Wed, May 22, 2013

Christmas Angels is not a nonprofit

OXFORD HILLS — An organization calling itself, among other things, the Oxford Hills Christmas Angels is claiming to be a nonprofit organization but is, actually, a for-profit organization, said Oxford Police Lieutenant Mike Ward.

The group is under investigation by the Oxford Police Department which is trying to determine where the money is going. The state Attorney General's Office is aware of the investigation and waiting in the wings, according to Ward.

Ward said they have received complaints and have verified that the group does not hold legitimate nonprofit status.

All nonprofit corporations in Maine are either "public benefit" or "mutual benefit" corporations. "Public benefit" corporations are organized for charitable purposes and recognized as tax-exempt under section 501(c)(3) of the Internal Revenue Code.

Public benefit corporations include such things as volunteer fire departments, grant-making foundations and homeless shelters.

If a corporation's mission is to serve a limited number of members with common interests, it is probably a mutual benefit corporation, according to the state government website. Common examples of mutual benefit corporations include homeowners’ associations, snowmobile clubs and trade associations.

The angels have been operating for a number of years, holding fundraising events and claiming to be a nonprofit, and some of the individuals involved have been part of another group which is also under investigation, Ward said. He is trying to determine how much, if any, of the income actually goes to the public.

Ward wants the community to be aware that the organization is not a legitimate nonprofit organization.

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