Grantees and Nonprofit Clients May Be in Danger of Losing Tax-Exempt Status

Hundreds of thousands of exempt nonprofits will lose federal tax exemptions beginning in May
May 7, 2010

Washington, D.C., and Williamsburg, Va.—GuideStar, the leading source of nonprofit information, encourages grantmakers and businesses that work with exempt organizations to remind their grantees and clients that the first legally mandated revocations of tax-exempt status are imminent.

"Once the IRS begins issuing revocation notices in 2011, the sector will change dramatically," noted Bob Ottenhoff, president and CEO of GuideStar. "It will be important for grantmakers, businesses that provide nonprofit discounts, and others who need to verify nonprofit status to know which organizations are still exempt and which are not. As the IRS announces its procedures and as information on the revocations becomes available, we will incorporate them into GuideStar Charity Check, our due-diligence tool for verifying charitable status and researching supporting organizations." the rest