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IRS reinstates Cedar Rapids arts organization CSPS’ nonprofit status
CSPS lost 501(c)(3) status for failing to file 3 years of taxes
Marissa Payne
Aug. 11, 2022 10:38 am, Updated: Aug. 11, 2022 3:13 pm
CEDAR RAPIDS — The IRS has notified iconic Cedar Rapids arts organization CSPS that it has reinstated the group’s tax-exempt status, opening access to more funding sources as the nonprofit grapples with charting a long-term path toward sustainability.
CSPS was notified in July 2021 that its 501(c)(3) status, which allows the group to receive charitable contributions and access to certain grant funds, was automatically revoked for failing to file tax returns for three consecutive years from 2018 through 2020.
Now in a letter dated July 18, the IRS said it reinstated CSPS’ tax-exempt status retroactive to Nov. 15, 2020, when it lost the designation. That generally means any contributions made to the organization that anchors CSPS Hall, 1103 Third St. SE, since the announcement of the tax-exempt status loss are now tax-deductible.
“This is wonderful news for this important community arts organization as we enter a full season of programs to inform, entertain and transform,” CSPS board President Monica Vernon said in a statement.
The failure to file those tax returns happened under previous CSPS staff and board members, after leadership changes and COVID-19 disruptions already had dealt the group a blow it worked to pay off more than $100,000 in debt.
To plug gaps while much grant funding was inaccessible without tax-exempt status, CSPS’ board was looking to raise $125,000 by the end of 2022 to maintain its operations.
Vernon told a small group of supporters in June the group was taking steps to support its long-term sustainability by boosting revenue, focusing on fundraising and strengthening community connections.
“It’s also a great boost to our efforts to become sustainable over the long term,” Vernon said. “We invite all who believe in the value of CSPS to step forward and become a friend of CSPS at some level. It was a tough year without our 501(c)(3) but with the help of our patrons, staff, board and volunteers we are working hard to shore up the health of this jewel in the crown of New Bohemia.”
The notification of its tax-exempt status reinstatement comes as CSPS is experiencing a leadership transition.
Jim Miller last month ended a stint as the interim executive director since January. He stepped in after the departure of Taylor Bergen — the first leader of the organization after the departure of the group’s founders, Mel Andringa and F. John Herbert.
A new temporary or permanent leader has not been named yet, but Vernon has said the board will conduct a search and evaluation for leadership. The timeline is uncertain.
Bookings were already planned through the next year, Vernon had said. Revival Theatre and SPT Theater shows already were on the calendar, but staff worked to bring in other concerts, art exhibits and collaborations with NewBo/Czech Village entities in Cedar Rapids, as well as partnering with the Englert Theatre in Iowa City to bring Grammy-nominated folk singer/songwriter Mary Gauthier to the CSPS stage Sept. 17.
Comments: (319) 398-8494; marissa.payne@thegazette.com
A visitor watches a video art piece by Tony Orrico in the main gallery during August's First Thursday open gallery reception at CSPS Hall, 1103 Third St. SE, in southeast Cedar Rapids, Iowa, on Thursday, Aug. 6, 2020. (Jim Slosiarek/The Gazette)