Los Angeles Charity Refuses Tax-Exempt Status
March 26, 2007 | Read Time: 1 minute
The Los Angeles Catholic Worker, which provides food, shelter, and medical and dental care to poor people, has spent decades struggling because it refuses to register with the Internal Revenue Service as a tax-exempt group on solely philosophical grounds, reports the Los Angeles Times.
The stance dates back 70 years to founder Dorothy Day’s admonition to keep the federal government at arm’s length.
By working outside the system, the charity denies itself access to crucial sources of money such as government and foundation grants and United Way dollars. Individuals and companies can’t claim a deduction for gifts to the group because it lacks tax-exempt status.
The organization depends instead on volunteer work and gets donations from people who don’t worry about whether they can get a tax deduction.
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