[Lswtalk] Issues found while working on bylaws

[Jessica Hutchings]

Hey everyone, 

I'm glad that we're looking at this issue, because I find it to be very confusing. I have not been filing this postcard. A few years ago when I was a new treasurer, I met with an accountant about how to file taxes. She explained to me that because we take in less than $50K a year, we did not need to file. To the best of my memory, she did not mention that I needed to submit a postcard. She and I did not have a long conversation, and I didn't know enough at the time to ask questions about 501(c)(3) organizations. 

When I became treasurer, I didn't really have any guidelines or instructions. I received a big box of papers, so I did my best to organize everything and move forward. I went through my Libraries Southwest drawer this morning, and I am still not seeing any paperwork related to 501(c)(3) organizations. I did not see anything tax-related, other than some interest statements that we receive annually from our savings account. My drawer of Libraries Southwest stuff goes back to about 1997. It's mostly a mix of LSW Registration and Author Dinner paperwork. 

Thank you for your research, Erin and Beverly. Let me know what you think I need to do next. Yes, our receipts from the last 4 years are less than $10K. I am so sorry that I have not kept up with this properly, and I am looking forward to getting everything straight. 

Thank you, 

Jessica








----- Original Message -----
From: "Erin Chesnutt" <echesnut at beau.org>
To: lswtalk at beau.org
Sent: Tuesday, May 20, 2014 7:10:10 PM
Subject: [Lswtalk] Issues found while working on bylaws

All,
I got in touch with Rob who, among other things, told me that 501c(3)
organizations are required to file an annual information return. Failure
to do so for 3 consecutive years results in immediate revocation of
501(c)(3) status.

I did a little digging based on this and found that our organization would
be required to annually file Form 990-N which is an e-postcard, according
to the IRS's description. More info on that here :
http://www.irs.gov/Charities-&-Non-Profits/Annual-Electronic-Filing-Requirement-for-Small-Exempt-Organizations-Form-990-N-%28e-Postcard%29

I used the Exempt Organization Select Check tool from IRS to see if we are
still listed as a tax-exempt organization; I don't see our name on their
list.  I also don't see our name on the revoked list, but I think that
database only covers the past x years.

Has someone been filing this and I'm just looking in the wrong places?

If our status has, indeed, been revoked, then we seem to be looking at
filing another form and paying a user fee to get reinstated. I believe our
annual gross receipts from the past 4 years falls under $10,000. If so,
the user fee would be $400. If not, it looks like it would be $850.  More
on that here:
http://www.irs.gov/Charities-&-Non-Profits/Reinstatement-of-Tax-Exempt-Status-after-Automatic-Revocation.

It seems to me that if we want to move forward with granting a
scholarship, we need to get this in order sooner rather than later. It
feels hinky (nice word, yes?) to me, otherwise.



Thank you,

Erin N Chesnutt, MLIS
Director
Beauregard Parish Library

337-463-6217
echesnut at beau.org

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-- 
Jessica Hutchings 
Assistant Professor/Head of Reference 
Frazar Memorial Library 
McNeese State University