All posts by Tony Martignetti

The IRS List Is Out, And You Want to Get Off It

Please Pay Here by stevendepolo from Flickr
The Internal Revenue Service released its list of 275,000 organizations that have lost federal tax-exempt status because they failed to file with the Service for three consecutive years.

The Chronicle of Philanthropy reported it yesterday. The New York Times reports it today.

I’d like to go deeper. What do you do to get tax-exempt status back if you’re listed and still operating?

Start on the IRS website.

Small Organizations
You’ll get preferential treatment if your organization “normally has annual gross receipts of not more than $50,000 in its most recently completed taxable year.” That’s from Notice 2011-43 which will guide you through the reinstatement process. If you fit that criteria, you’re a “small organization” for purposes of reinstating tax-exempt status.

If a small organization submits an application for reinstatement (Form 1023 for 501(c)(3) charities; Form 1024 for others) by December 31 of next year, and meets the criteria on page 3 of Notice 2011-43, IRS will reinstate tax-exempt status retroactive to the date of revocation.

As if that weren’t enough. Small organizations get a substantially reduced fee of $100, down from $850 for others. That’s an 88% discount. Where you gonna find that kind of bargain?

Plus, there are three phone numbers at the bottom of the notice for “further information.” I wonder how many calls Ms. Rosenbaum and Messrs. Quesenberry and Giuliano will get this week. (It’s nice to see an italian in the bunch.)

Be sure to write “Notice 2011-43” on top of your application and on your envelope.

Non-small Organizations
Your guidance is in Notice 2011-44 and the news isn’t as good as the small folks’.

You submit Form 1023 or 1024, but the standard for award of retroactive reinstatement is more stringent. It includes “a detailed description of all the facts and circumstances that led to each failure and the continuous failure [to file annually], the discovery of the failures, and the steps taken to avoid or mitigate the failures” along with evidence to substantiate.

I love this, too. Government can be burdensome when it puts a mind to it: “. . . showing reasonable cause for failing to file a required return or notice for the first of the three years by the date it was due would be insufficient; an organization also would have to show reasonable cause for not filing that return or notice at any later time during the three-year period, and for not filing required returns or notices for the second and third years . . .” (Notice 2011-44, page 8). Again, that’s the standard for retroactive reinstatement, not for regaining current tax-exempt status.

As if that weren’t enough: you’ll pay the full $850 application fee.

But, you get the same three nice people to call.

This post is not legal advice. Do not construe it as legal advice. Seek the counsel of an attorney. This is my interpretation of IRS methodology without the benefit of technical explanations, court opinions, revenue procedures and other official guidance.

Nonprofit Radio for June 10, 2011: Smart Sales Training Strategies to Kick-Start Your Fundraising


Big Nonprofit Ideas for the Other 95%

You can subscribe on iTunes and listen anytime, anyplace on the device of your choice.

This is a repeat of Episode 14 of Tony Martignetti Nonprofit Radio for October 22, 2010.

Tony’s Guest:

Larry Sharpe, Director of Neo-Sage: Smart Sales Training Strategies to Kick-Start Your Fundraising

The director of Neo-Sage transforms corporate sales lessons into exciting, sensible and easy nonprofit fundraising ideas.”
 
Top Trends. Sound Advice. Lively Conversation.

You’re on the air and on target as I delve into the big issues facing your nonprofit—and your career.

If you have big dreams but an average budget, tune in to Tony Martignetti Nonprofit Radio.

I interview the best in the business on every topic from board relations, fundraising, social media and compliance, to technology, accounting, volunteer management, finance, marketing and beyond. Always with you in mind.

When and where: Talking Alternative Radio, Fridays, 1-2PM Eastern

Sign-up for show alerts!

“Like” the show’s Facebook page.

Don’t forget to subscribe to the show’s podcast on iTunes. Download and listen whenever and wherever you want.

