Imperial Beach Organizations Lose Nonprofit Status

On June 9, a total 16 organizations that operate in Imperial Beach had their nonprofit status revoked by the Internal Revenue Service.

That means these organizations no longer qualify to receive tax-deductible contributions under Code section 170.

In order to be considered a nonprofit, no money collected by the organization may be given "to any private shareholder or individual." They are also not allowed to try and influence any legislation or participate in political activity endorsing or opposing a candidate.

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Donations made prior to charitable organizations having their tax-free status revoked will still be honored.

The Pension Protection Act of 2006 required most tax-exempt organizations to file an annual information return or notice with the IRS. Organizations who don't file for three consecutive years had their status automatically revoked. Some may no longer exist.

"We realize there may be some legitimate organizations, especially very small ones, that were unaware of their new filing requirement," said IRS Commissioner Doug Shulman.

"We are taking additional steps for these groups to maintain their tax-exempt status without jeopardizing their operations or harming their donors."

Organizations who wish to have their status reinstated must complete an application form and pay a fee.