tag:blogger.com,1999:blog-25220098.post2013356661795992932..comments2023-10-02T09:09:12.963-07:00Comments on NonprofitEye: TAX-EXEMPTION IS IN THE EYE OF THE BEHOLDERP. Ashlundhttp://www.blogger.com/profile/08849994782572188510noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-25220098.post-78103100243462651132006-11-30T12:17:00.000-08:002006-11-30T12:17:00.000-08:00I don't need to go to the IRS web site to point ou...I don't need to go to the IRS web site to point out that for the IRS there would never be any other life arc. A not for profit organization is by definition an entity that exists by virtue of the grace of the IRS. No matter what else the organization may do, the tax-exempt status we define ourselves by is ONLY a reflection of IRS Code designation, for which we not only must apply but must continue to qualify for. The fact that the tax code section (503c) has some 25 subsections to describe tax-exempt organizations, only one of which may pass along its exemption to its donors is quite telling. The c(3) designation is tied specifically to charitible activities, and many things we have assumed would be designated as c(3) in a prior era would be unlikely to get through the application procvess today.<br /><br />But to return to the original point, until somewhat recently the IRS really only had death penalty options (that is to say complete status revocation) for dealing with inappropriate not-for-profit organizations. There are actually intermediate sanctions now available to the IRS for what are manifestly egregious acts, but often the organizational cost might as well be revocation as the fines are very stiff. Nonetheless, just as we are NOT precluded from operating with the same mission and activities with other than a (c)3 designation, we would be foolish to think that the organizational development perspective is TECHNICALLY related in any way whatsoever to that tax-exempt status. We might well be far better at doing our job if we kept in mind on a daily basis that before we make decisions we ask whether or not they would pass muster with the present IRS narrow vision. If we find that we are frequently uncertain, then we must ask if we ought to use those non-IRS self-evaluation standards to either honestly give-up our (c)3 pretentions, or seriously rethink what we are doing.Nonprofit Pundithttps://www.blogger.com/profile/02091571125550822079noreply@blogger.com