It’s surprising how many people are involved with non-profit organizations without really paying attention to the tax filing requirements. And this doesn’t just apply to individuals who are on non-profit boards. It even applies to government agencies that operate non-profits, too.
Several years ago, a local City Clerk came to me with a satchel full of records. She said she had just learned one of her city’s police-related organizations had not filed tax returns for several years. She had learned this because a notice had arrived from IRS. They were about to lose their exemption.
Since the organization had not filed for many years, if they were to lose their exemption, all the donations made to that organization would not have been deductible. So, she was concerned for both the continuity of the fund, and with preserving the donor’s deductions.
That’s the real problem. You can go around ignoring the filings for the organization you started, or that you’re involved with. But it’s not just the organization that gets hurt when IRS cancels it’s ticket. It’s also the good people who’ve helped out and made donations, and believed in the organization’s purpose.
You wouldn’t want them to get hurt would you?
Deadline – May 17, 2010 – file your Form 990.
Normally, that deadline would be May 15th – but that falls on a weekend, so…it rolls over to the next business day – the 17th .
You only need to file the Form 990-N, the e-postcard, if your organization is a small non-profit, with annual income or gross receipts of $25,000 . But you will face penalties or loss of your exemption if you don’t comply. You can do this online, so why not do it now? http://www.irs.gov/charities/article/0,,id=217087,00.html
And remember, you can find answers to all kinds of questions about exempt organizations and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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