Thousands of nonprofits may lose tax-exempt status

[Seabee1973]

http://www.onenewsnow.com/AP/Search/US/Default.aspx?id=1014498

More than 200,000 small nonprofits across the nation are days away from losing their tax-exempt status because they haven't filed a new form with the Internal Revenue Service.

Many of these groups already operate on razor-thin budgets and some worry an unexpected tax bill could force organizations to close.

"The nonprofits in your backyards, some of them are going to be gone," said Suzanne Coffman, a spokeswoman for GuideStar, which tracks data on nonprofits.

It's most likely the nonprofits aren't aware of the Monday deadline that only applies to groups that report $25,000 or less in income, excluding churches. Those organizations may not find out until Jan. 1, 2011, when they're notified they have to pay taxes on donations they thought were exempt. And it could be months before their nonprofit status is restored.

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This could suck for those that havent heard of it before

[twa]

Wow they would have to pay sales tax...big whoop

I guess I'm in the minority that thinks we need to weed out non-profits to get real tax reform.

[Burgold]

The last few years have been tremendously bad for not for profit businesses in general, esp. the non-safety net ones. While individual giving has been fairly steady and actually gone up in a number of cases, foundational giving is way down. The reason being that foundations generally contribute most of their giving through pools invested in the market. That means last years giving was based on the year before (which was the big stock crash). So, a number of them have endurred two years of really reduced or lost support. This year, should be better as the market did much better since March of 2009, but overall, a bunch of the charities are still hurting.

[chipwhich]

Wow they would have to pay sales tax...big whoop

I guess I'm in the minority that thinks we need to weed out non-profits to get real tax reform.

Oh I am with you on that. Some real scams out there.

[DCsportsfan53]

Wow they would have to pay sales tax...big whoop

I guess I'm in the minority that thinks we need to weed out non-profits to get real tax reform.

Oh I am with you on that. Some real scams out there.

Definitely agree. I don't share the heartache of the author in reference to non profits paying taxes or going out of business.

[Fergasun]

It seems like the point of the IRS was to weed out thousands of non-profits.

[twa]

It seems like the point of the IRS was to weed out thousands of non-profits.

I would say it is to verify their legal status,which is kinda their job.

[Bang]

Wow they would have to pay sales tax...big whoop

I guess I'm in the minority that thinks we need to weed out non-profits to get real tax reform.

+1

I'd even go so far as to say start looking at church tax exempt status. After all, the whole country is in a mess, and shouldn't everyone pitch in?

~Bang

[Burgundy Burner]

+1

I'd even go so far as to say start looking at church tax exempt status. After all, the whole country is in a mess, and shouldn't everyone pitch in?

~Bang

nope. absolutely not. that should never happen.

[SC_RedskinsFan]

+1

I'd even go so far as to say start looking at church tax exempt status. After all, the whole country is in a mess, and shouldn't everyone pitch in?

~Bang

I agree with you Bang.

Why should a business be exempt? And you are kidding yourself if you dont think churches are big business... I am sure i will get flamed for that, but its what i believe.

[twa]

nope. absolutely not. that should never happen.

Why not?

Give a generous exemption to all property owners from property tax and there is no restriction of religious freedom.

[Burgold]

The argument some of you are making is sadly true. There are quite a few businesses masquerading as not-for-profits who either aren't or worse are con outfits and we should spot those and de-list them or worse. At the same time, there are many, many exceptional organizations who sacrifice and scimp and do a tremendous good who have taken it on the chin... or worse in recent years.

I think we ought to be careful with our accusations and where we swing our swords. There are some really good outfits that practically do turn water into wine in their machinations to figure out how to serve their population.

Esp. when you never know if one day you may need them.

[twa]

I think we ought to be careful with our accusations and where we swing our swords. There are some really good outfits that practically do turn water into wine in their machinations to figure out how to serve their population.

Esp. when you never know if one day you may need them.

Yes there are,but they need to be regulated and file supporting documentation.

[Burgold]

Yes there are,but they need to be regulated and file supporting documentation.

Aha! I knew you were a closet liberal!!!

[twa]

Aha! I knew you were a closet liberal!!!

Yes I have a strong fascist streak

[Burgold]

Yes I have a strong fascist streak

Wait, fascism is right wing... arg... maybe you only have a tiny substrain of liberalism flowing through your blood.

Obviously just being silly, but I think it's almost become noteable when a conservative argues for regulation and enforcement (especially, against a corporation)

[Goaldeje]

I agree with you Bang.

Why should a business be exempt? And you are kidding yourself if you dont think churches are big business... I am sure i will get flamed for that, but its what i believe.

