The exact number of 501(c) organizations removed for specific instances of misconduct in the US in 2025 is not publicly available as the IRS does not typically release real-time, detailed statistics on revocations for cause as they happen. Revocations related to misconduct are rare and often result from in-depth audits and investigations.
The majority of tax-exempt status revocations happen automatically by operation of law when an organization fails to file the required annual tax returns (Form 990-series) for three consecutive years. The IRS reports on these automatic revocations in bulk data on the Tax Exempt Organization Search tool.
Reasons
for Revocation by the IRS
While automatic failure to file is the most common reason for a revocation, the IRS can also revoke an organization's status for "misconduct" or "for cause" violations, which include, but are not limited to:
Private Inurement: This occurs when an "insider" (such as a board member or officer) treats the nonprofit's earnings like a personal bank account.
Political Campaign Intervention: Using organizational resources to endorse or oppose political candidates is a major violation for 501(c)(3) organizations.
Excessive Lobbying: Spending a substantial amount of time and resources attempting to influence legislation can also lead to revocation.
Failure to Meet Operational Test: Not engaging in any charitable activities for several years, as demonstrated in a specific IRS private letter ruling in April 2025.
Illegal Activities: Engaging in activities that are illegal or contrary to public policy can lead to the loss of tax-exempt status.
Organizations facing potential revocation for cause are entitled to an appeals process, which can make the final removal date unpredictable and not suitable for immediate annual reporting. For up-to-date information, the IRS publishes a list of organizations whose 501(c)(3) determinations have been revoked in the Internal Revenue Bulletin (IRB).
While a specific total count of 501(c) organizations removed for misconduct in the U.S. in 2025 is not available, the IRS does provide lists of organizations whose tax-exempt status has been revoked. Revocation can occur for failing to file required annual returns for three consecutive years, not exclusively due to misconduct.
Here are some key actions and points regarding non-profit misconduct and IRS enforcement in 2025:
IRS enforcement: In 2025, the IRS continued to update and enforce compliance with tax-exempt organization rules. The agency publishes monthly updates on its website, including a list of automatically revoked exemptions.
Executive orders: Executive orders and political memos in 2025 influenced how federal agencies, including the IRS, address non-profits. This included directives on investigating grant funds, countering terrorism, and scrutinizing certain tax laws.
Case studies and warnings: Specific instances of misconduct were highlighted, such as the case of Volunteers of America Southwest California, which was dismantled following reports of fraud. In December 2024, some tax-exempt NIL collectives were warned of "smarter enforcement" by the IRS.
Legislation and proposals: In 2025, new legislation and proposals also affected non-profits. The One Big Beautiful Bill Act (OBBBA) revised the excise tax on university endowments and increased IRS funding for oversight. Proposals were also made regarding a bill that would allow the revocation of a non-profit's tax status for alleged ties to "terror," raising concerns about due process.
https://www.google.com/search?q=how+many+501c+organizations+were+removed+for+misconduct+in+us+2025
Norb Leahy, Dunwoody GA Tea Party Leader
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