Spring 2010

AJIE Continues its Coalition Work into Atlanta

Based on a wonderful opportunity to connect two clients (the Global Peace Festival Foundation & the Administration for Children & Families in the Atlanta Region, AJIE has been able to support the expansion of its Strengthening Family Coalition work in that region of the country. During the session that brought leaders together like Carlis Williams, Regional Administrator – Administration for Children & Families; Sen. Emanuel Jones, State Senator – Atlanta; Rev. Paul Murray, Executive Director – Global Peace Foundation; Former Congressman Earl Hilliard – Birmingham, Al. and Jim Flynn, Chairman – GPF-USA, AJIE supported the dialogue that broke new ground on the parties coming into “Coalition.”

Senator Jones who has agreed to serve as the Chairman of the Global Peace Foundation – Atlanta indicated that his primary concerns for that region were school dropout rates and high levels of unemployment. Carlis Williams indicated that her office shared those concerns and see them clearly connected to the challenges around family breakdown that is the focus of her agency.

Carlis suggested that she convene a meeting in her Regional Office that would include the Georgia Department of Human Services, the Georgia Department of Labor, Sen. Jones, GPF leadership and Alan J. Inman Enterprises. This group did gather and decided that working together as a “Coalition” around the agreed upon challenges would have the potential to produce substantial results. An outcome of this meeting was a key service that GPF offered connected with its curriculum on Character Competencies that would fit well with the youth employment programs being rolled out by the Georgia Agencies. All concluded that it would be well worth the effort for the agencies to explore this potential initiative with GPF to determine its adaptability within the agencies work preparedness program.

Overall, AJIE is totally engaged in this new region’s initiative and is excited being involved with this area of the country.

Client Alert: Non-Filing Charities Risk Loss of Tax Exemption

2010 marks the first year in which charities could lose their tax-exempt status due to failure to file their federal tax return (IRS Form 990, 990-PF, 990-EZ or 990-N) for three consecutive years. While private foundations, medium-sized and larger nonprofits have always been required to file a return with the IRS, the annual filing requirement for small nonprofits (currently defined by the IRS as normally having $25,000 or less in gross receipts annually) was instituted by Congress in 2006. This filing, the IRS Form 990-N, is an online form, requires very basic information from nonprofit organizations, and will serve as a means for the IRS to track these entities. For more information on the filing requirements, refer to the IRS website.

Important Note

The requirement applies not only to stand-alone charities but also to the large number of nonprofit “subsidiaries” and other smaller entities related to larger organizations that may be dormant or have minimal activities. Given their lack of activity it may be easy to overlook such organizations. If your organization has such entities within its corporate umbrella, be sure to complete the filing.

Possible Leniency

It was estimated that over 300,000 organizations had not complied with this filing requirement by the deadline and were at risk of losing their exemption.

The IRS has indicated that there may be a remedy for small nonprofits that are in jeopardy of losing their tax-exempt status due to non-compliance. In a statement posted on the IRS website IRS commissioner, Doug Shulman, indicated that the IRS will be offering future guidance to allow these organizations to maintain their tax-exempt status. In the meantime, the commissioner urged affected nonprofits to file the Form 990-N, even if it is late.

For assistance with your organization’s compliance filings or questions related to this matter please contact us at 617-630-6900.

This article was authored by Jeffrey M. Hurwit, founder of Hurwit & Associates. He can be contacted at (617) 630-6900 or jhurwit@hurwitassociates.com for further information on this subject.