It seems the beginning of the end for Not-for-Profits may be starting. The IRS has started to scrutinize Not-for-Profit (NFP) reporting and then revoked thousands of NFP statuses.
Then you have California reviewing what a NFP does for the residents of the state; to decide if they do enough for the residents of the state to remain an NFP. This of course is based upon criteria that they create. Hawaii failed it its initial attempt to tax NFP’s last year. Boston is looking at charging a discounted property tax in Taxachusetts. Chicago is also looking attempting to hit NFP for fees for water and sewer. NFP’s are a prime target for politicians that are looking for more and more money.
This is at a time when funding for most NFP is drying up. Personal giving is down, as well as corporate giving; governmental funding is down and under further pressure to reduce funding for those less fortunate.