A bill sponsored by an Indiana lawmaker would require the Internal Revenue Service to notify nonprofit organizations before revoking their tax-exempt status. U.S. Sen. Dan Coats says the lack of notification creates uncertainties for charities, their donors and the people they serve. Under current federal law, charities and other nonprofits automatically lose their tax-exempt status if they do not file annual information returns for three consecutive years. The returns must be filed, even if the charity receives minimal money. According to Coats, 11,600 charities and nonprofits in Indiana have lost their tax-exempt status since 2010 because of this provision. It was originally enacted to clear defunct nonprofit organizations from the government’s tax rolls. Coats adds many community and faith-based organizations have stepped in to fill voids left by government spending reductions. If they lose their nonprofit status they have to file for tax-exempt status again and run the risk of losing donors while waiting for approval.
Written by Mary Perren
WKVI News Director Mary Perren is glad to be back home in northern Indiana and on the radio. She’s a North Judson native with more than 20 years of news experience. She’s worked in print and radio news in Indianapolis, Hopkinsville, Ky., Nashville, Tenn. and most recently in Winamac before taking over as news director for Kankakee Valley Broadcasting in February of 2013. Her work has been honored by the Associated Press, StateNets News Association, Curb Foundation, Hoosier State Press Association and IBA. When she’s not sitting in the anchor chair or chasing down news, Mary enjoys shopping for antiques, attending concerts and taking long walks and rides in her vintage Saab convertible, weather permitting. She’s also a hopelessly devoted Chicago Cubs fanatic who still cringes at the mention of Steve Garvey and Josh Beckett and maintains it wasn’t Steve Bartman’s fault.