Revoked non-profit list surprises some

Published 6:00 pm Wednesday, July 13, 2011

The Internal Revenue Service (IRS) hasreleased a list of non-profit organizations recently stripped oftax-exempt status, and two Brookhaven groups did not like what theysaw.

    One experienced surprise, the other skepticism.

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    The list, released in June, names non-profits revoked since 2010for failing to comply with certain notification requirements.

    The list indicates that local non-profit the “O” Foundation haslost its tax-exempt status. The “O” Foundation operates youthmentoring programs and presents an annual VIP award.

    “I’m going to go look into this and fix this as soon as I can,”said Rose Powell, founder of the “O” Foundation.

    Powell said she was unaware of recent changes in tax-exemptreporting requirements.

    All non-profit organizations, churches excepted, must file annualnotices with the IRS. Those that fail to file this notice for threeconsecutive years can have their status pulled.

    Prior to 2006, only non-profits with more than $25,000 in annualrevenue were required to file annual notices. The PensionProtection Act of 2006 implemented a number of provisions designedto reform the non-profit sector, including a mandate thatorganizations below the previous revenue mark file notices.

    Powell believed the “O” remained exempt from filing requirementsdue to its revenue levels.

    For members of Brookhaven Beautiful, the organization’s appearanceon the list did not seem correct and merited investigation.

    “We are in good standing with the IRS,” said Pat Lowery, aBrookhaven accountant who handles financial matters for BrookhavenBeautiful, a city beautification minded organization.

    Lowery explained that Brookhaven Beautiful has filed all itsrequired notifications.

    The accountant looked into the matter and discovered that at aprevious time, an organization with a similar name existed. He wasunable to uncover any details about this organization, such as whenit was founded or who was associated with it.

    That previous group – and not the currently active BrookhavenBeautiful – is what sits on the IRS revocation list, Lowerysaid.

    Most other local organizations listed as revoked appeardefunct.

    An Elks lodge appearing on the document is not listed in the Elks’national directory, and no contact information for it can be found.Neither can contact information be located for a number of daycaresand Masonic organizations on the list.

    A Brookhaven Veterans of Foreign Wars (VFW) post on the list seems,like Brookhaven Beautiful, to indicate a duplicateorganization.

    The address given on IRS documents has a misprint but appears to be917 Highway 51. The VFW’s web directory gives the same address forPost 2618.

    But, Post 2618 is located on Industrial Park Rd. where it has beensince the late 1970s, said Post Commander Billy Hughes. The addressat 917 Highway 51 is a private residence.

    “Maybe the post was out on 51, once. It could have been,” Hughessaid. “But I don’t know that it was.”

    Like Lowery, Hughes said Post 2618 has filed all necessarydocuments with the IRS.

    Cleaning the inactive non-profit groups off IRS databases was oneof the goals of the new requirement, a goal that appears to havemet success.

    “Our feeling is that the majority of these organizations areprobably no longer operational,” said Dee Stepter, an IRSspokesperson. “It allows us to weed out those organizations thatare no longer active.”

    In total, 16 non-profits with Brookhaven addresses are on thelist.

    Active organizations whose status was stripped may apply to havetax-exempt status reinstated.

    All 501(c)(3) groups must fill out Form 1023 and pay user fees torequest reinstatement. Small organizations may be eligible for areduced fee.