Snowball Express Charity Is Not Tax-Exempt

The Snowball Express, an organization that offers an all-expenses-paid vacation for military families, does not have tax-exempt status from the Internal Revenue Service—even though it told potential donors it did, reports National Public Radio.

Michael and Jeannie Kerr are the co-founders and organizers of the Snowball Express, which took widows, widowers, and children of American military men and women killed in Iraq on a weekend vacation this month.

On the group’s Web site, in solicitation letters, and in e-mail messages, the organizers describe donations to the Snowball Express as tax-deductible or say that the organization’s tax-exempt status is pending, but the Kerrs declined to provide National Public Radio with its application to the IRS for tax-exempt status.

The Kerrs, who live in California, said they thought they had a longer period to file their application for tax-exempt status, despite specific warnings from an accountant.

“We were so busy doing this event and I just knew we would just clean it up, we would just make sure that everything was cleaned up in very good form,” said Ms. Kerr.

It is unclear whether the donations made to Snowball Express, which total about $1-million in cash and gifts of products and services, will be allowed as tax-deductible. The Kerrs may face heavy fines and possibly even criminal prosecution, National Public Radio said.