Tax Exempt Status

The Foundation lost its 501(c)(3) status in May 2022 and its status as a tax-exempt organization was reinstated retroactively in January 2023. The Portuguese Water Dog Foundation is a 501(c)(3) organization.

IRS Reinstatement Letter

Why did the Foundation lose its 501(c)(3) status?

The Foundation did not file its 990-tax returns in a timely manner. By default, if a nonprofit organization doesn’t file for three consecutive years, its 501(c)(3) status is automatically revoked by the IRS.

Why were the tax returns not filed?

Fundamentally, there was a lack of oversight by The Board to make sure that the tax returns were filed in a timely manner. Steps are underway to ensure that appropriate governance is in place to prevent this lack of oversight from happening again.

When was the Foundation informed that it lost its 501(c)(3) status?

The revocation took effect in May 2022, but The Board was not made aware until November 2022. The Foundation hired a CPA to assist with the work needed to file the missing tax returns. In addition, the Foundation took advantage of the IRS option to request retroactive reinstatement of its 501(c)(3) status and it was granted in January 2023.

What will be done in the future to keep the Foundation compliant with the IRS?

The Board erred by asking a single person to take responsibility for the Foundation’s tax filings, then failed to oversee the process. Discussions are underway to implement restructure and governance to make sure that this doesn’t happen again.

How does this impact my donation to the Foundation?

All donations made in 2022 are tax-deductible as the Foundation’s 501(c)(3) status has been restored retroactively. If you made a donation on or after May 15, 2022, you will receive an email update.

Can I still make a donation to the Foundation?

Yes! We encourage you to make a donation that can help us be able to carry on with our mission to improve the quality of life and future health of our Portuguese Water Dog companions.