On a more serious note for nonprofits…

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:

http://blogs.forbes.com/kellyphillipserb/2011/06/08/irs-issues-guidance-for-charities-and-a-warning-to-donors/

And, stay tuned for all of the new legal issues…

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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