Federal Tax, Tax

How to Keep Your Organization’s Tax-Exempt Status

The IRS regularly revokes the tax-exempt status of nonprofit organizations that violate its rules. Such revocations often carry dire consequences because itemizing donors may no longer claim tax deductions for their gifts. This can, in turn, dramatically reduce donations. To help protect your nonprofit from losing its exempt status, follow all applicable IRS rules. For example, ensure you file annual Form 990s, pay any unrelated business income tax you owe, avoid political lobbying activities and prevent “insiders” from receiving private benefit or inurement from your operations. If your exempt status is revoked, it’s possible to get it back. Contact us if you need help © 2024