Veterans bar at DAV Yuma closed after nonprofit status lost

Several veterans at the DAV Yuma chapter were left without a familiar gathering place after the organization’s bar was shut down when the chapter lost its federal tax-exempt status. The closure followed a failure to file required nonprofit paperwork for multiple years, a lapse that has concrete consequences for fundraising and services in Yuma County.

"The bar was shut down because we lost our tax exempt," said DAV Yuma Chapter member Ron Benson, who added the chapter worked to correct the paperwork. "So we worked diligently to get the tax return reinstated," Benson said, emphasizing local efforts to remedy the situation.

DAV Arizona adjutant and CEO Dr. Carl Forkner explained why the status was withdrawn. "That happened because for three consecutive years, they did not file their form 990 nonprofit tax return, according to IRS regulations. That requires the IRS to withdraw their nonprofit status," he said. Forkner also said national bylaws constrain activity while a chapter lacks exemption: "As a result, we went down to the chapter for a visit and found that they were still operating their bar even though they were told that they were not able to do so as a result of the non-profit status being lost."

The immediate effect is financial and social. Bars and social rooms at veteran posts are more than convivial spaces; they often generate small but steady revenue for local programs, emergency assistance and community outreach. With the bar closed and fundraising paused, veterans who rely on chapter services and peer support face uncertainty. In a border community like Yuma, where access to services can already be uneven, the interruption magnifies existing gaps in social supports for disabled and low-income veterans.

The episode highlights broader governance and policy concerns for local nonprofits that serve vulnerable populations. Federal rules requiring annual Form 990 filings are strict: three consecutive years of nonfiling triggers automatic loss of tax-exempt status. That process protects public transparency but also creates sudden operational risk when small chapters lack volunteer capacity, bookkeeping support or oversight. For marginalized communities, those administrative shortfalls translate directly to fewer meals, fewer outreach dollars and fewer places to connect.

Restoring status is possible, but it takes time and compliance steps. In the meantime, chapters must avoid accepting donations or running fundraisers to comply with bylaws and federal rules. For local veterans and supporters, that means checking before contributing and advocating for stronger administrative support for community-serving nonprofits so essential programs do not hinge on a single volunteer role.

The takeaway? Keep an eye on the chapter’s status and ask before you donate. Our two cents? Help your local post by asking how you can support bookkeeping, training or volunteer time so Yuma veterans don’t lose the places where they find help and company.