Missouri Nonprofit Cooperating In Federal Probe

A Missouri nonprofit that accrued more than $80 million in net income and over $180 million in annual revenues could possibly lose its tax-exempt status and access to government funds that make up the bulk of its charitable war chest, according to details of the federal probe that has entrapped several Arkansas lawmakers in a bribery and embezzlement scheme.

Although Internal Revenue Service (IRS) officials would not speak specifically about ongoing investigations, an agency spokesman did point Talk Business & Politics Tuesday (June 12) to federal regulations that prevent so-called 501(c)3 nonprofits and charities from engaging in certain activities that could endanger their tax-exempt status.

For example, IRS rules specifically state that no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation, commonly known as lobbying. “A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status,” the IRS rule states.   MORE

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