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

Photo (cc) by DVIDSHUB

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.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
How to Buy a Refrigerator, Step by Step
How to Buy a Refrigerator, Step by Step

Here’s how I got the perfect appliance at the perfect price.

14 Things That Are ‘Free’ With Medicare
14 Things That Are ‘Free’ With Medicare

These services could save you money and help prevent costly health problems.

Half of All Retirees Say They Fear This
Half of All Retirees Say They Fear This

Chances are good that you share this fear. Here’s a way to overcome it.

Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?
Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?

You could save more than $30,000 by setting aside these costly expenses for just one year.

Replace These 8 Things — for Your Health and Your Budget
Replace These 8 Things — for Your Health and Your Budget

Being frugal isn’t smart if you put off replacing these things. Waiting too long can cost money or even endanger your health.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

The 15 Worst States for Retirees in 2020
The 15 Worst States for Retirees in 2020

Based on dozens of metrics tied to affordability, quality of life and health care, these are not ideal places to spend retirement.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

This Is the Cheapest Place to Buy a Used Car
This Is the Cheapest Place to Buy a Used Car

Looking for a good deal on a set of wheels? This should be your first stop.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

7 Surprising Features That Boost Your Home Value
7 Surprising Features That Boost Your Home Value

You can add value to your home without hiring a contractor to do expensive renovations.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

15 Amazon Purchases That We Are Loving Right Now
15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.