A Quarter-Million Nonprofits Lost Tax-Exempt Status Last Year

by Categorized: Data, Non-profits Date:

The IRS, long criticized for its oversight of the nation’s million-plus charities, followed through on a Congressional mandate last year and decertified more than a quarter-million nonprofits that had failed to file documents with the tax agency for three consecutive years, the Chronicle of Philanthropy reports.

Even with the purge, there are still 1.6 million nonprofits recognized by the IRS, including nearly 1.1 million 501(c)(3) charities – the type of nonprofit people most frequently interact with. There are still twice as many nonprofits in the nation as there were 20 years ago. And while the number of groups seeking tax-exempt status has slowed with the recession in recent years, applications still pour into the IRS at the rate of one every 10 minutes.

Connecticut has about 12,000 registered nonprofits, according to IRS data.

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