As someone who trolls Form 990s and the nonprofit press fairly frequently, the news that some nonprofits are not reporting fundraising expenses wasn’t a surprise. The number of errors on 990s in general has been reported before.
But 41% of the largest nonprofits! That I didn’t expect.
So make sure that your 990 tells a compelling story about your work. Don’t leave that story solely in the hands of your 990 preparer.
The IRS has released a state-by-state list of nonprofits that are at risk of automatically losing their tax exempt status for failure to file required reports for three consecutive years. They are giving small groups an extension to October 15, but after that, you are out of luck.