The Kingston Newburgh Enterprise Corporation has had its nonprofit status revoked, along with 50 other nonprofits listed with an address in Newburgh, NY.  The IRS has published the full list by state here.  I have extracted the Newburgh nonprofits onto this document.

It’s a bit of a surprise to hear KNEC has lost its nonprofit status because in previous discussions, there appeared to be only the leftover funds (and loan portfolios) from a defunct governmental agency, to be used at the discretion of the respective cities (Kingston and Newburgh each receiving separate amounts.)

The nonprofits have had their tax-exempt status revoked because of failure to file an annual return for three years.  From Guidestar:

The Pension Protection Act of 2006 requires the IRS to revoke the tax exemption of any nonprofit that is required to file an annual return (Form 990, 990-N, 990-EZ, or 990-PF) but has failed to do so for three consecutive years.

Revocations are mandatory and automatic under the law.