Over 21,000 New York Nonprofits at Risk
Today on Idealist’s main blog, we issued a second warning about a new tax law that many nonprofits have apparently not caught wind of yet. Put Barber explains:
New rules passed in 2006 require nearly every exempt organization (houses of worship are the exception) to [file a Form 990]; previously, only organizations with more than $25,000 in annual revenues needed to do it.
An organization that misses three years in a row will be automatically removed from the list of approved tax-exempt organizations.
The IRS is offering one more chance to avoid that unhappy outcome. An organization that files the necessary report between now and October 15 of this year will be considered to have met the deadline.
A lot of the organizations that seem to have missed the May 17 date are listed on these files from the IRS. You can check pretty quickly to see whether your organization, or one you care about, needs to pay attention to this new deadline to avoid the expense and extra work of re-applying for exemption later on.
A quick glance at the list for New York State shows that we have over 21,000 nonprofits who haven’t filed for the past three years.
So, in case you haven’t gotten the point yet… file that 990 ASAP! The Nonprofit Coordinating Committee of New York offers an explanation of the form itself.