IRS Nonprofit Tax Exemption Application Scandal

In the wake of a growing scandal within the IRS a quote from Thomas Jefferson comes to mind:

“All tyranny needs to gain a foothold is for people of good conscience to remain silent.”
― Thomas Jefferson

At OrgSpring, we’ve taken the time to write our Congressman and Senators, encouraging them to get more involved in determining the parties responsible for the breakdown, and to hold those parties accountable for their actions. You can see one such letter to Congressman Tim Murphy published here in The Alamanac, a local Pittsburgh publication.

But, more importantly, we’re working with our representatives to make sure changes to the exempt application process do not further disadvantage organizations that might wish to apply for exemption in the future. A one to two year waiting period for exempt status is simply not acceptable.

Current research, such as the research report title “Applications for 501(c)(3) Tax-Exempt Status Declining: Recession or Rule Change” by Amy S. Blackwood and Katie L. Roger (Urban Institute – January 2013) , shows that neither rule changes or the recession are the cause for the serious delay in application approvals,  despite what IRS representatives are currently claiming.

The delay is, in our opinion, a direct result of mismanagement in the EO office at the IRS, and a fundamental flaw in the appointment process for the IRS in general. The top brass in the EO department should not be made up of financial executives or career politicians, as it has been in the past, but engineers or quality assurance managers.

The tax exempt process is a simple one to understand and to follow, and even with current IRS EO review staff, these applications should take just a few weeks to approve, not a few years.

In a previous post here, we’ve shown you the official IRS document explaining the nonprofit exemption process, and then we break it down for you. But don’t take our word for it, judge for yourself, and let us know your thoughts in a comment.

If you are outraged by scandal within our government, or the general apathy of agency representatives, or worse… the feeling that nothing ever gets done with scandals or that the corrupt parties are rarely brought to justice…then we urge you not to stay silent!

 

 

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Craig Grella

Founder and Executive Director at OrgSpring
Craig is the founder and executive director or OrgSpring, a nonprofit dedicated to helping other nonprofits achieve their missions online. Through tips and tutorials, Craig's goal is show nonprofits how to use technology to become more efficient, grow their list of supporters, and increase online donations.