Getting your player ready...
As many as 400,000 nonprofit organizations are weeks away from a doomsday.
At midnight May 15, one-fifth to one-quarter of about 1.6 million charities, trade associations and membership groups will lose their tax exemptions, thanks to a provision buried in a 2006 federal bill aimed at pension reform. The 2006 federal legislation required all nonprofits to file tax forms the next year. Previously, only organizations with revenues of $25,000 or more had to file.
The law also directed the Internal Revenue Service to revoke the tax exemptions of groups that failed to file for three consecutive years. Three years have passed, and thus, the deadline looms.
