Stay Tax Exempt
They recommended looking at a website to stay tax exempt - http://stayexempt.org/
This is a website put together by the IRS and another organization (the name escapes me).
A few key take aways are - you have to file an information return every year now, you can not get involved in any politics, and if you accept advertising (sponsorships are allowed) - you probbably need to pay tax on the advertising you sell (there are exceptions).
If you fail to complete an information return for three years, you will lose your tax exempt status. For organizations for 2007, 2008 and I believe 2009, for the most part, if you have less then $25,000 in revenues and donations, you just need to fill out a simple form with your name and address and tax id number. The threshold will increase in 2010 and there are all sorts of exemptions and exceptions to the rule.
I’d encourage you to seek some professional help from a CPA that works with tax entities. Make sure they work with tax exempt issues regularly because they have changed quite a bit. And I am talking as a licensed CPA. If you don’t work with these issues regularly, they are just too complex to keep straight.
-Jeff
