Tax-Exempt Status of Local Organizations in Jeopardy

You may have seen reports about an October 15th deadline for US nonprofit organizations to get their acts together or risk losing their tax-exempt status. According to this website, 320,000+ organizations are at risk of losing that status, primarily because they have failed to submit annual tax returns (also known as Form 990s).

The afore-linked 501exempt.com website provides a means of geographically searching the database, and a look at Midland/Odessa organizations on the list yields some interesting results. According to the database, the following are in jeopardy (among about 150 total organizations listed for Midland and about 100 for Odessa):

Midland

  • Permian Basin Chapter of the American Petroleum Institute
  • ARCO Permian Retiree Club (Debbie's and my former employer)
  • Christian Oilmans Association
  • Daughters of the Republic of Texas
  • Greater Midland Football League
  • Historical Society of Midland County
  • Natural Gas Producers Association
  • West Texas Epilepsy Association
  • Just Dance Country Club (we're members of this group)
  • League of United Latin American Citizens (LULAC)
  • Legal Assistants Association of the Permian Basin (a former client)
  • Midland County Young Lawyers Association (another former client; not sure this group is still active)
  • Midland Exxon Club
  • Noah's Ark Animal Rescue & Refuge of Midland
  • Permian Basin Auto Club (yet another former client)
  • Permian Basin Bridal Association
  • Toastmasters International
  • Permian Basin AIDS Coalition
  • Artwalk Midland, Inc.
Odessa

  • American Postal Workers Union
  • National Association of Letter Carriers
  • Fraternal Order of the Eagles
  • Girl Scout Permian Basin Council Trust Fund
  • League of United Latin American Citizens (LULAC)
  • Odessa Petroleum Club
  • Permian Basin Dance Club (I'm not familiar with this one)
  • Permian Basin PC User Group (Windows, of course ;-)
  • Permian Basin Pool Players League
  • West Texas Gem and Mineral Society
  • Permian Basin Citizens for Decency
  • Permian Basin Motorcycle Association, Inc.
  • Toastmasters International
The implications are serious for those organizations and their supporters, should their tax-exempt status be revoked. Charitable deductions for individuals making donations could be disallowed, resulting in additional taxes (and, perhaps, penalties and interest). And the organizations could be required to pay delinquent taxes, which might be a significant burden for many of them, although I also suspect that most generate little to no profit anyway. At the very least, if tax-exempt status is disallowed, the organization will have to jump through some hoops to regain it. The website mentions IRS filing fees of "up to $850."

This situation reinforces the importance of having a competent treasurer, or at least a trusted financial/accounting adviser or provider.

3 Comments

That would seriously suck if all of those places lost their tax exempt status. Especially considering it would be their own fault!

Also new this year, all non-profit orgs (even the smallest among them) were required to file some form of the 990 whereas before, they were not required to file anything. That was the real reason for the big publicity reminder. I'm surprised tho to see some larger orgs on the list...tsk, tsk.

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This page contains a single entry by Eric published on September 14, 2010 8:00 AM.

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