IRS Posts
2009-08-05: Waiting with Baited Breath
Want to know another reason why the Hermitage isn't making their Form 990's for 2008 available? Because as of this afternoon, they had not yet even filed them with the IRS, but had asked for an extension. This is the same organization whose Executive Director stated on the witness stand that Paula LaRue was a poor business manager because she was late paying a bill. I'll make a follow-up call in 10 days, and let you know whether they met the extension deadline.
2008-06-19: Hermitage Donor Files Complaint With IRS
Gary Stanfield is a Hermitage donor and volunteer, and has adopted several Hermitage cats, including one with special needs. He has filed a complaint with the IRS that the shelter has failed to provide the required public access to tax documents and the tax exemption application. I have not edited his letter.
Gary L. Stanfield
4311 East Bryn Mawr Road
Tucson, Arizona 85711
(520) 323-1969
IRS EO Classification
Mail Code 4910
1100 Commerce Street
Dallas, TX 75242
June 17, 2008
Dear Sir or Madam,
I am writing to make a formal complaint about a tax exempt nonprofit 501(c)(3) organization repeatedly and deliberately failing to comply with the public inspection requirements for returns and exemption applications. The organization is the Hermitage Cat Shelter, PO Box 13508, Tucson, AZ, 85732-3508, (520)514-9121 . Their EIN is 86-0213263,
I am a volunteer and donor at the Hermitage Cat Shelter. Due to recent events, I have become concerned about how my donations have been used. The organization does not have current financial or organizational information on its website (http://www.hermitagecatshelter.org), only a pie chart from 2006 and a statement that the financial records were not audited. On Tuesday, June 3, 2008, I went in person to the shelter office, and requested from the Executive Director, Mary Jo Spring, copies of the organizations' public documents, including tax returns, articles of incorporation and by-laws. She acted as though she did not understand what I was asking for. When I restated my request, she then tried to direct me to the website, which I rejected, knowing it did not contain the information. She then indicated that the documents might or might not be readily available and that "they" would have to look into it, and told me a board member would contact me. I then left. I received a phone call from her Wednesday, June 4, stating that she had talked with Board member Taylor Heidenheim, and that he would be calling me and that she would have no documents for me that day. She specifically said that the Board had informed her that I must present a specific written request for these documents to them (the board) for them to consider.
Thursday, June 5, I hand delivered the attached letter to the Hermitage Cat Shelter, and emailed the full Board of Directors, specifically listing the public documents I was requesting. I received on Friday June 10, an email from Ms. Spring, also attached, wanting to know by what authority I was requesting the documents. The email said the documents were ready to be picked up, and I was to be charged a $2 per page "research fee". I took with me copies of the IRS website FAQ listing documents which were required to be open to the public. While I knew the research fee was inappropriate, I wanted the documents, so I took cash with me to the shelter. I have attached an invoice from the shelter, and also the receipt. When I arrived at the shelter, I was given a stack of documents which were incomplete. I repeatedly asked to see Ms. Spring to address the fact that the documents were not all there, and was refused. Shelter staff went back to talk to her, so I know she was aware there was a problem. No one was interested in seeing the documentation from the IRS that Ms. Spring had asked me to supply.
The documents which were provided were the Form 990 for 2007, the Articles of Incorporation from 1965, a copy of the 2004 Name Change, and the current IRS letter affirming tax exempt status. No part of the requested Form 1023, by-laws or other correspondence were included. In going through the Form 990, I noted that while there are two board members who are married to one another (Dan and Denise Moynihan), Part V-A 75b states they are not related.
I have not yet received the balance of the documents requested, or any further communication.
Sincerely,
Gary L. Stanfield
Gary L. Stanfield
4311 East Bryn Mawr Road
Tucson, Arizona 85711
(520) 323-1969
IRS EO Classification
Mail Code 4910
1100 Commerce Street
Dallas, TX 75242
June 17, 2008
Dear Sir or Madam,
I am writing to make a formal complaint about a tax exempt nonprofit 501(c)(3) organization repeatedly and deliberately failing to comply with the public inspection requirements for returns and exemption applications. The organization is the Hermitage Cat Shelter, PO Box 13508, Tucson, AZ, 85732-3508, (520)514-9121 . Their EIN is 86-0213263,
I am a volunteer and donor at the Hermitage Cat Shelter. Due to recent events, I have become concerned about how my donations have been used. The organization does not have current financial or organizational information on its website (http://www.hermitagecatshelter.org), only a pie chart from 2006 and a statement that the financial records were not audited. On Tuesday, June 3, 2008, I went in person to the shelter office, and requested from the Executive Director, Mary Jo Spring, copies of the organizations' public documents, including tax returns, articles of incorporation and by-laws. She acted as though she did not understand what I was asking for. When I restated my request, she then tried to direct me to the website, which I rejected, knowing it did not contain the information. She then indicated that the documents might or might not be readily available and that "they" would have to look into it, and told me a board member would contact me. I then left. I received a phone call from her Wednesday, June 4, stating that she had talked with Board member Taylor Heidenheim, and that he would be calling me and that she would have no documents for me that day. She specifically said that the Board had informed her that I must present a specific written request for these documents to them (the board) for them to consider.
