Nonprofit Law Blog: “IRS exempt organizations audit manager Joe Kroll spoke at a program for the Bar Association of San Francisco yesterday and discussed five common ways charitable organizations jeopardize their 501(c)(3) tax-exempt status.
- Private inurement / private benefit.
- Lobbying and political activity.
- Filing requirements. Small 501(c)(3) organizations that have not previously filed Form 990 or Form 990-EZ may be required to electronically file Form 990-N. Failure to file for three consecutive years will result in revocation of exempt status.
- Unrelated business activities.
- Employment issues (particularly the employee-independent contractor-volunteer distinctions).”