A bill sponsored by an Indiana lawmaker would require the Internal Revenue Service to notify nonprofit organizations before revoking their tax-exempt status. U.S. Sen. Dan Coats says the lack of notification creates uncertainties for charities, their donors and the people they serve. Under current federal law, charities and other nonprofits automatically lose their tax-exempt status if they do not file annual information returns for three consecutive years. The returns must be filed, even if the charity receives minimal money. According to Coats, 11,600 charities and nonprofits in Indiana have lost their tax-exempt status since 2010 because of this provision. It was originally enacted to clear defunct nonprofit organizations from the government’s tax rolls. Coats adds many community and faith-based organizations have stepped in to fill voids left by government spending reductions. If they lose their nonprofit status they have to file for tax-exempt status again and run the risk of losing donors while waiting for approval.