Here is a link to the podcast: 010: Sales-Based Fundraising Strategies
View Full Transcript

Live Program on Charity Registration & Risk Management

I’m delivering a workshop on state Charity Registration compliance twice this month, as part of a risk management panel called Donors Are Your Life Blood.

They’re both free and in midtown New York City. You can join us for breakfast on June 15th or lunch on June 30th. The meal is included.

My co-panelists are Kathy Boyle of Chapin Hill Advisors, covering New York’s Prudent Management of Institutional Funds Act, and attorney Andrew Grumet from Edwards, Angell, Palmer & Dodge LLP, talking about investment risks.*

Here’s more information: details and RSVP are in this pdf invitation.

I hope to see you later this month over a muffin or a sandwich.

* They’re both smarter than me. It pays to read the footnotes.

Nonprofit Radio for June 3, 2011: A Conversation with Naomi Levine & Excellent Events That Keep Audiences Awake

Big Nonprofit Ideas for the Other 95%

You can subscribe on iTunes and listen anytime, anyplace on the device of your choice.

Tony’s Guests:

Tony Martignetti with Mrs. Naomi Levine

My interview with Mrs. Naomi Levine, Executive Director of the George H. Heyman, Jr. Center for Philanthropy and Fundraising at New York University and a special advisor to the president of NYU.

In this interview, Mrs. Levine shares her views on the role and responsibilities of nonprofits and their boards, government oversight of nonprofits and fundraising as a profession.

Recorded last month at my show’s reception at the Helmsley Park Lane Hotel, she is outspoken and entertaining.

Claire Meyerhoff is Editorial Director at The Planned Giving Company.

Claire is a marketing and media specialist. On this show, she turns her expertise to savvy event programming that keeps your audiences excited.


 
Top Trends. Sound Advice. Lively Conversation.

You’re on the air and on target as I delve into the big issues facing your nonprofit—and your career.

If you have big dreams but an average budget, tune in to Tony Martignetti Nonprofit Radio.

I interview the best in the business on every topic from board relations, fundraising, social media and compliance, to technology, accounting, volunteer management, finance, marketing and beyond. Always with you in mind.

When and where: Talking Alternative Radio, Fridays, 1-2PM Eastern

Sign-up for show alerts!

“Like” the show’s Facebook page.

Don’t forget to subscribe to the show’s podcast on iTunes. Download and listen whenever and wherever you want.

Here is a link to the podcast: 044: A Conversation with Naomi Levine & Excellent Events That Keep Audiences Awake.
View Full Transcript

I’m Giving Away Two iPads!

Image of the Apple iPad (first generation)

Update: Congratulations to our winners: Sean McCooe and Laverne Berry. Please email me at tony at tonymartignetti dot com. You have 30 days to claim it, or we’ll have a new drawing for any unclaimed iPad.


To promote Tony Martignetti Nonprofit Radio, I’m hosting an iPad giveaway for fans of the show.

The drawing will be on Friday, June 10th at Fund Raising Day, organized by the New York City chapter of the Association of Fundraising Professionals (AFP). The conference is at the Marriott Marquis in Times Square. We’ll be set up on the exhibit floor in booth 115 where I’ll be interviewing conference speakers for later broadcast on my show.

The contest for iPad* One is closed.

You had to be a fan of my show’s Facebook page before May 23rd. Fans didn’t know they’d be eligible to win because I wanted to reward those who “Liked” the show in its first 10 months. I’m grateful for your early support. Congratulations if you’re in this drawing!

Eligibility for iPad* Two is wide open. To be entered in this drawing all you have to do is:

Like the Tony Martignetti Nonprofit Radio page on Facebook.

You can do this on the page or via text.  Send a text to 32665 and type in “like tonymartignettinonprofitradio”.

Both drawings will be at booth 115 at 3:30.

I’m having fun, and I hope you are too! Good luck and please share this!


* Both are iPads with Wi-Fi 16GB (first generation).