144584&hq_l=4&hq_v=0f70152241]. It lists approximately 275,000 nonprofits whose tax-exempt status has been revoked because they failed to file a Form 990, 990-N, 990-EZ, or 990-PF for three consecutive years.

What does publication of the list mean to you?

If your organization appears on the list, you must now must file a federal income tax return and pay federal income taxes. If you previously could accept tax-deductible contributions, you no longer can do so.

If your organization is not on the list, technically you don’t have to do anything. This a good time, however, to reach out to your donors, funders, and other constituents and assure them that you are in good standing with the IRS. You may also wish to suggest that your supporters consult the list to ensure that the other nonprofits they give to are still exempt.

Why is the IRS Revoking Nonprofit Tax Exemptions?

The Pension Protection Act of 2006 requires the IRS to revoke the tax exemption of any nonprofit that is required to file an annual return (Form 990, 990-N, 990-EZ, or 990-PF) but has failed to do so for three consecutive years.

Revocations are mandatory and automatic under the law. The IRS will update the Automatic Revocation of Exemption List monthly.

Thanks Guidestar! Visit http://www2.guidestar.org/Home.aspx

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About Gary Coiro

Nonprofit & Church Leader Nonprofit Leader and Consultant since 2004, following 15 years as a pastor. Competencies include board development, fundraising, staff development and management, strategic planning, church work, Bible teaching, and capital campaigns. Currently consulting and serving on the Church Ministries Management Team for a large multi-cultural evangelical church.
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