WE AT THE IRS believe that as many as 12,600 small community-based nonprofits in Pennsylvania are in jeopardy of losing their tax-exempt status. This could greatly affect their charitable work and their donors' potential tax deductions.
Among the organizations that could lose tax-exempt status are sports associations and community support groups, volunteer fire and ambulance associations and their auxiliaries, social clubs, educational societies, veterans groups, church-affiliated groups, groups designed to assist those with special needs, and a variety of others.
The organizations at risk failed to file the required returns for 2007, 2008 and 2009, according to IRS records. The requirement to file is the result of a 2006 change in the law. For many of these small organizations, complying with the new law may be as simple as completing a 10-minute form online.