Group's federal 501(c)3 tax-exempt status was automatically revoked last year
CHARLOTTE, N.C. — A leader with Charlotte Black Gay Pride, a local non-profit which presents annual events for the city’s LGBT African-American community, has said his organization is working to reinstate their federal tax-exempt status after losing it last year.
William Singleton, chair of the Charlotte Black Gay Pride board, said he was aware of the organization’s filing troubles. The group’s 501(c)3 tax-exempt status was automatically revoked in May 2012 for failure to file annual organizational tax returns with the IRS for three consecutive years.
“Apparently they didn’t send in the 990s,” Singleton said of past board members. Forms 990 are the annual tax returns, similar to personal tax returns, that non-profit organizations file with the IRS.
“When [the new board] took over [this year], we knew it was revoked because we checked on it,” Singleton added.
Singleton said the organization is currently working to have the tax-exempt status reinstated. The issue was discussed, he said, at a strategic planning conference the group’s board held on Labor Day. Singleton, who says he has a degree in non-profit administration, expects to have the documents filed with the IRS by the end of the month.
The organization had hoped to address the situation earlier, but couldn’t.
“It was actually on the top of our list,” Singleton said. “We wanted to get it done earlier, but with Pride coming on, it was just too many things going on at the same time.”
The group presented their annual Charlotte Black Gay Pride events in July. At the time, Singleton said the organization was honest with donors and sponsors and told them their contributions would not be tax-deductible. The organization’s 2013 sponsor package and application did not state the organization was a non-profit or 501(c)3 organization, but failed to disclose the group’s tax-exempt revocation or reinstatement plans.
Charlotte Black Gay Pride’s tax-exempt revocation was publicly disclosed in February, but wasn’t discovered by qnotes staff until recently, while doing research on another former non-profit, the North Carolina Pride Festival and Parade. Like the Charlotte group, NC Pride lost its federal non-profit status for failure to file its annual returns. The newspaper has reported extensively on NC Pride’s filing failures. The group, based in Durham, has been operating without their tax-exempt status for more than two years. It is apparently being run as a private, for-profit venture by director John Short, who has declined to speak to qnotes about the situation since 2011.
Other local LGBT non-profit organizations have faced similar revocations. The Charlotte Business Guild lost its 501(c)6 tax-exempt status in May 2010. It has since successfully filed to have their status reinstated.