Oak Forest Nonprofits Lose Tax-Exempt Status

It's a tough time for Southland nonprofits. Besides fighting for funds in today's tough economy, nonprofit organizations must keep their paperwork up to date with the IRS, or lose their tax-exempt status.

In Oak Forest, as in towns across Illinois, several organizations recently got delisted by the IRS for failing to file an informational return three years in a row. (See list at end of article)

While some groups are likely defunct, others just don't realize they've lost their status and must refile, said Chicago-based attorney Kathryn M. Vanden Berk, an expert in nonprofit law.

"This year will bring a huge amount of distress, as many legitimate organizations discover they have been revoked," said Vanden Berk.

The Oak Forest Shooters, a men's baseball team affiliated with the South Suburban League, appears to be an active group that has lost their tax exempt status.

Asked what the Shooters, and other active nonprofit groups could do to get back in the IRS' good graces, Vanden Berk did not mince words.

"Earlier, you could have gone to the IRS website and sent an e-postcard, but the time for that has passed," she said. "They'll have to go through the whole process of exempt status all over again, get copies of their articles, bylaws, officers and financial records."

The good news, she said, is that IRS will grant active groups an expedited review.

"They want to get them back on their feet," said Vanden Berk. "But if that ball team wants its exemption back, they can't sit around and moan."

Leaders Offer Insights

The leaders of two successful area nonprofits, Oak Fest and the Pediatric Oncology Treasure Chest Foundation, offered their insights to other nonprofit groups.

Oak Fest Chairman Joe Koce pointed out that running a nonprofit is a nonstop commitment.

"We go year-round to put on a six-day fest, and the preparations take months," said Koce. "We try to keep costs low, but the cost of everything from porta-johns, tents, tables, everything goes up. But I've seen how many people it's actually helped."

Oak Forest resident Colleen M. Kisel, launched a charity to provide toys to children undergoing cancer treatments from her home.

Today, the 15-year-old nonprofit Pediatric Oncology Treasure Chest Foundation ships thousands of toys to children's cancer treatment centers across the country from its Orland Park warehouse, Kisel said.

"We are shipping to cancer treatment centers in the East Coast, West Coast, Florida and Colorado," said Kisel. "We'd love to see the day when we're serving every child and young person in the country."

Kisel started the group after watching her son endure painful 18 spinal taps and nine bone aspirations. "He was scared, I was scared," she recalled. But receiving a toy afterward helped relieve her child's fear the pain and fear, she said.

In the nonprofit's early days, others didn't think her vision of toys for young cancer patients was viable, she said. "People were saying, 'you can't do that.' But when the train is rolling, others jump onboard."

Today, Kisel credits the success of the group to its broad volunteer base, and offers this advice to other nonprofit founders. "Have a good mission, and get good people in your corner that will stand behind what you do."

Here's a list obtained by Patch of Oak Forest nonprofits who recently had their tax-exempt status revoked by the IRS. Patch was unable to reach representatives of these groups at presstime. Therefore, it's unclear whether they need to re-submit their paperwork or have disbanded.

Nonprofits that have lost their tax-exempt status:

Anchor Ministries, Inc, Catholic Engaged Encounter, Community Affliation For Repairs, Dean Blakeney Evangelistic, Dial-A-Story, Ghana Medical Foundation, Hemlock Federal Bank for Savings, Jennie Bear Group, National Special Childrens Fund, Oak Forest Credit Union, Oak Forest Jaycees, Rick Sullivan Foundation, Shooters Baseball Club, and the West Pullman IH Retirees Club.