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Association sector continues to grow but IRS may be tightening standards

High percentage of negative rulings noted; some groups operate without approval. Trade associations continue to grow in number, but the Internal Revenue Service seems to be more discriminating about which ones qualify for tax-exempt status. Separately, experts say some organizations are abusing the system, whether they are for-profit groups filing as tax-exempt or simply mimicking names, characteristics and functions of nonprofits. Thousands of others qualify as tax-exempt and file tax returns accordingly but simply haven’t applied for IRS recognition. There were more than 92,000 501(c)(6) nonprofits last year, according to the IRS—up more than 4,000 in the past four… Read More