A bunch (like, 275,000 nationally) nonprofits recently lost their tax exemption status. Yes, some can get it back. Their boards will certainly have to change their future behavior and comply with IRS filing rules.
But, not filing in a timely and complete manner is not the only way to lose tax exempt status. Check-out the editorial in the Washington Post that offers three other methods to lose exempt status.
I would caution that the third method, referred commonly as UBIT, really takes effort on the part of a nonprofit to generate enough unrelated business income through some revenue-generating activity to face the risk of losing tax-exempt status. This does not make this means invalid, just unlikely.
Either way, the writer (who I think were basically promoting their legal services) was absolutely correct in their summary:
It is the duty of every officer, director, board member and employee of a nonprofit to be aware of any filing requirements and prohibited activities that could result in the loss of the organization’s tax-exempt status, and to insure that the organization is in full compliance with those requirements at all times.
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