X.org Foundation, which was reorganized as an LLC back in 2005, failed to submit its tax returns on time following which its non-profit status has been stripped off by the Internal Revenue Service, US.
According to the minutes of meeting of the X.org’s board of directors IRC meet, dated August 22, Stuart Kreitman, the Foundation’s accountant, failed to file returns for the last three years because of which the 501(c)(3) status was lost. “The status of the 501c3 is lost because we (me) failed to file the 3 past years’ tax returns on time”, Kreitman wrote.
The surprising part is that the foundation received its 501(c)(3) status just about a year ago in 2012 and it wasn’t even able to benefit from the status as no major fundraising drives were organized during the time. This is not the first time though when the foundation have had trouble with its finances. Previously, the foundation has lost money because of banking and PayPal related issues and even inaction on the part of the accountant as well as the board.
The board is contemplating on the idea of joining another organization which is already having a 501(c)(3) status – such as the Software Patent Institute (SPI), Apache, etc. Chances are that the foundation will lose some of its autonomy but, the benefit to the foundation would be that it wouldn’t need to take care of extensive paperwork and other overheads.