Now that you have been notified that your status has been revoked, what do I do? There are many advantages to maintaining a 501(c)(3) status and there are numerous reasons why a not-for-profit organization or foundation would find it status revoked. So what does it mean for a not-for-profit organization to lose its status: It means:
• Donations are no longer tax deductible to the donor and you would cease to qualify for or have an ability to obtain grant funding.
• A for-profit corporate tax return will likely need to be done.
• There may be serious (and expensive) consequences at the state level including, but not limited to, sales and property taxes, payroll and unemployment taxes, etc.
This list only scratches the surface of the problems that not-for-profits could potentially face.
Grassroots Consulting, Inc. is here to navigate you through the difficult
process of restoring your 501(c)(3) status.
Please contact me for an appointment today.
Shandra Stringer, President & CEO