How to Avoid Losing Nonprofit Tax-Exempt Status

An attractive feature of nonprofit organizations is tax exemption. However, the IRS may revoke an organization’s tax-exempt status if it engages in restricted or prohibited activities or fails to comply with tax filing requirements. The nonprofit organization should implement appropriate governance and oversight procedures, which will make it easier to monitor the organization’s compliance and maintain its tax-exempt status. This guide covers how to avoid losing your tax-exempt status.