Thousands of mostly small nonprofits could disappear

[KamaAina]

thanks an obscure change in the tax code.

http://news.yahoo.com/s/ap/us_charity_deadline

More than 200,000 small nonprofits across the nation are days away from losing their tax-exempt status because they haven't filed a new form with the Internal Revenue Service.

Many of these groups already operate on razor-thin budgets and some worry an unexpected tax bill could force organizations to close....

It's most likely the nonprofits aren't aware of the Monday deadline that only applies to groups that report $25,000 or less in income, excluding churches. Those organizations may not find out until Jan. 1, 2011, when they're notified they have to pay taxes on donations they thought were exempt. And it could be months before their nonprofit status is restored....

The Urban Institute's National Center for Charitable Statistics, which conducts economic and social policy research, estimated Friday that 214,000 nonprofit organizations haven't filed the form as required.

:wtf: And why "excluding churches"?

Also: Most of the grassroots organizations that have sprung up in NOLA and along the Gulf Coast since the Federal Flood likely fall into this category (many have no paid staff and rely on AmeriCorps volunteers).