Some Non-Profit Charities May Lose Tax Exemption

By: Demetria McClenton Email
By: Demetria McClenton Email

More than 4,5000 small non-profit charities in Alabama are in danger of losing their tax-exempt status.
“The DAV is here to help veterans who have trouble with their benefits,” said Roy Roberts with the Disabled American Veterans in Ozark.
Without donations from the community, the Veterans in Ozark couldn't exist.
"It would be taking away from the needy veterans in the community and we would not be able to operate since we don't have a lot of money," said Harry Grainger with the Veterans in Ozark.
Keeping the most amount of money within the charity is key.
Which is why they're double-checking their tax forms to ensure they have complied with the new IRS policies after they heard their name was on a list.
In July, the IRS compiled a list of more than 150 pages of charities in Alabama who aren't in compliance.
Since the list was released companies have either dissolved or they have turned in the appropriate forms to become compliant.
"The income they have would be taxable and the donations made by people would not be deductible on those individual tax returns,” said Dan Boone, Media Specialist with the Internal Revenue Service.
The official list is posted at
"I would recommend to people if you're connected with a small non-profit or know of one who may not be aware of the change in the law to please contact the organization," said Boone.
If organizations miss the deadline, they will have to pay a compliance fee.
"If you don't maintain your tax exempt status, you're throwing away 20-25% of the money you could be spending for charitable things," said Fred Griffin.
Congress changed the laws for small non-profits to file Form 990 in 2006.
This allows for full transparency of financial statements for the public.
"We filed our 990...Veterans taking care of veterans is what we're all about," said Grainger.
October 15th is also the deadline for tax payers who filed for extensions
There are more than 138,000 Alabamians who filed for an extension; your deadline is this Friday.

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