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%. In response to this dramatic development, GuideStar has published a free report that addresses the following questions:
- 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?
Posted by Joshua Hock, Associate Editor, Wealth Strategies Journal
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