GRANTS - Grants MainStreet can no longer be referred to as a charitable organization, according to reports gathered by the Internal Revenue Service.
Organizations described in section 501(c)(3) are commonly referred to as charitable organizations.
The IRS recently published a list of organizations that have had their federal tax-exempt status automatically revoked for failing to file an annual information return or notice with the IRS for three consecutive years. And, Grants MainStreet Project is on the list of 275,000 organizations nationwide.
The date of revocation was Nov. 15, 2010, and it was posted June 9, 2011.
Early last week, MainStreet President Delores Vallejos and Vice President Bob Clark were not aware of the revocation. Neither were the two biggest funders – the City of Grants and Cibola County. Now they are all aware.
Vallejos said the organization is working to get the status back by the end of this month. The duty to file reports in a timely fashion to the IRS, seen as a day-to-day operations duty, usually stands on the organization’s director.
The following day City Manager Bob Horacek was questioned about how the revocation affects the city’s relationship with MainStreet, Horacek said, “It is in the best interest of MainStreet to get their 501C3 status back and keep it. It is very unfortunate they lost it.”
On July 8, County Chairman Eddie Michael said, “We expect them to get the 501C3 status back. However, this does not look good on their day-to-day operations.”
According to the IRS, MainStreet must file a Form 990 and pay anywhere from $400 to $850 for reinstatement. MainStreet must also provide a written statement setting forth all of the facts that support its claim for reasonable cause for failing to file a required return or notice in each of the three consecutive years and over the entire consecutive three-year period.
Two weeks ago Grants MainStreet scheduled its annual meeting that is open to the public, however, insufficient notice was given so it was cancelled. The meeting has been rescheduled for July 28, 6:30 p.m. at El Cafecito Restaurant. Four board members will be elected at the meeting.
Current board member Ina Hoffman has decided to step down from her position as an employee and keep her board member seat. Months ago, several board members argued that it was a conflict of interest for Hoffman to be an employee and have a board position. Other board members argued it was not. Nonetheless, three board members resigned for that and other issues they were not comfortable with.
Grants MainStreet this week is hosting the 11th annual Fire and Ice Historic 66 Bike Rally. The event starts on Thursday at 6 p.m. and will go through Sunday at 6 p.m. However, this is the first year MainStreet will not be recognized as a 501C3 status charitable organization during the event, its largest hosted event of the year. MainStreet also hosts other community functions each year’s such as the Christmas Light Parade and Easter Spring Celebration.
For more information about the organization, call 285-3573. According to Clark, Grants MainStreet currently has approximately 25 members.