Did anyone notice that the IRS revoked the tax-exempt status for approximately 275,000 charitable organizations a few weeks ago?
I didn’t pay attention until a client alerted me to it and asked a good question:
What should a private foundation do if they have grantees who lost their exempt status? For prior grants? For multi-year commitments?
I am also thinking about donors and their deductions and about nonprofits who really need that exempt status. There are going to be a ton of questions on this one as those affected wake-up.
Check out this article from my favorite tax blogger (TaxGirl) as an intro to this gigantic problem that smaller nonprofits and their donors are going to be dealing with:
And, stay tuned for all of the new legal issues…