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ACTION Blog

Don't Risk Your Tax Exempt Status!

10-May-10 11:32 | Benjamin Cordy (administrator)

Don't Risk Your Tax Exempt Status!

According to the National Center for Charitable Statistics, there are 7,663 organizations in Washington State that are at risk of losing their tax-exempt status. Are you one of them?

Why?

A provision buried in the "Pension Protection Act of 2006" requires that every organization file some sort of report every year. Any organization that doesn't for three years in a row will lose their tax exempt status.

Find Out Now!

If you're on the list you have until May 15, 2010 to comply - and get OFF! Find out if your organization or one you support is at risk; simply click here.

What's Next?

Okay, so if you're on the list don't panic. You have until May 15, 2010, to file with the Internal Revenue Service.

  • Organizations with less than $25,000 in annual revenues need to fill out Form 990-N. This is a convenient, easy and electronic form. It asks for eight items of information. The IRS has a comprehensive guide and a link to the form here.
  • Organizations with less than $500,000 in annual revenues and less than $1.25 million in assets can use the Form 990-EZ.
  • Larger Organizations should use Form 990.
  • Private Foundations should use Form 990-PF.

Learn More

Put Barber, editor of the Nonprofit FAQ, has blogged about this very issue on Idealist.org. Check out his article here.

The New York Times reported on the provision, and it's nation-wide impact. Read the article here.

Spread the Word

Tell your friends! Every nonprofit in Washington needs to know about this risk.

 

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