Is your nonprofit at risk?
Many local nonprofits will lose their tax exempt status as of May 17 unless they file an IRS form 990 or request an extension by filing a form 8868. United Way’s Center for Nonprofits is trying to contact area nonprofits as quickly as possible and get the word out about this issue.
The Internal Revenue service has announced that it is revoking the 501 c 3 status of organizations who have failed to file an annual “information return” (IRS Form 990) for the past three years.
Many of these small nonprofits were not required to file a return prior to 2007, when a change in the rulings began requiring an annual 990 for all tax exempt organizations, regardless of gross revenues. Prior to 2007, those with annual revenues under $25,000 did not have to file.
“We’re concerned that many of these organizations are simply not aware of these changes instituted by the IRS,” said Sheila Moore, Executive Director of United Way’s Center for nonprofits. The types of organizations at risk range from youth mentoring organizations and churches to Parent Teacher Associations.
Organizations may file for an extension by completing Form 8868 and submitting it by the original due date. Once organizations lose their tax exempt status, they must reapply, and any donations made to them or income received after they lose their exempt status may be subject to taxes.
If you represent or work with a small nonprofit organization that does not file annual 990 income tax forms, please call United Way’s Center for Nonprofits as quickly as possible to find out if you are at risk. The Center for Nonprofit’s number is 423-752-0351 or 752-0329.
For more information, please go to the IRS web site at http://www.irs.gov.
United Way’s Center for Nonprofits is a management service organization whose purpose is to help nonprofit organizations achieve their missions more efficiently and effectively. The Center offers workshops, tailored training sessions, consultation services, planning facilitation, board development and a library dedicated to excellence in nonprofit management.
United Way advances the common good by educating children to be ready for school, promoting economic stability so people can provide for themselves and their families, and by caring for the most vulnerable in our community. Thanks to an endowment fund that covers all overhead and administrative expenses, one hundred percent of contributions received go directly to these services that help individuals and families in Walker, Catoosa and Dade Counties.