Some at-risk non-profits no longer exist
Not filing returns for 3 consecutive years results in loss of exempt status

BY MARCELLE HANEMANN
The Daily News
Published/Last Modified on Sunday, August 22, 2010 1:08 AM CDT


At least some of the nearly 40 small non-profit Washington Parish agencies listed by the IRS as at-risk of losing their tax exempt status if they don’t file returns by Oct. 15 are no longer in existence. Others remain intact, but in different forms.

An investigation into a sampling of the groups uncovered a variety of reasons the agencies ended up on the list, which was recently announced by the IRS.

A state law went into effect in 2007 that requires all tax-exempt organizations, except churches and church-related groups, to file annual returns. Those that do not for three consecutive years automatically lose their federal tax-exempt status.

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Since the end of the first three-year period is now at hand, the IRS is offering a grace period. But the listed agencies must file by this October. That is, if they are still in existence and need the exemptions.

One of the most notable on the Washington Parish list was the United Way of Washington Area, an agency that funds numerous other local groups.

Director April Bruns said there is no need to fear.

“We merged with Greater New Orleans last year,” she said. “Now we’re under their 501©3. We are now ‘United Way for Greater New Orleans Serving Washington Parish.’”

Bruns said “a lot of smaller agencies are merging” because they can’t afford to continue independently.

While some have combined or found a spot under a different umbrella, others have simply discontinued.

A Nevers Electrical non-profit trust set up to receive reimbursement for an employee pension, health and welfare program has been non-operational for years and doesn’t need the exemption, according to Ben Nevers. In fact, Nevers Electrical no longer even functions as such, he said. The official name of the company was reportedly changed to NECO about a decade ago.

On a purely entertainment none, the Mill Town Players, Bogalusa’s community theatre group, has reportedly also been out of commission for more than a decade. And the listed Franklinton Community Theater is just getting back in business after a short lull in operations.

FCT President Rod Sabistan said his group is “still the same” and is aware of the need to “fill out a form or two.”

Fans and patrons have no reason for concern.

“We’re going to do it,” he said.

Comments

    Would like to know wrote on Aug 24, 2010 10:48 AM:

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