Ka Wai Ola - Office of Hawaiian Affairs, Volume 27, Number 10, 1 October 2010 — OHA funds tax-relief workshops for small Hawaiian nonprofits [ARTICLE]

OHA funds tax-relief workshops for small Hawaiian nonprofits

By Francine Murray KaWai Ola The Office of Hawaiian Affairs recently sponsored free tax-compliance workshops to help small Hawaiian organizations qualify for a one-time tax-relief program needed to maintain their tax-exempt status. OHA provided a $24,500 grant to Native Nations Education Foundation to conduct workshops on Hawai'i Island,

O'ahu and Maui in order to help with changes in IRS tax laws affecting small nonprofits. "OHA is glad it is able to help keep these organizations working and functional in the community so our beneficiaries ean benefit from

their services," said Clyde Nāmu'o, OHA's Chief Executive Officer. "Without these nonprofit groups, there will be a void that would adversely impact our community." The IRS recently announced that Oct. 15 will be the hnal day for small charities to take advantage of the tax-relief program before losing their tax-exempt status. Organizations that do not comply by the deadline will automatically have their tax exemption revoked. Groups may see if they are "at-risk for revocation" and learn about this one-time filing relief opportunity at www.irs.

gov/thelist. "This is a serious situation, we don't want any Hawaiian organizations to lose their tax exemptions," said Trisha Kehau Watson, President of Honua Consulting, whieh partnered with Native

Nations Education Foundation to offer the workshops, whieh concluded Oct. 4. "There are many organizations that are critical to our community that are 'at-risk for revocation,' including civic clubs, eanoe clubs, educational groups, scholarship funds, Hawaiian homestead associations, hula hālau, alumni groups and more." The Pension Protection Act of 2006 affected many small nonprofits and charities that were never before required to file tax returns, mandating that they file returns annually starting in 2007. According to the IRS, there are more than 1,700 small nonprofit organizations in Hawai'i with an annual revenue of less than $25,000 at risk of losing their tax-exempt status. This year the IRS is offering a one-time break for those groups so that they ean eome back into eomplianee and keep their tax-exempt status, even if they failed to file for three consecutive years. "We are doing everything we ean to help organizations comply with the law and keep their valuable tax exemption," IRS Commissioner Doug Shulman said in a press release. "So if you do not have your filings up to date, now is the time to take aehon and get back on track." For the smallest organizations, form 990-N may be filed online by simply filling in eight items and submitting the electronic form by Oct. 15. ■

Questions? Nowthatthe OHAsponsored workshops have concluded, you ean get yourtax-relief questions answered or request an information packet by ealling Native Nations Education Foundation at 554-6685. Deadlineto file is Oct. 15. www.irs.gov/thelist