Every week, nonprofit organizations come to us because they have been suspended by various government agencies. Some suspensions are easy to fix than others, but many find themselves in the worst situation possible. They have lost their 501c3 status from the IRS. Why? Because they did absolutely nothing. They didn’t hire someone to keep them compliant and they didn’t file the required annual documents themselves. After the filing date of the 3rd consecutive year that reports are not filed, the IRS terminates their 501C3 status. This happens automatically and without advanced notice.
In order to safeguard your 501c3 status, you MUST file your required 990 form annually. The consequences of losing your status can keep you from qualifying from taking tax exempt donation and you may lose out on grants specifically for 501c3. In addition, you are not guaranteed that your 501c3 will be reinstated. If it is, you can have a lag time of up to 6 months in which you technically cannot operate as a 501c3.
If you’ve fallen behind on filing your form 990 (any versions) you can file the most current year’s form on the IRS website, as of this writing that’s for 2022. If you owe forms for older forms, you will need to find an authorized filer for those form. ALM Business Institute can file your 2020 and 2021 form for you.
ALM Business Institute is your one stop shop for setting up new nonprofits, and fixing those that have fallen out of compliance. Call to schedule your complimentary consultation today 866-887-3737.
