Charities and organizations in Miss. to loose tax exempt status - MSNewsNow.com - Jackson, MS

Charities and organizations in Miss. to loose tax exempt status

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JACKSON, MS (Mississippi News Now) -

If you're looking to give to a tax exempt charity or organization in Mississippi, you may want to take a second look before giving. That's because more than 2,000 of them are loosing their tax-exempt status.

"That means that they have not filed their tax returns basically and that is a very good indicator that the rest of their business practices are not good," said Secretary of State Delbert Hosemann.

2,300 non-profit charities and organizations in the Magnolia State failed to file their required yearly financial reports for three years in a row. Most are linked to religious, fraternal and veterans organizations.

Hosemann says some are just no longer in existence and his office will be going through the list.

"Through the first 400, we have only found four that have actually registered to solicit for contributions here," said Hosemann.

"Loosing tax-exempt status doesn't mean the charity can no longer operate. It just can't receive tax-deductible contributions. Also, it's income becomes taxable.

Hosemann says there are ways for those charities and organizations in question to regain their tax-exempt status and folks can still give to their chosen charity, tax-exempt or not, but adds it's important to know it's status.

"They are able to solicit contribution in Mississippi but you can't get an IRS or a state of Mississippi deduction for that. Dollars are tough and contributions are really important and we want to make sure they go the right charity and are spent for the right charity," said Hosemann.

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