While Saturday, May 15 promises a new season for anglers itching to get their lines in the water, it presents a wholly different scenario for small non-profit organizations.
May 15 is known as “doomsday” in non-profit circles as many organizations across the country, and quite a few in Woodbury, were left scrambling over the last several weeks to re-file their tax-exempt status for the Internal Revenue Service.
At midnight this Saturday, new groups that haven’t filed a new 990 tax form will lose their tax exempt status. Groups can file for an extension to fill out the form. And they can also fill out the to reapply for nonprofit status for a penalty fee of $750. The Woodbury Community Foundations director Alisa Rabin Bell is hoping it won’t come to that for the 30-plus nonprofit groups listed with Woodbury addresses that were on an IRS list of organizations that have still not filled out the 990 form. She has been notifying the local groups on the list over the last several days about the options they have to reapply or file for an extension.
“It shouldn’t be a big deal for a lot of organizations, but it can be for smaller organizations that don’t use a lot of resources to operate,” Rabin Bell said. “And a $750 penalty does have a significant impact on a lot of small groups.”
The need for nonprofits that operate with less than $25,000 per year to reapply for their tax-exempt status came out of a 2006 federal law that updated the form. The deadline that was established for organizations to re-file their status was set three years, but some groups like the Woodbury Rotary Club, Woodbury Heritage Society and Woodbury United Methodist Church Cemetery Association are some of the local organizations that had yet to file as of early this week.
Rabin Bell said she was able to make contact with many of the local organizations that were coming close to the deadline. The Woodbury Community Foundation had its status updated a while back, but Rabin Bell felt because of the connection the WCF has with other local nonprofit that she was in a position to help some folks who weren’t aware of the deadline.
“We’re trying to let as many know as we can,” she said. “It’s been a little bit of scrambling, but we’re glad we are able to help.”
A list of some of the organizations with Woodbury addresses that had not filed their 990 tax-exempt forms as of April 1, 2010:
- Adolescent Christian Training Services
- Rotary International
- Woodbury Youth Orchestra
- Pi Lambda Theta
- Minneapolis Hockey Officials Association
- Council of Martial Arts Educators
- The Uganda Project
- Twin City Baseball Inc.
- Phylopedia Corporation
- Esthers House Ministries
- Woodbury Heritage Society
- Plast Ukrainian Scouting Organization USA
- Serengeti Children Foundation
- Woodbury United Methodist Cemetery Association