Many non-profit organizations have lost their Federal tax-exempt status by failing to file Form 990-N for consecutive reporting periods. Since May of 2007, tax exempt entities with gross receipts under $25,000 are required to file Form 990-N online. This is sometime referred to as the e-Postcard. See the IRS article at http://www.irs.gov/charities/article/0,,id=169250,00.html.

Why is this so important? Your tax exempt status is important for multiple reasons. Donations may not be tax deductible if your status is not currently tax exempt. Your organization should be charged tax for goods and services purchased. As your organization approaches the giving season and plans for activities in 2011, now is the time to get your status in order. The turnaround time may be time consuming and there are likely fees involved with the reinstatement process. The IRS article describing the one-time filing relief program on the fees is at http://www.irs.gov/charities/charitable/article/0,,id=225976,00.html.

Digital Planet is able to work with your non-profit organization to avoid these types of miscues. We are able to track the various filing deadlines and provide other finance, human resource and technology services to you throughout the year. Visit our web site at http://www.digitalplanetinc.com/services.aspx