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IRS revokes tax exempt status of Alliance for Strengthening Families

The Internal Revenue Service has revoked the 501(c) 3 for the Alliance for Strengthening Families, which has led to the Alliance office letting go of all of their employees.  This was confirmed Thursday by Dr. Oreta Crichton, a board member for the Alliance, who also said it’s “temporary”.

 

A 501(c) 3 status is given to non-profit organizations, allowing them to be tax exempt in the United States and its territories. The tax status is among the requirements when seeking grants from the federal government.

 

The Alliance for Strengthening Families and its community partners have a number of activities and events planned under the general theme of raising public awareness of sexual violence in American Samoa, which are now on hold, while it resolves its tax status issue.

 

Responding to Samoa News queries, via telephone, Crichton said they had to let go all of the Alliance’s employees and Friday was their last day. According to some of the employees, an announcement was made earlier this week that Flo Aetonu, who is the board Chairperson, would be the new Executive Director. However according to Crichton, Mrs. Faaalu Faletoese Iuli remains as the Director.

 

“She wanted to step down as she feels responsible for the revocation of the Alliance 501(c) 3, but the federal grantors have reached out to the Alliance and said that she must remain as the director until everything is sorted.”

 

Crichton further told Samoa News that the layoff of their employees is “temporary”.

 

When asked why the IRS had revoked their 501(c) 3, she responded that their financial person dropped the ball and “had forgotten to turn in the necessary reports.”

 

She further advised Samoa News that the employees who have been laid off have already turned in the necessary reports to have their tax exempt status reinstated.

 

According to Crichton, the grant that is used to pay for the Alliance employees has been frozen, due to the tax certificate being revoked. Samoa News asked when it had been revoked, but Crichton said she was unclear as to when it happened. However according to one of the employees, this occurred two months ago.

 

(Samoa News understands that when an advocate for victims of domestic violence, based off-island, was looking to apply for a grant for the Alliance, it was then the feds found out that the Alliance’s 501 (c) 3 had been revoked by the IRS.)

 

Crichton pointed out that the Alliance is an advocacy group which has worked hand in hand with other non-profit organizations that provide services to families and sexual abuse victims, but the Alliance does not take cases — rather they are a support group.

 

When asked about the amount of funding the Alliance receives from the federal grantors, she referred the question to the Alliance Director, who told Samoa News via telephone, that the group operates on a “little under $500,000 in grant funding” a year.