MainStreetnon-profitstatus revoked - Cibola Beacon: News

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MainStreetnon-profitstatus revoked


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Posted: Tuesday, July 12, 2011 12:00 am

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.

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Welcome to the discussion.


  • anonymous1 posted at 1:15 pm on Tue, Jul 19, 2011.

    anonymous1 Posts: 0

    What has this organization accomplishedanyway. Is seems all they do is put on the bike rally. The bike rally was intended to raise money for the MainStreet Asc. to be able to fund Mains Street projects. Have they made any money and what projects have they funded. That should be the question and the story that CCB should persue.

  • anonymous1 posted at 7:27 pm on Thu, Jul 14, 2011.

    anonymous1 Posts: 0

    It is always easy to say replace them all until you have walked in their shoes. The media is not always the best representation of what is going on and should not be taken as the whole truth or even fact in many cases.Anyone who has been in Grants any length of time can attest to that.

  • anonymous1 posted at 6:28 pm on Thu, Jul 14, 2011.

    anonymous1 Posts: 0

    New to Grants, voice your opinion loud!! I am tired of this "good ol boy" attitude that we do what we want cause this is our town. I have lived here all my life and I WELCOME OPINION FROM ANYONE who makes Grants their home. Sends their kids to our school shops in our stores and is part of our community. As for you "Old Grants", we dont do the best we can. We do what satifies those who have power and money. Thanks new to grants, we need opinion from those who have an outside perspective.

  • anonymous1 posted at 3:36 pm on Tue, Jul 12, 2011.

    anonymous1 Posts: 0

    The IRS is offering transitional relief for small revoked groups. It's one of the best deals I've seen in my four decades of professional involvement with non-profit taxes. If you can honestly say there is still a need for your non-profit, and you feel you can muster the human and other resources needed to sustain it, don't pass up this opportunity to regain your tax exempt status. There are no shortcuts. You will have to fill out a new exemption application and pay an IRS User Fee. But for organizations with annual gross receipts normally less than $50,000, the User Fee will be reduced to only $100 and reinstatement will be retroactive. The offer is only good through December 31, 2012. You can find the details in IRS Notice 2011-43.

  • anonymous1 posted at 1:15 pm on Tue, Jul 12, 2011.

    anonymous1 Posts: 0

    I find it rather interesting that "Stil new to town" can judge so quickly. Live here 20 yrs and then complain. I know the town is not perfect.. but we do the best we can to be a decent community!

  • anonymous1 posted at 10:02 am on Tue, Jul 12, 2011.

    anonymous1 Posts: 0

    I have only been in Grants for about 3 years and have had opportunity to meet the Main St. Board (individually and in small groups). It is amazing that this group gets anything accomplished. It comes as no suprise that they were unaware of how to keep their tax exempt status. Only way to fix this issue is to replace the entire board and the current Mainstreet staff. I Thank the media for keeping the public informed on this issue and I hope they do not bend to the political pressure that will follow and keep the pressure on Mainstreet as I am sure there are other "mistakes" that have not been brought to light.

  • anonymous1 posted at 1:30 pm on Mon, Jul 11, 2011.

    anonymous1 Posts: 0

    Awww fighting amongst themselves what a pity. Wasn't there something in the Gallup Independent a few years back about representatives from the Grants MainStreet organization not filing the appropriate paper work with the state in a timely manner?


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