More than 6,000 Indiana not-for-profits received an unwelcome surprise this week. The IRS revoked their not-for-profit status, claiming that the organizations had not filed their annual tax reports. This means that contributions made by supporters are not tax deductible and that each organization’s income is now taxable.
If you serve on the board of a not-for-profit, it might be a good idea to check the list to make sure your organization’s tax-exempt status was not revoked. There are many known names on the list, including several Boy Scouts of America organizations, American Legions, Elks, Kiwanis and social sororities. Many of these organizations have likely ceased operations or have merged into other organizations. However, some of the charities are still operating and may have either changed locations or may not be aware of the filing obligations.
If your organization is no longer operating, you may want to consider dissolving the entity to sever any liability that might extend to officers and/or directors.
A list of organizations which lost their status may be found at http://www.irs.gov/.Go to blog homepage >>