Saturday, November 29, 2025

501C Status Removals 11-29-25

The exact number of 501(c) nonprofits that had their status removed in 2025 is not yet available, as the IRS has not released official statistics for the year. However, thousands of organizations likely lost their status, as it is common for nonprofits to fail each year, and the IRS automatically revokes the tax-exempt status of organizations that fail to file required returns for three consecutive years.  

Annual attrition: Many nonprofits fail each year due to various issues, with some sources indicating that up to 50% fail within their first 12 months.

Automatic revocation: The IRS automatically revokes tax-exempt status for organizations that fail to file their required tax returns for three years in a row.

Data limitations: Specific, comprehensive statistics on status revocations for 2025 are not yet compiled or released by the IRS or other organizations. You may need to check official IRS sources or nonprofit industry reports for future updates. 

The exact number of 501(c) nonprofits whose status has been removed in 2025 is not a single, publicly aggregated figure, as revocations are an ongoing process, primarily due to failure to file required tax returns for three consecutive years. The IRS updates the Tax Exempt Organization Search database monthly with organizations whose status has been automatically revoked. 

How Revocations Occur

Automatic Revocation: The most common reason for the removal of tax-exempt status is the failure to file an annual Form 990-series return (or e-Postcard Form 990-N) for three consecutive years. The revocation is effective on the original filing due date of the third missed return.

Other Reasons: Status can also be revoked for other reasons, such as private inurement or engaging in prohibited political activity, though these are much less common and require an individual IRS audit process.

Political Pressure: While there have been political calls in 2025 to revoke the status of certain high-profile organizations (such as Harvard University), the IRS must follow established legal procedures for revocation, and executive orders cannot revoke status without due process. 

How to Check an Organization's Status

Because revocations happen continuously, the number changes daily. To determine the status of any specific organization, you can use the official IRS tools: 

Tax Exempt Organization Search (TEOS): This online tool allows you to search for organizations by name or Employer Identification Number (EIN). It includes a specific Auto-Revocation List database for organizations that have lost their status for non-filing.

Internal Revenue Bulletins (IRB): Official notices of 501(c)(3) revocations (those not due to automatic non-filing) are published in the IRB. You can use the search function with the relevant announcement number to find the official notice. 

For general statistics, organizations like the Urban Institute analyze IRS data in retrospect, but real-time, aggregate numbers for 2025 are not immediately available as a single published report.

https://www.google.com/search?q=how+many+501c+nonprofits+have+had+their+status+removed+in+2025

Norb Leahy, Dunwoody GA Tea Party Leader

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