Nope, you are dead on. I work in different churches everyday, and many of them are what you would think of when you think non-prof. But man, many many churches are businesses, pure and simple. I once heard a pastor say there is good money in the Jesus business.

[Midnight Judges]

+1

I'd even go so far as to say start looking at church tax exempt status. After all, the whole country is in a mess, and shouldn't everyone pitch in?

~Bang

I agree with this. Not real sure why I am expected to subsidize religion with my tax dollars.

[twa]

but I think it's almost become noteable when a conservative argues for regulation and enforcement (especially, against a corporation)

I don't follow..Corps are due increased regulation in exchange for their limited liability status and tax status...tis a trade off you agree to whether it is a non-profit or regular.

Just as married folk get increased regulation when joined together and change their status from individuals.

[AsburySkinsFan]

But man, many many churches are businesses, pure and simple. I once heard a pastor say there is good money in the Jesus business.

Well considering the vast majority of churches in America are small rural churches I would say you're wrong, and if the pastor thinks there is good money in the "Jesus business" then there are two things 1) the pastor is an idiot and shouldn't be in the "business" at all, and 2) he doesn't have a clue what the "business" is about in the first place.

[AsburySkinsFan]

I agree with this. Not real sure why I am expected to subsidize religion with my tax dollars.

You're not subsidizing religion with your tax dollars...that's a complete and utter falsehood, in the church I have NEVER spent a single tax payer cent...your tax dollars do not keep our lights on, they don't pay for our literature, they don't pay for the gas in the church van, they don't pay my salary, they don't pay for the missions work that we do.

Churches are NOT subsidized by tax dollars, to say so is a lie.

[mardi gras skin]

+1

I'd even go so far as to say start looking at church tax exempt status. After all, the whole country is in a mess, and shouldn't everyone pitch in?

~Bang

I agree. I suspect there are a number of religious, educational, and scientific organizations that would have a hard time justifying their non-profit worthiness. Civic leagues, amateur sports leagues, etc. They should all be reviewed.

[Midnight Judges]

You're not subsidizing religion with your tax dollars...that's a complete and utter falsehood, in the church I have NEVER spent a single tax payer cent...your tax dollars do not keep our lights on, they don't pay for our literature, they don't pay for the gas in the church van, they don't pay my salary, they don't pay for the missions work that we do.

Churches are NOT subsidized by tax dollars, to say so is a lie.

You're wrong in several respects. Firstly, the Federal Government gives over $2 billion a year to churches under the auspices of "faith-based initiatives." Also, some years as much as $4 billion is given to Church groups through federal grants. Another $40 billion in federal tax dollars are given to Churches through the states.

But substantially more than that, churches use infrastructure, roads, courts, Government agencies, Government resources, police departments, they enjoy the protections of our military, etc. - just like the rest of us. And you pay nothing. That money has to come from somewhere. By default, you guys are subsidized just like any other entity that enjoys all the protections of law and Government without paying your fair share. Must be nice.

[twa]

You're wrong in several respects. Firstly, the Federal Government gives over $2 billion a year to churches under the auspices of "faith-based initiatives." Also, some years as much as $4 billion is given to Church groups through federal grants. Another $40 billion in federal tax dollars are given to Churches through the states.

But substantially more than that, churches use infrastructure, roads, courts, Government agencies, Government resources, police departments, they enjoy the protections of our military, etc. - just like the rest of us. And you pay nothing. That money has to come from somewhere. By default, you guys are subsidized just like any other entity that enjoys all the protections of law and Government without paying your fair share. Must be nice.

I think you err in thinking this money goes to churches themselves,there are strict guidelines on those funds(which are directed to helping the needy)and are not directed at church members themselves...but rather the public

Churches are people(and mostly taxpaying citizens)

I do think we could address the commercialization of churches to some degree though...as well as other non-profits...but I admit to a bias against mega churches and many of what I consider excesses.

[commyderm2]

You're not subsidizing religion with your tax dollars...that's a complete and utter falsehood, in the church I have NEVER spent a single tax payer cent...your tax dollars do not keep our lights on, they don't pay for our literature, they don't pay for the gas in the church van, they don't pay my salary, they don't pay for the missions work that we do.

Churches are NOT subsidized by tax dollars, to say so is a lie.

I think any "nonprofit" organization that issues administrators bonuses and pays anybody over a 500 thousand dollar salary a year needs to be taxed as a for profit business. Anybody else needs to be left alone to try to persue their absolutely vital societal missions that they mostly struggle to achieve,, especially churches.. If you get rid of nonprofits, you will have to replace their services with government, which will increase taxes for everybody and basically force you to donate for services previously given through non-profits with penalty of prison instead of having the option of hanging up on a solicitor without any implications.. Maybe some of you should rethink your positions on nonprofits..