Saturday, June 11, 2011

Local charities lose tax-exempt status

On Thursday, the Internal Revenue Service posted a list has 275,000 non-profit groups whose tax-exempt status has been revoked for failing to file required reports (IRS Form 990) for three consecutive years. Through my involvement with a number of non-profit groups, I know IRS has been sending repeated warnings about the consequences of non-compliance with reporting requirements.

In Rhode Island, the “death toll” was 1,031, including around two dozen in and around Charlestown. Click here for the RI list in pdf format; click here for Excel format.

Most of the groups punished by IRS no longer operate. For example, “Caroling Angels,” a Charlestown non-profit, has just now lost its federal tax-exempt status, but had its corporate charter revoked by the RI Secretary of State in 1994.

But other groups on the local list may still be active. Two examples are active non-profits run by the Angell family in Shannock: the Brandon Angell Memorial Fund (headed by Donna Angell) and the Shannock Memorial Hall Association (headed by Frank Angell).

Donations made to non-profits who have had their tax-exempt status revoked are no longer deductible. Active non-profits can get reinstated retroactively by complying with reporting requirements and paying a sliding scale fee of up to $850. Non-profit groups who lose their tax-exempt status may also find themselves liable for state corporate taxes.

Other local non-profits with revoked tax-exempt status:

  • Chariho Cowboys (a.k.a. Pop Warner Little Scholars) in Richmond
  • Chariho Football Boosters (Ashaway)
  • Bradford Volunteer Fire Company
  • Beans for Books (Charlestown) - RI corporate charter revoked Feb 4, 2010
  • Bradford Social Club
  • Bradford Community Group
  • RI Foster Parents Association (Perryville)
  • Washington County Board of Realtors (Westerly)
  • Westerly Housing Association
  • Hopkinton Historical Society
  • Paolo Cavallo Ministries (Westerly)
  • Mary Mother of Jesus Retreat (Westerly)
  • Problem Pregnancy Support Community (Westerly)
  • RI Shoreline Access Association (Peacedale)
  • Richmond Police Association
  • Power Parents Association (Westerly)
  • Agape Healing Center (Westerly)
  • Theatre Workshop Inc. (Westerly)
  • Peter J. Ruisi Jr. Memorial (Westerly)
  • United Arts Center (Westerly)
  • Hopkinton Taxpayers Committee
  • Scottish Heritage Society (Westerly)