Is Your Charity Still Charitable? Here’s How to Find Out

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

This Free Software Brings Old Laptops Back to LifeMore

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

21 Restaurants Offering Free Food Right NowSaving Money

17 Ways to Have More Fun for Less MoneySave

House Hunters: Beware of These 6 Mortgage MistakesBorrow

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

The True Cost of Bad CreditCredit & Debt

10 Companies With the Best 401(k) PlansGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

6 Healthful Treats for Your DogFamily

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

Where to Sell Your Stuff for Top DollarAround The House

8 Ways to Get a Good Price on a Shiny New AutoCars

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

30 Awesome Things to Do in RetirementCollege

14 Super Smart Ways to Save on TravelSave

The Rich Prefer Modest Cars — Should You Join Them?Cars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

Credit counseling agencies and charitable organizations gain consumer credibility by being registered as a non-profit. But the IRS can revoke that status. Here's a list of recent examples.

If you work with a credit counseling agency, one of the reasons you selected them might be their nonprofit, tax-exempt status. And that’s good logic: In order to qualify as a charitable organization – often called a 501(c)(3), named after the section of the tax code that enables them – organizations have to be, well, charitable. Here’s how the IRS qualifies an organization as tax-exempt.

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.

In short, in order to qualify as a tax-exempt charitable organization, the organization must act in the best interests of the public, as opposed to the people running it. And if the IRS determines that’s not the case, they revoke its 501(c)(3) status and make it pay taxes like the rest of us.

The IRS keeps an eye on 501(c)(3) organizations and periodically publishes a list of those that are losing their tax-exempt status. If you’re donating to one, you certainly want to know if an organization is losing their charitable designation, because that means any donations you make will no longer be eligible for a tax deduction. And if you’re working with one – like a credit counseling organization – losing tax-exempt status is a definite red flag and something you’d want explained.

Here’s a list of organizations that have recently had their tax-exempt status revoked, from this page at the IRS website. Notice how many are credit counseling organizations.

Ameri-Home Foundation, Inc. Lenexa, KS 9/13/10
American Children’s Safety Source Michigan Center, MI 11/1/10
American Family Credit Counseling Peoria, AZ 9/20/10
Anna Foundation, Inc. Melville, NY 11/1/10
Apple Consumer Credit Counseling, Inc. Lynebrook, NY 9/20/10
Brotherhood of Men, Inc. Washington, DC 9/20/10
Buyer’s Fund, Inc., The Salt Lake City, UT 9/13/10
California Consumer Credit Los Angeles, CA 11/1/10
Consumer Counseling Centers of America Washington, DC 11/1/10
Credit Counseling Bureau of San Diego County (Litigation pending) San Diego, CA 9/13/10
Cruffel Foundation, The Jackson, WY 11/1/10
DPA Alliance Corporation (Litigation pending) Provo, UT 10/4/10
Debterminded Inc. Coral Gables, FL 9/20/10
Debticated Consumer Counseling, Inc. Centerport, NY 11/1/10
Exegetical Institute, Inc. (Litigation pending) Kingsland, GA 9/13/10
Family Home Foundation, Inc. Orem, UT 9/13/10
Five Star Debt Management Services, Inc. Melville, NY 9/20/10
Fleetwood Stage Company, Inc. New York, NY 9/20/10
Gold Coast Credit Counseling, Inc. Lake Worth, FL 9/20/10
Harbour Credit Counseling Services, Inc. (Litigation pending) Virginia Beach, VA 10/4/10
Home Downpayment Gift Foundation, Inc. Washington, DC 9/13/10
Interpreter Referral Service dba Chicago Area Interpreter Referral Service Chicago, IL 11/1/10
Jeffrey Reiken Johnson Clergy Public Ministry Association, Inc. A Church, The San Francisco, CA 11/8/10
Life Time Transition, Inc. Robbinsdale, MN 11/8/10
Lighthouse Foundation, Inc. Newman, GA 9/20/10
Minnesota StandDown, Inc. Minneapolis, MN 11/8/10
Museum of Military History Chandler, AZ 11/1/10
Nat Turner Legal Defense Fund (Litigation pending) Garland, TX 10/4/10
Ohio Narcotic Officers Association Warren, OH 11/8/10
Owls Next 1424, Inc. St. Mary’s, WV 11/8/10
Opera Institute of California Palm Springs, CA 9/20/10
Project Challenge of the West Coast, Inc. Bradenton, FL 9/20/10
Promise Consumer Credit Services, Inc. Coconut Creek, FL 9/20/10
Strides, Inc. Watertown, SD 9/20/10
Task of Rome GA, Inc. Rome, GA 11/8/10
Town and Country Acceptance Corporation Cantonment, FL 9/20/10
Unicorn Development Corporation Saint Joseph, MI 9/13/10
United Children’s Fund Michigan Center, MI 11/1/10
Vang Pao Foundation St. Paul, MN 9/20/10
Walker Foundation Cincinnati, OH 9/20/10
Winterhaven, Inc. Norwalk, IA 9/20/10
Xelan Foundation, Inc. (Litigation pending) Tampa, FL 9/13/10
Yonkers Alliance for Latino and Immigrant Services, Inc. Yonkers, NY 8/23/10

If you’re working with any organization on this list as a donor, or in the case of a credit counseling organization, a client, you should be concerned. Call the organization and see what caused the IRS action.

The list above includes only recent revocations. There have been literally hundreds of organizations that have lost their tax-exempt status over the last few years. Here’s a cumulative list of revocations from January 2005 to now.

Table of Links:

A-B C-E F-G
H-J K-M N-O
P-R S-T U-Z

Do a quick check of your favorite charity and make sure it remains your favorite charity.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Lookin’ Good! How to Get a Killer Deal on Eyeglasses

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,923 more deals!