As long-time readers of our articles know, most of our posts focus on tips and best practices for effective nonprofit management. This post is going to be a little different. There is so much going on right now that affects nonprofits, we thought it would be a good idea to provide you with a brief run-down of some things you need to know. Some of it is related, some not. Here we go…
1. Many smaller nonprofits could lose their tax-exemption this year. How? Tax filing year 2009 is the third year that the IRS has required the filing of Form 990-N for organizations averaging under $25,000 in annual revenue. Prior to 2007, no filing was necessary. IRS regulations state emphatically that any 501(c)(3) public charity that fails to file a required Form 990 for three consecutive years will automatically lose their tax-exempt status. Unfortunately, many organizations are either still unaware or just whistling Dixie and not taking this seriously. I expect panic to set in when letters of revocation start hitting mailboxes later this year.