Wednesday, August 4, 2010

The Nonprofit Sector May Shrink 25%

On May 17, 2010, the IRS began revoking tax-exempt status from nonprofits that failed to file three consecutive annual returns (Form 990-N, 990-EZ, 990, or 990-PF). As a result, as many as 300,000 nonprofits may lose their tax-exempt status, effectively shrinking the nonprofit sector by 25%.
What do YOU need to know?
• Which nonprofits are at risk?
• What happens to a nonprofit that loses its exemption?
• What happens if a donor gives to a charity that has lost its exemption?

GuideStar's new report, Automatic Revocation of Nonprofits' Tax-Exempt Status: What Nonprofits, Grantmakers, and Donors Need to Know, answers all of these questions, and more. Written by Linda M. Lampkin of ERI Economic Research Institute, it is a no-nonsense overview of the impact of this earthshaking development in the nonprofit world.

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