NC NAACP loses tax-exempt status due to failure to file certain tax forms
RALEIGH, NC (WTVD) — The Internal Revenue Service revoked the tax-exempt status of the North Carolina NAACP.
Our news gathering partners at The News & Observer report that the IRS revoked the organization’s status earlier this year in May, but it wasn’t revealed to the public until this month.
According to the news & Observer, the NC NAACP’s status was revoked because it failed to file tax forms showing the organization’s tax exemption for three consecutive years.
The IRS ruling means the money contributed is now taxable.
Daquan Love, the executive director of the NC NAACP, said the organization is working with the national office to ensure they can restore IRS status.
Love said they are working directly with them and a team of accountants so they can restore the tax status of this chapter and “restore faith in our donors.”
“What this basically means is that once this is reinstated, which we anticipate in a few weeks, it will be applied retroactively and there will be minimal impact on our donors and stakeholders,” Love said. .
The state chapter was placed into administration in 2019, meaning the national office retained some control over day-to-day operations.
“We continue to stand firm and work on civil rights issues like our Leandro litigation and with civic engagement and black voter mobilization in November,” Love said. “From Murphy to Manteo, the North Carolina State Conference is focused on the civil rights issues that affect them.”
Lars Dolder, a political reporter at the News and Observer, said they started digging into this after former NC NAACP chairman Anthony Spearman died in July.
Dolder said they discovered that things before his death were chaotic and the NC NAACP was in “financial chaos”.
The directorship stripped Spearman of most of his operational responsibilities in 2019.
“It has eroded or could erode donor confidence in this organization,” Dolder said. “They obviously relied heavily on the support and contributions of people in the region who wanted to support their mission. It remains to be seen if people lose some of their faith in this organization to get things done, but there is questions like how they use their money, if they have mismanaged it.”
Love said the work of the NC NAACP will not stop and that the organization “is stepping in to resolve administrative issues, to restore our status, work through paperwork with the IRS and we will continue internal financial audits to ensure transparency”.
Dolder said what they discovered was from correspondence from this period where letters circulated between national leaders and those in the state organization where they demanded that Spearman “hand over financial documents proving whereabouts money for several years. years.”
“And for a long time, part of the conflict that Spearman refused,” Dolder said. “He said it was unprecedented and beyond their authority to intervene and so he refused to hand over these documents.”
The pieces of the puzzle came together in the time the letters and emails were being exchanged. The news & Observer scanned hundreds of documents; bank statements, letters and e-mails. He also looked through screenshots of software used to organize the books.
“However, I’m interested in hearing from William Barber, who is still very active, he’s a top national figure,” Dolder said of the former NC NAACP leader who left in 2017.
“We need answers about what was going on behind the scenes, there’s no clarity or definitive story because Spearman and his camp and Barber suggested some things,” Dolder noted. “The state organization says more. The national organization has been remarkably quiet.”
The Raleigh/Apex NAACP had no comment on this.
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