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Council of Nonprofits in the News

Hundreds of Maine Non-profits Lose Tax-Exempt Status

Posted: 
July 14, 2011

Maine Association of NonprofitsIndeed, the new annual filing requirement for smaller non-profits has been in the pipeline for some time. "Actually this is a fairly new development, if you call three years 'news'", says Jennifer Chandler of the National Council Of Nonprofits in Washington D.C.

Chandler says in 2006, Congress passed the Pension Protection Act, which included a provision aimed at providing more accurate data describing the number of active non-profits in the United States. Prior to the new law, non-profits with annual income of less than $25,000, did not have to file annual reports to the IRS. The new law began to require those smaller organizations to fill out a new form, the 990-N e-Postcard.

IRS Revokes Tax-Exempt Status of 33 Mt. Helix Nonprofits

Posted: 
July 12, 2011

Sara Koslow, manager of communications for the National Council of Nonprofits, said that the revocations will help “give us better data on the sector.”

“Many of these nonprofits are either defunct, have consolidated with a larger chapter or were created around an event that happened 30 years ago,” Koslow said. “There is no Chamber of Commerce for the nonprofit sector, so it’s hard to know how many are here and how many are there. This will only help improve the data and analytics of what’s actually out there.”

Long Road Back For Exemption-Revoked Groups

Posted: 
July 1, 2011

Nonprofits that hope to regain the tax-exempt status that was revoked last month better hunker down for the long haul. The review process by the Internal Revenue Service (IRS) to re-apply for tax-exempt status could take an average six to ninth months, even with the expedited process, according to the National Council of Nonprofits.

“While great care has been taken by the IRS to cull this list, the consequences of a loss of tax exemption are severe to the organization, the people who support it, and the community that benefits from its work,” said Tim Delaney, president and CEO of the Washington, D.C.-based National Council. “It is important that every person whose life is touched by a nonprofit organization – and that is just about everyone – check the revocation list to make sure his or her favorite charitable nonprofit isn’t on the list.”

More than 3,100 Ky. groups lose tax-exempt status

Posted: 
June 23, 2011

Kentucky Nonprofit Network"People who donate and don't look at the list don't discover it's not exempt," said David L. Thompson, vice president of public policy for the National Council of Nonprofits. 'We don't want the public to lose faith in nonprofits."

Danielle Clore, head of the Kentucky Nonprofit Network, said groups lost nonprofit status because they are now defunct, a change in leadership meant the paperwork did not arrive in the right hands or simple neglect.

"It could be any number of things," Clore said.

Thompson said in some cases, groups changed boards or addresses and sought nonprofit status after the changes were made.

"Either they didn't follow up or it's a duplicate listing," Thompson said.

Pennsylvania Association of Nonprofit OrganizationsPatricia Mogan of the Pennsylvania Association of Nonprofit Organizations said at least one group in that state learned it lost nonprofit status after the association received a grant to work with them and checked with the IRS. That group is reapplying, Mogan said.

Even though some groups will have to go through refilling for tax-exempt status, the trimmer list will be a benefit in the future, Clore and Thompson said.

"We're excited," Clore said. "It really helps us to better communicate."

Many Horry, Georgetown county nonprofits under fire no longer exist

Posted: 
June 19, 2011

South Carolina Association of Nonprofit OrganizationsNationwide, about 275,000 nonprofits lost their tax-exempt status, according to the IRS. Of that number, more than 3,000 are South Carolina organizations.

Agencies such as the South Carolina Association of Nonprofit Organizations and the National Council of Nonprofits have been informing people of what they can do if their nonprofit's tax-exempt status has been revoked.

"While they are re-filing or seeking reinstatement, they need to be transparent as possible with their boards, members, and especially with their donors," said Sara Koslow, manager of communications for the National Council of Nonprofits.

Donors' contributions to a nonprofit that has lost its tax-exempt status are not tax-deductible.

IRS nonprofit cuts could be good in the long run

Posted: 
June 16, 2011

Alliance of Arizona NonprofitsArizona Alliance of Nonprofits President and CEO Patrick McWhortor says a new law and a resulting move by the Internal Revenue Service ultimately will give the nonprofit world a better gauge of viable players in the field.

“In some cases, these were chapters of national organizations that changed their approach to affiliates, perhaps an organization achieved their goal but never officially shut anything down, so they are left on the books at the IRS,” he said.

McWhortor said the Arizona Alliance of Nonprofits and its umbrella group, the National Council of Nonprofits, has been reaching out over the past year to inform affected organizations about the tax deadline.

Organizations that lost their status are eligible for reinstatement and must apply through the IRS. The Arizona Alliance of Nonprofits also is offering assistance to those that need help.

Local non-profits losing tax-exempt status

Posted: 
June 15, 2011

Alabama Association of NonprofitsOf the 3,463 Alabama non-profit organizations losing their tax-exempt status, a few of them are from Randolph County.

Among them are American Legion Post 53, Ava-Messser Volunteer Fire Department, Boys & Girls Club of Roanoke, Convenant Enterprises Scholarship, the Junior Service League, Inc. of Roanoke, Lebanon Christian Church Cemetery, Randolph County Court Referral of Roanoke,  Roanoke Rotary Charities Inc., the Roanoke Schools Association, the AACS Student Accident Insurance in Roanoke and two that are reportedly no longer in operation, New Choice Intervention Program of Roanoke and Learning Power Inc. of Wedowee.

Russell Jackson, chief operating officer of the Alabama Association of Nonprofits in Birmingham, said his organization spent a good part of last year trying to let people know the IRS planned to do this and trying to reach the different groups.

Some organizations change leaders every year and through lack of communication the information is not passed on.

Since last week when the list was released he has received a lot of calls that he wishes he had gotten last year when they were working hard on this.

Nonprofit Budget Crunch

Posted: 
June 14, 2011

Tim Delaney, president and CEO of the National Council of Nonprofits, argues that state and local governments are shifting their fiscal burdens onto nonprofits and foundations. States, unlike the federal government, are not allowed to run a deficit, which makes a balanced budget a necessity, not a goal. This means that popular programs like Americorp may face crippling cuts to their funding.

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