Thursday, June 5, I hand delivered the attached letter to the Hermitage Cat Shelter, and emailed the full Board of Directors, specifically listing the public documents I was requesting. I received on Friday June 10, an email from Ms. Spring, also attached, wanting to know by what authority I was requesting the documents. The email said the documents were ready to be picked up, and I was to be charged a $2 per page "research fee". I took with me copies of the IRS website FAQ listing documents which were required to be open to the public. While I knew the research fee was inappropriate, I wanted the documents, so I took cash with me to the shelter. I have attached an invoice from the shelter, and also the receipt. When I arrived at the shelter, I was given a stack of documents which were incomplete. I repeatedly asked to see Ms. Spring to address the fact that the documents were not all there, and was refused. Shelter staff went back to talk to her, so I know she was aware there was a problem. No one was interested in seeing the documentation from the IRS that Ms. Spring had asked me to supply.
The documents which were provided were the Form 990 for 2007, the Articles of Incorporation from 1965, a copy of the 2004 Name Change, and the current IRS letter affirming tax exempt status. No part of the requested Form 1023, by-laws or other correspondence were included. In going through the Form 990, I noted that while there are two board members who are married to one another (Dan and Denise Moynihan), Part V-A 75b states they are not related.
I have not yet received the balance of the documents requested, or any further communication.
Sincerely,
Gary L. Stanfield
2008-06-09: IRS Public Document Disclosure for Nonprofits
In her letter below, Sue Garvey asks the excellent question, with regards to the finances of the Hermitage: "Why isn't there anything available for public inspection beyond 2006 on your website?" Nonprofit corporations are required to provide to the public the following documents upon request.
--Articles of Incorporation, and any and all supporting documents
--Form 990 (tax return)
--Form 1023 (application for tax exempt status)
--By-Laws (part of Form 1023)
--Any and all letters issued by the IRS regarding the exemption application
Organizations are allowed by the IRS to charge a maximum fee of 20 cents per page, although a cynic like me would say charging donors for access to copies of your financial records is biting the hand that feeds you.
You don't have to take my word for any of this, go check it out for yourself on the IRS website, http://www.irs.gov/charities/article/0,,id=139231,00.html
http://www.irs.gov/charities/article/0,,id=135008,00.html,
http://www.irs.gov/charities/article/0,,id=135014,00.html
Form 1023 is a pdf file, there is a link to its contents in the second webpage above.
*****************************************************************
Exempt Organizations - Public Disclosure Requirements in General
In general, what public disclosure requirements apply to tax-exempt organizations?
In general, exempt organizations must make available for public inspection certain annual returns and applications for exemption, and must provide copies of such returns and applications to individuals who request them. Copies usually must be provided immediately in the case of in-person requests, and within 30 days in the case of written requests. The tax-exempt organization may charge a reasonable copying fee plus actual postage, if any.
Exempt Organizations - Documents Subject to Public Disclosure
What tax documents must an exempt organization make available for public inspection and copying?
An exempt organization must make available for public inspection its exemption application. An exemption application includes the Form 1023 (for organizations recognized as exempt under ? 501(c)(3)), ... together with supporting documents and any letter or document issued by the IRS concerning the application.
In addition, an exempt organization must make available for public inspection and copying its annual return. Such returns include Form 990... The annual return must be available for a three-year period beginning with the due date of the return (including any extension of time for filing).
Form 1023, Parts IV and Checklist, referenced above:
Part IV Narrative Description of Your Activities
Using an attachment, describe your past, present, and planned activities in a narrative. If you believe that you have already provided some of this information in response to other parts of this application, you may summarize that information here and refer to the specific parts of the application for supporting details. You may also attach representative copies of newsletters, brochures, or similar documents for supporting details to this narrative. Remember that if this application is approved, it will be open for public inspection. Therefore, your narrative description of activities should be thorough and accurate. Refer to the instructions for information that must be included in your description.
Form 1023 Checklist (Revised June 2006)
Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code
Note. Retain a copy of the completed Form 1023 in your permanent records...Assemble the application and materials in this order:
● Form 1023 Checklist
● Form 2848, Power of Attorney and Declaration of Representative (if filing)
● Form 8821, Tax Information Authorization (if filing)
● Expedite request (if requesting)
● Application (Form 1023 and Schedules A through H, as required)
● Articles of organization
● Amendments to articles of organization in chronological order
● Bylaws or other rules of operation and amendments
Exempt Organization Public Disclosure - Costs for Providing Copies of Documents
What does the IRS consider to be a reasonable charge for copying costs?
