Be aware, this information is based on a list published by the IRS of all organizations in the US that were at risk of revocation, and on the assumption that these organizations did not follow up by last Friday. Some of them might have filed after the list was published, but I expect that most of them have had their status revoked now. We'll see the final numbers over the next few weeks. So what does this mean?
For donors: if you donate to one of these organizations, you will not be able to deduct the donation from your income for tax purposes.
For the organizations: They will have to pay income tax. If they wish to regain their tax-exempt status, they will have to start over and file a Form 1023 and pay a fee of $850 to apply for exemption. They will also lose their "good standing" with the NM Attorney General, who keeps a list of all "kosher" nonprofits, which is made accessible to the donating public.
For communities: We may lose some organizations that truly had benefit and a charitable purpose. But I suspect that these are few and far in between. The annual tax return for small organizations is a quick online postcard, not exactly a big onerous burden. If you can't comply with that, I am not sure how valid your organization is, frankly.
For the IRS: the agency will be able to clear their database of hundreds of thousands organizations who have seized to exist, or lack the capacity for compliance with section 501 (c) (3) of the tax code, for whatever reason. The IRS will probably experience a slight increase in applications for exemptions, as the organizations that goofed, but still exist, try to regain their status.
For social scientists and third sector researchers: This is significant, because "dead" organizations skew the statistics on the sector. IRS Forms 990 are public documents, and constitute the only solid primary data source on the sector as a whole. The Pension Protection Act of 2006 mandated that more than 714,000 organizations with gross receipts less than $25,000 need to file the new Form 990-N. This was an effort to keep better track of organizations, and researchers will welcome the results, I assume. I am curious, and hopeful that all over the country people are analyzing the impact of this "cleansing" on their data, and on their states and communities.
The researchers at the Urban Institute's National Center for Charitable Statistics have started this summer to review the non-filers, trying to categorize major groups and detect trends.
Many of their findings are true for our rural area. Nationally, a lot of civic associations are losing their status. In Silver City, this includes the Kiwanis Club, the Women's Club, and the Knights of Columbus. To my knowledge, these are active groups accepting donations on a regular basis. We are also loosing a Humane Society, the Scott Nichols Foundation, and two nonprofit incarnations of the WNMU Campus Ministry. Maybe they need some capacity building? Here's the list:
AMERICAN LEGION (Lordsburg)
BECAUSE HE LIVES MINISTRIES
BIG ALS OUTDOORS ADVENTURES
COLD SPRING PARK PROPERTY OWNERS ASSOCIATION
COPPER THISTLE PIPES AND DRUMS
FRIENDS OF THE OWLS INC
GILA TRAPPERS INCORPORATED
GLENWOOD AREA CHAMBER OF COMMERCE
GRANT COUNTY ASSOCIATION FOR RETARDED CHILDREN
GRANT COUNTY COMMUNITY SERVICES
GRANT COUNTY SOCIAL SERVICES COUNCIL
GRASSBANK INCORPORATED
HIDALGO HUMANE SOCIETY
HBNM
INSTITUTO PAZ EN LAS AMERICAS
INTERNATIONAL ASSOCIATION OF LIONS CLUBS (Lordsburg)
KIWANIS INTERNATIONAL INC (Silver City)
KNIGHTS OF COLUMBUS
KNIGHTS OF PYTHIAS OF NEW MEXICO
KNIGHTS OF PYTHIAS OF NORTH AMERICA SOUTH AMERICA EUROPE ASIA AFRICA &
KUSINARA
MIMBRES MUSEUM RESEARCH CENTER INC
MOUNTAIN STATES ASSOCIATION OF CYTOTECHNOLOGISTS
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION
NATIONAL ASSOCIATION OF LETTER CARRIERS
NATIONAL SOCIETY OF THE DAUGHTERS OF THE AMERICAN REVOLUTION
NEW MEXICO FEDERATION OF BUSINESS AND PROFESSIONAL WOMENS CLUB
PARENTS ANONYMOUS OF SILVER CITY NEW MEXICO INC
PUBLIC LANDS ACTION NETWORK
RAINBOW MTN MED
SILVER CITY BASEBALL CLUB
SILVER CITY WOMENS CLUB
SILVER CITY-GRANT CO HOME BUILDERS ASSOCIATION
SILVER GOLF CLUB
SOL CENTER FOR PERFORMING ARTS INC
SOUTHWESTERN HISPANIC ROUND TABLE
THE BOB PAYETTE MEMORIAL ANIMAL FOUNDATION INCORPORATED
UNITED CAMPUS MINISTRY AT W N M U
UNITED CAMPUS MINISTRY AT WESTERN NEW MEXICO UNIVERSITY
UNITED VETERANS CENTER 806 BLACK ST
