HARRISBURG – State Rep. Camille “Bud” George, D-74 of Houtzdale, is urging nonprofit organizations to take steps to protect their tax-exempt status with the Internal Revenue Service.
“As many as 400,000 nonprofits nationwide – and more than 30 based in Clearfield County – may be at risk of losing their tax-deductible status with the IRS,” George said. “New rules now require nonprofits raising less than $25,000 annually to file with the IRS, and the deadline is midnight Saturday.”
According to the IRS, the Pension Protection Act of 2006 requires that all nonprofit organizations, other than churches and church-related organizations, must file a Form 990. Any organization that fails to file for three consecutive years automatically loses its 501(c)(3), federal tax-exempt status, which means an organization must file income tax returns and pay income tax, and its contributors will not be able to deduct their donations.
George said small tax-exempt organizations with annual receipts of $25,000 or less can file an electronic notice Form 990-N – known as an e-Postcard — which asks for eight items of basic information. Tax-exempts with annual receipts above $25,000 must file a Form 990 or 990-EZ, depending on annual receipts. Private foundations file form 990-PF.
More information and instructions to file the e-Postcard is available online under “Charities and Nonprofits.”
Information about what nonprofits may be at risk of losing their 501(c)(3), federal tax-exempt status is available online.
“I counted 36 nonprofits in Clearfield County – including PTAs, clinics and other groups — which may be at risk of losing their tax-exemptions if they don’t file by midnight Saturday,” George said. “Although some of the groups may have disbanded or already filed the e-Postcard, it may be prudent to double-check the status.”