Keywords

small NPOs, nonprofit compliance, revocation

Abstract

Small nonprofit organizations (NPOs) are at higher risk of having their IRS tax-exempt status revoked due to a lack of funding, governance, and structure. Organizations that fail to file an annual information return or notice for three consecutive years automatically lose their tax-exempt status by revocation. In May 2020, the IRS revoked the status of more than 30,000 NPOs for failing to file tax returns. This research contributes to the very limited number of qualitative studies on nonprofit leaders' knowledge of federal compliance, which is unknown and may contribute to small nonprofits losing their IRS-exempt status. This qualitative study examines the perceptions of nonprofit leaders of small organizations whose IRS tax-exempt status was revoked. A qualitative study was conducted between June 2023 and May 2024. Semi-structured interviews were conducted with purposefully selected ten nonprofit leaders until theoretical data saturation was reached. Inductive thematic analysis was used to identify key themes and develop a conceptual model. This study identified key themes regarding motivations, formation processes, leadership dynamics, and organizational learning that help explain why NPOs are revoked.

The Agency, Governance, Stakeholder, and Public Choice Theory will help us understand how small NPOs are significantly determined by the founders' initial readiness to address administrative, legal, and operational challenges. The leaders, driven by personal experiences and a desire to address community needs, often launched their organizations with passionate commitment but insufficient knowledge of the complex administrative and legal requirements. The findings offer valuable insights into the critical factors influencing nonprofit compliance and provide recommendations for future leaders to mitigate common challenges and reduce revocation.

Completion Date

2024

Semester

Summer

Committee Chair

Thomas Bryer

Degree

Doctor of Philosophy (Ph.D.)

College

College of Community Innovation and Education

Department

Public Affairs

Degree Program

Public Affairs

Format

application/pdf

Identifier

DP0028544

URL

https://purls.library.ucf.edu/go/DP0028544

Language

English

Release Date

8-15-2024

Length of Campus-only Access

None

Access Status

Doctoral Dissertation (Open Access)

Campus Location

UCF Downtown

Accessibility Status

Meets minimum standards for ETDs/HUTs

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