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11,000 Nonprofits Lose Status

Organizations failed to file proper paperwork.

Brattman v. Secretary of the Commonwealth, 658 N.E.2d 159 (Mass. 1995)

Key point: In many states, incorporated churches can lose their corporate status by failing to submit an annual corporate report to the secretary of state.

The Supreme Judicial Court of Massachusetts upheld an action by the secretary of state revoking the corporate status of 11,000 nonprofit corporations that failed to file their annual corporate reports as required by state law!

Massachusetts nonprofit corporation law specifies:

If the corporation fails to submit its [annual report] for two successive years, the state secretary shall give notice thereof by mail, postage prepaid, to such corporation in default. Failure of such corporation to submit the required [report] within ninety days after the notice of default has been given shall be sufficient cause for the revocation of its charter by the state secretary.

Pursuant ...

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Posted:
  • September 1, 1996

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