The Journal Gazette, 600 W. Main St., Fort Wayne IN

Non-profits need to get busy and file returns

For months, the IRS and advocates of charitable groups have been warning that non-profits could lose their tax-exempt status if they don’t file tax returns. Changes in federal law require nearly all non-profits to file, including tens of thousands of organizations that previously did not have to file because their finances were not large enough to require it. (Religious congregations are still exempt.)

The new law created a postcard-size return for such groups, the simple 990-N. Even the smallest groups – those with less than $5,000 – don’t have to get formal IRS non-profit status but now have to file the return.

The first filing deadline passed May 17, and now Guidestar – an organization that encourages responsible giving by enhancing transparency for non-profits – estimates more than 355,000 organizations face revocation of their non-profit status.

Congress was right to adopt laws that require better reporting by all non-profits. And they have plenty of warning. Groups that missed deadlines can still file – the IRS just extended the deadline to October. After a group is formally revoked and the IRS publicly lists the loss of the non-profit status, donations are no longer tax-exempt.