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What if your organization is revoked?

501(c)(3) Revocation Help

Based on a 2006 law, the IRS automatically revokes the 501(c)(3) tax-exempt status of any nonprofit organization that fails to file IRS information tax returns (990-series returns) for three consecutive years.

What should your organization do if its 501(c)(3) tax exempt status is revoked?

Option 1. Incorporate and obtain a new EIN. One option is to create a new legal entity by incorporating your booster club and obtaining a new EIN for the new corporation. The new corporation can then obtain 501(c)(3) status under PBUSA’s group exemption. (If your organization is already incorporated you may create a new corporation and dissolve the old corporation.)

  • Current members of PBUSA – may pay a $120 upgrade fee to cover PBUSA’s costs of incorporating a new organization and obtaining an EIN for it.
  • New PBUSA members should join at the $495 “Get Legal” level.

Members must also pay the state filing fees to incorporate (and dissolve if needed) their organizations. State incorporation filing fees vary from around $8 - $170.

NOTE: According to the IRS, revoked organizations are not required to file the missed 990-series returns. However, the IRS does expect organizations to comply with filing requirements after revocation. This usually means an organization, once revoked, must file corporate 1120 returns from the date of revocation of tax-exemption until the date that the organization is dissolved or has its tax-exempt status reinstated.

See: https://www.irs.gov/charities-non-profits/automatic-exemption-revocation-for-non-filing-irs-will-not-assess-late-filing-penalties-for-non-filing-years-before-automatic-revocation

Option 2. File IRS Form 1023. To apply to the IRS to reinstate the 501(c)(3) tax-exempt status of your current organization, you must file the complete IRS Form 1023. (You may not maintain or reinstate tax-exemption for the current organization under PBUSA's group exemption.) In addition to the time to complete Form 1023, the IRS filing fee for the form is $850 if your organization’s gross income is $10,000 or more per year; if your gross income averages less than $10,000/year the IRS filing fee is $400.

NOTE: Under a new IRS new streamlined retroactive reinstatement process, organizations are not required to submit the missed IRS Form 990Ns or 990EZs with their reinstatement application. The streamlined process only applies to smaller organizations that qualified to file IRS Form 990N or 990EZ and file for reinstatement within 15 months of the later of their date of revocation or the date the IRS posted their revocation. Larger organizations that failed to file IRS full Form 990 must include the missed returns with their reinstatement Form 1023 application to apply for retroactive reinstatement to the date of the revocation. See IRS Revenue Procedure 2014-11.

More about form 990. IRS Form 990-series returns are due the 15th day of the 5th month following the close of an organization’s fiscal year. One significant benefit of membership in Parent Booster USA is that PBUSA sends several reminders, including at the end of each member’s fiscal year and again in the month the member’s 990 is due. See also IRS Form 990 Help on this website.

It is critically important that members update their contact information so that they receive these and other important notices from PBUSA.

* PBUSA membership as Get Legal, Stay Legal renewal, or Associate Stay Legal includes filing of the IRS Form 990N (e-postcard). An additional fee applies for filing a 990EZ or Full 990. Basic, Basic Renewal and Associate Basic members must file their own 990 return.

FEATURED BLOG

Running an Effective Meeting

Sandra Pfau Englund

Aug 30, 2019

Booster club bylaws often reference Robert’s Rules of Order as the “rules” for managing a meeting. Have you ever read Robert’s Rules? It’s a good way to get a good night’s sleep!

O.k., so, having no rules leads to muddled, oftentimes chaotic meetings. On the other hand, using strict Robert’s Rules of Order can result in confusion or imbalance, dominated by those very few who understand Robert’s Rules. According to Sandra Englund, founder of Parent Booster USA, it’s far better to use a simplified form of parliamentary procedure. Using Sandy’s Simple Parlipro for Nonprofit Organizations, you provide a solid framework for your meeting that encourages everyone to participate and stops any one person from controlling it.

Meetings should not be all about the rules. According to David Gillig, Senior Vice President of Children's Hospital and Health Center in San Diego, a meeting should be 80% inspiration, learning and fun, and 20% business. Busy parents are more likely to attend if they feel as if they will gain something for themselves, and their kids, out of the meeting. We recommend that you start the meeting with something fun or educational — our parent engagement blog talks more about this.

Place reports at the end of the meeting; consider providing digital or written copies of reports that parents can read outside of the meeting. No one wants to sit through standard reports. One exception is financial reports. Always include the treasurer’s report. The treasurer’s report should include a written budget and a report that shows how money was raised and spent. Making bank statements available is a good way to help ensure accountability. You can read more on financial accountability here.

It’s good practice to put start times for each item on the agenda. This helps ensure that the meeting stays on track and flows effectively. It’s particularly important if you are discussing any controversial issues in which it is more likely that someone will filibuster! Having a rule that each person gets an opportunity to speak once, before anyone is given a second opportunity to speak, helps encourage more participation.

Below is a sample agenda to help you get the most out of your booster club meetings. Start your meeting by reviewing the agenda. This is where you can explain the “rules” you’ve set for the meeting, including for example, that you will work to stay on-time to help ensure that the meeting starts and ends accordingly. You can also mention here, or just before the Q&A time with the principal, that each person will be provided the opportunity to speak once before anyone speaks for a second time. The report time is kept brief to allow the bulk of time to be given to the information provided by the principal. Minutes need approved; although a little unusual, we included approving the minutes at the end to allow more time for the more important matters up front.

ABC Booster Club
Agenda
[DATE]
1. Call to order & Review of Agenda 6:00p
2. Guest speaker – Principal Melissa Everly discusses school remodel plan 6:05-6:25p
3. Q&A 6:25-6:35p
4. Financial report 6:35-6:45p
5. Other reports 6:45-6:55p
6. Approve minutes from prior meeting 6:55p
7. Next Meeting 6:59p
8. Adjourn 7:00p

Planning and structuring your meeting for success if the key to having an effective meeting.

YOU SUPPORT THEM, WE SUPPORT YOU

With PBUSA membership, we file all the IRS and state paperwork. We keep your booster club up and running year after year.