The idea is that if an organization implements careful record keeping, files its returns on time and behaves ethically, one can assume it will maintain its tax-exempt status. But slipups that can put a charity in jeopardy of losing this status do happen.
This paper outlines:
- Avoiding the loss the tax-exempt status
- Intermediate sanctions
- Revocation of tax-exempt status
- Retroactive reinstatement process
Read the first 2 papers in this series about Creating a Tax-Exempt Organization and Staying Tax-Exempt.