Status report

Posted: August 3, 2010 in Bubba posts

The nonprofit landscape is shifting. In May, the IRS began revoking tax-exempt status from nonprofits that failed to file three consecutive annual returns. The first prediction is that as many as 300,000 nonprofits may lose their tax-exempt status, effectively shrinking the nonprofit sector. While many people fear this development I believe it is positive because it will hopefully release passive resources back into the sector. Guide Star just released a report about the revocation process discussing which nonprofits are at risk, what happens to a nonprofit that loses its exemption, and what happens if a donor gives to a charity that has lost its exemption? Also, The Rome Group released the results from its philanthropic landscape survey showing some interesting figures:

  • Only 49% of nonprofits said they met their fundraising goals in 2009.
  • 87% have reduced all unnecessary expenses.
  • 57% have tested new strategies, such as social networking.
  • 49% froze all wages and 43% will operate with smaller staffs.
  • Half (50%) of local nonprofits have three or fewer months of cash available; 9% have no cushion at all.
  • 39% said it is too soon to tell when things will get better, but 41% expect improvement later this year or next.

More about the Group’s findings can be dowloaded here.

Bubba

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