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501 c 3 taxes - not filed in years

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  • 501 c 3 taxes - not filed in years

    First a little background info: My mother was a volunteer for a 501 c 3 group, and stepped in as president after the group had talked about disbanding. The problem was, my mother was the only one who decided to keep the group going (the group had no money left). My mother continued running the group's operations on her own money and put my name down as the Treasurer, telling me she couldn't have her name on documents as the Treasurer and the President. I agreed. However, I've come to realize that my mother has not filed any taxes for this organization and I'm wondering what kind of trouble that puts me in because I am technically the Treasurer. I believe she has not filed any taxes for this organization for the past 6 or 7 years. I've helped her with some accounting (organizing receipts), but I know she hasn't kept receipts for everything because she was using her own money- which I assume she wrote off as a donation. Also, I know her business license has expired and I'm sure her non-profit status has expired. I don't the first thing about fixing this, please help! Any advice is appreciated!

  • #2
    Originally posted by ILS4 View Post
    First a little background info: My mother was a volunteer for a 501 c 3 group, and stepped in as president after the group had talked about disbanding. The problem was, my mother was the only one who decided to keep the group going (the group had no money left). My mother continued running the group's operations on her own money and put my name down as the Treasurer, telling me she couldn't have her name on documents as the Treasurer and the President. I agreed. However, I've come to realize that my mother has not filed any taxes for this organization and I'm wondering what kind of trouble that puts me in because I am technically the Treasurer. I believe she has not filed any taxes for this organization for the past 6 or 7 years. I've helped her with some accounting (organizing receipts), but I know she hasn't kept receipts for everything because she was using her own money- which I assume she wrote off as a donation. Also, I know her business license has expired and I'm sure her non-profit status has expired. I don't the first thing about fixing this, please help! Any advice is appreciated!
    What kind of charitable activity is actually being done? How much money is being written off by your mother as charitable donations to the organization?
    Is the organization accepting any donations from any other sources?

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    • #3
      She runs a no-kill animal rescue. Its small, less than 10 animals at any given time. The only money brought in has been adoption fees she has been charging- which covers the cost of the spay/neuter and vaccinations. Any veterinary expenses above that (if an animal became ill) she pays for. She pays for the pet food, cat litter, and other such supplies out of her own pocket. In the past she has had me sign a letter for her saying she donated x amount (She only keeps a fraction of her receipts but we will add up the receipts she has kept and I write her a letter verifying that she donated that amount because it would look odd for her to sign her own letter). Last year it was for $1,515. I'm not sure about this year because she hasn't asked me to write any kind of letter yet and hasn't given me any receipts. Once in a while she will receive a donation from someone surrendering an animal to us, but I can tell you that we have not received any donations this year.

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      • #4
        Originally posted by ILS4 View Post
        She runs a no-kill animal rescue. Its small, less than 10 animals at any given time. The only money brought in has been adoption fees she has been charging- which covers the cost of the spay/neuter and vaccinations. Any veterinary expenses above that (if an animal became ill) she pays for. She pays for the pet food, cat litter, and other such supplies out of her own pocket. In the past she has had me sign a letter for her saying she donated x amount (She only keeps a fraction of her receipts but we will add up the receipts she has kept and I write her a letter verifying that she donated that amount because it would look odd for her to sign her own letter). Last year it was for $1,515. I'm not sure about this year because she hasn't asked me to write any kind of letter yet and hasn't given me any receipts. Once in a while she will receive a donation from someone surrendering an animal to us, but I can tell you that we have not received any donations this year.
        This is a problematic situation. If I were in your shoes I would be resigning as treasurer until your mom gets her 501(c)3 status restored and starts making sure that the 990's are filed.

        With an operation as small as hers 990s can now be filed online and are incredibly simple.

        I certainly wouldn't be providing any more donation letters.

        Comment

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