Did You Know? addresses best practices and information relevant to Pioneers’ unit leadership. The topics come from frequently asked questions from the field received at Pioneers headquarters. The goal is to share facts, strategies and information that helps strengthen each unit’s ability to effect immediate, tangible change in our local communities as part of our network of volunteers.
Did you know that beginning with the May 17, 2010, filing deadline, the IRS will begin revoking the tax-exempt status of nonprofits required to file an annual return (Form 990-N, 990-EZ, 990, or 990-PF) that have failed to do so for three consecutive years?
Why should Pioneers units be aware of these changes?
Pioneers Headquarters files an annual return on behalf of all Pioneers units. However, when units are partnering with other public charities, you should check to ensure that the potential partner organization’s tax-exempt status is current. This new ruling by the IRS may result in many public charities losing their tax-exempt status. Small organizations with revenues of $25,000 or less are particularly vulnerable, since before 2008, they were not required to submit annual filings to the IRS, and they may not be aware of the requirement. The IRS will begin issuing the revocation notices in 2011.
Learn more from GuideStar about why the IRS is revoking tax exemptions so you can ensure your Pioneers’ unit chooses wisely when partnering with a fellow non-profit.
Have a question or topic you would like to see addressed? Email us at Pioneers Headquarters.