I found this article in a mass email that I received from a colleague. I clicked on the link and read through the Top Ten Arts Policy Stories of 2010. Number 7 on their list is a little article about the IRS revoking up to 300,000 arts organizations. The interesting part of the story is where it proclaims that "This story went virtually unreported this year, but those who continually bemoan the rise in the number of nonprofits in this country had a bone thrown their way this year."
This article states that the NFPs that are at risk are those with a budget less than >$25,000. The IRS requires that the approximately 714,000 organization with the >$25,000 budget complete the 990-N "postcard" form requesting basic information. Apparently, nearly half of the 714,000 organization completed the postcard for the past 3 years in a row. After many delays and extensions, the IRS has already begun to throw out some organizations, are expected to publish the entire list soon.
Some of these delinquent organizations have been dissolved or never created, others are thriving.
This news story puts an ugly spot light on NFP's in America. Numerous politicians have expressed their disdain of the NFP sector, and are beginning to corner the NEA as necessary budget cut. This should be a wake up call to the small NFP of America, file your tax forms!
Createquity
IRS news room
Justin
Last time I checked, nonprofit organizations were filling a void created by the government and the private sector. Without the nfp sector we would be forced to rely on the government or public business enterprises to provide us with all necessities, which as history has shown us is not most advantageous choice.
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