One of every 4 non profits in California are at risk of termination-be careful with your holiday giving!

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 2, 2010 -- Newport Beach, CA. Starting and running a non-profit organization has never been easy, but now it is more difficult than ever before. As of October 15, 2010 there were 35,354 not-for-profit organizations in California that have not complied with IRS guidelines and are at risk of sanctions. That list runs almost 1200 pages and affects over 22% of all organizations. So what is causing this?

It is because of a form called the IRS 990 which can be a hefty 12 pages long, or as short as four pages with the 990-EZ, which is for non-profits generating income between $25,000 and $500,000. The biggest reason for the huge number of organizations at risk is that starting in 2010 all non-profits must file a 990- even if they made zero money. The 990-N, also called the ePostcard, applies to those making less than $25,000 and is only 8 questions long, but failure to return one can jeopardize the tax deductibility of the organization.

“As of 2008 there were almost 160,000 non-profits in the State of California” says Norm Bour, consultant with Non-Profit Compliance Specialists ,“and the biggest problem is that most of them were formed from passions- not business acumen. If that number still holds true, many of them will not be eligible to grant tax deductions if they do not stay within guidelines.”

The problem is that in many cases the Board or Executive Directors of the non-profits don’t know what they don’t know. Almost 23% of the collective 160,000 non-profits are religion-based organizations and many are in jeopardy; parishioners may get an unwelcome surprise and find that their Sunday contributions are no longer tax-free. That group is the largest followed by Education, Arts, and Culture making up the next largest groups.

So be careful next time you give your charitable holiday offering. It would be prudent to ask if they have complied with the regulations and your contribution truly is tax deductible.

For information, questions or details of this non-compliance issue please contact Non-Compliance Specialists.

About Non-Profit Compliance Specialists (NPCS)

NPCS is the brainchild of Gitonga Kanampiu, an expert on compliance issues with non-profit organizations. For the past several decades he has worked as a CFO with such organizations and as a grant writer, including authoring a $40,000,000 grant which took almost one year to complete. He is proud to state that he has never had a grant declined.

Now in his mid-fifties, Gitonga decided it was time to unleash the entrepreneur that was inside him. Born in the bush of Kenya, born on a date that is unknown, he became educated on his own efforts, became a CPA and completed his Masters degree.

Contact:
Norm Bour
949-495-6162
Partner, OPIS Network
Consultant, NPCS

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