HOLYOKE — After losing its tax-exempt status earlier this year, the Holyoke Public Library has announced reinstatement of the status.
The reinstatement of the nonprofit’s tax-exempt status means they are once again recognized as a tax-exempt organization and contributions made to the organization are deductible for federal income tax purposes.
“We are delighted to have our tax-exempt status reinstated,” said Board President of the Holyoke Public Library George Mettey. “This accomplishment, along with the support of our generous donors allows us to continue our important work of providing equal access to library materials, services, facilities, technology, up-to-date resources and programs to meet the educational, informational, social, cultural and recreational needs for residents of all ages and abilities in the city of Holyoke and surrounding areas.”
Mettey added the library remains committed to maintaining compliance with all IRS requirements and in order to ensure the tax-exempt status remains in good standing, the library has hired a full time financial manager.
Holyoke Public Library Director María Pagán told Reminder Publishing the library lost its status due to a lapse in meeting IRS requirements. Specifically, the organization failed to submit required tax filings for three years in a row.
Following the change, the library quickly sought the assistance of legal and financial professionals to navigate the process of reinstatement.
“We are grateful for all who played a crucial role in helping the Holyoke Public Library reinstate its tax-exempt status with the IRS. Their collective efforts, dedication and expertise demonstrated by each of them were instrumental in achieving this important milestone in a timely manner,” said Pagán. “The legal and financial professionals addressed and corrected any past oversights that led to the revocation, such as filing any missing returns and the library paying any penalties.”
Pagán added the library aimed to keep communications transparent with the public, donors and vendors that they were in this process of reinstatement in order to maintain transparency and trust.
“The reinstated tax-exempt status allows the Holyoke Public Library to be exempt from federal income tax, which can significantly reduce its financial burden. Donors to the library can again claim tax deductions for their contributions, potentially increasing the library’s fundraising capabilities,” Pagán said.
Pagán added the financial and legal stability provided by the reinstated status allows the library to continue to focus on its mission and services rather than financial and regulatory concerns. The reinstated status also allows the library to engage in long-term financial planning and development efforts with greater confidence and security, according to Pagán.
“And most importantly, reinstatement enhances the library’s credibility and trust within the community, as it reflects the compliance with federal regulations and commitment to transparency,” Pagán said. “To the library staff and board members, thank you for your patience and dedication, and to our supporters and donors, we thank you for your continued trust and contributions during this period.”