A tax-exempt organization may charge a reasonable fee for providing copies, which is generally defined as the amount charged by the IRS for providing copies. Under regulations issued in July 2004, the IRS may not charge more for copies than the fees listed in the Freedom of Information Act (FOIA) fee schedule. In addition, although the FOIA fee schedule directs the IRS to provide the first 100 pages free, the regulations allow the exempt organization to charge a fee for all copies. For non-commercial requesters, the FOIA schedule currently provides a charge of $.20 per page.
An organization may require payment before it provides copies, but must advise requesters of the total cost of the copies requested if adequate payment is not included with the request.
*****************************************************************
Executive Director Spring has been claiming that the shelter has money problems. The Board has been claiming that the excellent ED they hired is doing a great job fundraising. But neither one is putting the actual numbers out there. Donors large and small, it's time to find out how your contributions have been spent. The shelter must, by law, provide these documents to any member of the public, as a requirement of being granted tax exempt status. And when you request copies of the Form 990 and Form 1023, remember that the by-laws are a part of Form 1023. That way, if you don't like the numbers you see, you have the information you need to effect change.
--Articles of Incorporation, and any and all supporting documents
--Form 990 (tax return)
--Form 1023 (application for tax exempt status)
--By-Laws (part of Form 1023)
--Any and all letters issued by the IRS regarding the exemption application
Organizations are allowed by the IRS to charge a maximum fee of 20 cents per page, although a cynic like me would say charging donors for access to copies of your financial records is biting the hand that feeds you.
You don't have to take my word for any of this, go check it out for yourself on the IRS website, http://www.irs.gov/charities/article/0,,id=139231,00.html
http://www.irs.gov/charities/article/0,,id=135008,00.html,
http://www.irs.gov/charities/article/0,,id=135014,00.html
Form 1023 is a pdf file, there is a link to its contents in the second webpage above.
*****************************************************************
Exempt Organizations - Public Disclosure Requirements in General
In general, what public disclosure requirements apply to tax-exempt organizations?
In general, exempt organizations must make available for public inspection certain annual returns and applications for exemption, and must provide copies of such returns and applications to individuals who request them. Copies usually must be provided immediately in the case of in-person requests, and within 30 days in the case of written requests. The tax-exempt organization may charge a reasonable copying fee plus actual postage, if any.
Exempt Organizations - Documents Subject to Public Disclosure
What tax documents must an exempt organization make available for public inspection and copying?
An exempt organization must make available for public inspection its exemption application. An exemption application includes the Form 1023 (for organizations recognized as exempt under ? 501(c)(3)), ... together with supporting documents and any letter or document issued by the IRS concerning the application.
In addition, an exempt organization must make available for public inspection and copying its annual return. Such returns include Form 990... The annual return must be available for a three-year period beginning with the due date of the return (including any extension of time for filing).
Form 1023, Parts IV and Checklist, referenced above:
Part IV Narrative Description of Your Activities
Using an attachment, describe your past, present, and planned activities in a narrative. If you believe that you have already provided some of this information in response to other parts of this application, you may summarize that information here and refer to the specific parts of the application for supporting details. You may also attach representative copies of newsletters, brochures, or similar documents for supporting details to this narrative. Remember that if this application is approved, it will be open for public inspection. Therefore, your narrative description of activities should be thorough and accurate. Refer to the instructions for information that must be included in your description.
Form 1023 Checklist (Revised June 2006)
Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code
Note. Retain a copy of the completed Form 1023 in your permanent records...Assemble the application and materials in this order:
● Form 1023 Checklist
● Form 2848, Power of Attorney and Declaration of Representative (if filing)
● Form 8821, Tax Information Authorization (if filing)
● Expedite request (if requesting)
● Application (Form 1023 and Schedules A through H, as required)
● Articles of organization
● Amendments to articles of organization in chronological order
● Bylaws or other rules of operation and amendments
Exempt Organization Public Disclosure - Costs for Providing Copies of Documents
What does the IRS consider to be a reasonable charge for copying costs?
A tax-exempt organization may charge a reasonable fee for providing copies, which is generally defined as the amount charged by the IRS for providing copies. Under regulations issued in July 2004, the IRS may not charge more for copies than the fees listed in the Freedom of Information Act (FOIA) fee schedule. In addition, although the FOIA fee schedule directs the IRS to provide the first 100 pages free, the regulations allow the exempt organization to charge a fee for all copies. For non-commercial requesters, the FOIA schedule currently provides a charge of $.20 per page.
An organization may require payment before it provides copies, but must advise requesters of the total cost of the copies requested if adequate payment is not included with the request.
*****************************************************************
Executive Director Spring has been claiming that the shelter has money problems. The Board has been claiming that the excellent ED they hired is doing a great job fundraising. But neither one is putting the actual numbers out there. Donors large and small, it's time to find out how your contributions have been spent. The shelter must, by law, provide these documents to any member of the public, as a requirement of being granted tax exempt status. And when you request copies of the Form 990 and Form 1023, remember that the by-laws are a part of Form 1023. That way, if you don't like the numbers you see, you have the information you need to effect change.
