Are US open source organisations having their applications for non-profit status blocked?
In a post to a private mailing list I follow, Software Conservancy chief Bradley Kuhn has confirmed that an unexpected problem highlighted recently by CASH Music is indeed a real issue for open source groups in the USA seeking to formalise non-profit status. I asked Bradley if he'd be happy to share some of the information from that posting and he agreed.
The problem is that, for unexplained reasons, the US tax authorities (IRS) are not approving applications from open source organisations for tax-exempt status very quickly - if at all. As Jesse von Doom notes in the blog posting that drew attention to the matter, "no one wants to draw the ire of the IRS", but Bradley observes that this is a problem he has been hearing about for over a year.
He explained that representatives of multiple projects have approached him at conferences over the last year or two worrying about delays, but he's not been able to comment publicly because he didn't have their permission to make it public.
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