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October 8, 2018; WSOC-TV

Located 12 afar southeast of Charlotte, North Carolina, Matthews is a small, mostly white (78 percent), analytic affluent (median domiciliary assets of $75,000) boondocks of 32,000. In Matthews, the Red Brick Partnership, founded in 2015, serves as a “Main Street” alignment that provides event, marketing, and accompanying supports for the town’s bounded business district. In abutment of these efforts, as Mark Barber letters for WSOC-TV, “the Red Brick Partnership has accustomed tens of bags of aborigine dollars” on an anniversary base from the Burghal of Matthews.

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In particular, Barber explains, aborigine money has enabled Red Brick Partnership to abutment “events such as First Thursdays, which draws dozens of families burghal every ages for alive music, aliment specials and shopping.” Barber adds that, “For years commissioners accept accustomed added than $50,000 in aborigine funds to the alignment beneath the acceptance it was additionally listed with the IRS as a 501c nonprofit.”

There was alone one slight problem. Although registered as a nonprofit in the accompaniment of North Carolina, the alignment had never filed their Form 1023 with the IRS to access tax-exempt status. Added awkward still, lath co-chair John Urban is additionally a burghal commissioner, who had represented the alignment to the Burghal Council as a tax-exempt nonprofit. Now, some Matthew association accept alleged on him to abandon his abettor seat.

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Barber explains that Urban abstruse that the alignment had not acquired 501c3 cachet alone a few months ago. “It’s extremely painful,” Urban says, but “people accomplish mistakes, we’re all sinners.”

Apparently, Urban explains, a pro bono advocate had abandoned to abide the 501c3 appliance to the IRS in 2016. Neither the boondocks nor lath noticed until aftermost spring, back the alignment approved a authorization to serve booze at an event. Alas, back affidavit of tax-exempt cachet was requested, the nonprofit searched in arrogant for that absent IRS letter.

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Barber asked Urban, “Should you accept bent this botheration sooner?”

Urban’s acknowledgment does not reassure: “Should’ve, would’ve, could’ve. I don’t know.’”

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There are, of course, added affidavit than bald acquiescence why, as lath co-chair, Urban ability accept asked to see his own nonprofit’s Form 990 filing. As a advance nonprofit lath member, actuality accustomed with your 990 is allotment of the job. As NPQ’s Michael Wyland explains:

Don’t aish the 990 as a claim for auditors and accounts experts to accord with. Nonprofit staffs, boards, donors, and volunteers should be acquainted that the about accessible acknowledgment is a accessible relations apparatus that communicates governance, program, and armamentarium development advice as able-bodied as assets and expenses, assets and liabilities.

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Now, the Red Brick Partnership is scrambling to accumulate annal and ensure its connected existence. For the time being, the burghal of Matthew has arctic the $20,000 it was planning to accord this year until it can affirm that the alignment has filed for and acquired tax-exempt status.—Steve Dubb

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