Nonprofits & Taxes & Compliance. Oh My.

So once again tax season has come and gone and for many non-profit organizations this may mean changes to their exemption status is on the horizon. Experts predict that thousands of non-profits will lose tax exempt status because they failed to file annual tax returns, Form 990. The IRS is required to revoke federal tax exemption status of any organization required to file a Form 990 that has failed to do so for three consecutive years. Many non-profits that will lose tax exemption status are smaller organizations who are now required to file Form 990-N. This is a new requirement that many organizations may not be aware of. Smaller organizations often operate with little staffing and with volunteers who likely are not aware of important tax compliance issues. This use of resources can increase the chances of making mistakes in filing the correct tax forms. The IRS provides information about charities and non-profits at http://www.irs.gov/charities/index.html.

Accountability and transparency have become vital characteristics needed by non-profit organizations. Grantmakers, donors, and the community at large are more savvy than ever in determining which programs they choose to support. Organizations like GuideStar provide an array of services to increase the transparency of nonprofits to grantmakers such as allowing easy verification of charitable status. On the other hand, non-profits are offered an easy option of providing transparency to the public by creating an account and posting program, financial, and funding data. Organizations can be identified through a quick search on GuideStar .

People who choose to work in the non-profit sector tend to focus on the mission and programs of their organization whether it is to end hunger or community improvement. It is important to remember that as vital as the mission is, it is also necessary to manage the organization well too. "Ultimately, the revocation process will benefit the non-profit sector by weeding out defunct organizations and non-profits that are not meeting their reporting responsibilities" said Bob Ottenhoff, president and CEO of GuideStar. Losing tax exemption means losing revenue and community support and confidence and these are things nonprofits can't live without.

Ch-Ch-Changes

So, here I am six months from my last post and the changes have been enormous in my life. As I talk to the people around me, I feel like this seems to be a time of change for many. I have relocated to the Houston, Texas area and after a few weeks of settling in, I am now re-focusing and back at my blog. I am excited about the many opportunities that Houston provides. It is also comforting that in this era of communicating and working remotely, I still have many connections with my Florida colleagues and friends. I'm looking forward to extending networks and broadening connections between organizations, causes and friendships.

One organization still working to bring together like-minded forces around the world to create art and empower us all created this video during a trip to Haiti . View Bee Gaia/Outside the Box's video and if you are interested in becoming involved in a project directly affecting children and families who were devastated by the recent Hurricane, they welcome donations of goods like: art materials including glue, paintings, crayons to be used in art programs being provided to orphanages in the area. My daughters recently donated teddy bears that you see in this trip. Other items such as soap, antibacterial deoderant soap, mouth wash, combs, shampoo, clear eyes drops, hats,umbrellas ponchos, vitamin C, clothes and shoes are needed and can be mailed to:

Bee Gaia/Outside the Box

1610 Trade Center Way

Suite #4, Naples, FL 34109

or call (239) 272-6152 and ask for Lulu for more information . By communicating through technology, we get the benefit of connecting with a variety of others from around the world and growing a network that is stronger together than apart.