Tuesday, June 25, 2024
Does Running a Charity Require Too Much "Red Tape"? A St. Paul Restaurant Owner Thinks So
The Star Tribune reports that a St, Paul restaurant owner who had founded the section 501(c)(3) nonprofit Give Hope will give up its nonprofit status to avoid having to deal with state "red tape." More specifically, he chose this path after the Minnesota Attorney General's office informed the organization that it was required to register as a Minnesota charity as well as satisfying its federal obligations. But Give Hope apparently was not doing very well on the latter front either, as according to the IRS Tax Exempt Organization Search tool (listed under EIN 85-0666744) it had its tax-exempt status automatically revoked in 2023 for failing to file three annual returns in a row. It is unclear whether the organization still had any assets before it chose to dissolve, which of course would have to be disposed of in a manner that furthered its charitable purposes. An interesting illustration that not everyone who founds a new charity, even with only the best of intentions, recognizes or accepts the legal responsibilities that come with it.
Lloyd Mayer
https://lawprofessors.typepad.com/nonprofit/2024/06/does-running-a-charity-require-too-much-red-tape-a-st-paul-restaurant-owner-thinks-so.html