A Deeper Look at Our Community Discernment: Q&A
Friends, as you might have read in our March 2022 Newsletter we have decided to file for 501(c)3 tax exempt status. The announcement letter is also here on the blog. For those that want to learn more about our community discernment process please read on.
Over the past 2 years we have been researching and reflecting on whether becoming a 501(c)3 organization would benefit the community and our mission.
This question has been around for a long time, and comes up for almost every Catholic Worker community. In our early research we found that communities take many forms, but most of them decide to file for tax exempt status. In the past we have deferred to the movement’s founder Dorothy Day who was outspoken on this issue: “The Government has no right to legislate as to who can or who are to perform the works of mercy. As personalists, as an unincorporated group, we will not apply for this ‘privilege.’” Our local founder Bix and earlier groups of workers were in agreement with her, and insisted that we should follow the tradition, and not apply for 501(c)3 status.
But in the last few years we have wondered whether this way best serves our guests and community. One core reason we raise this issue is the need for a strong ongoing maintenance plan and the funds to get it done. Bix was a strong advocate for acquiring property, which has served us well, but that property needs care. How will we accomplish this?
We have had several recent opportunities to apply for grant funds. We were awarded funds to develop and plant the meditation garden, and to renovate the front porch. However, in each case we needed another organization to accept the funds on our behalf because the funds could only be dispersed to a 501(c)3 organization. The front porch project in particular was a necessary improvement that was completed with all volunteer labor, but we could not have purchased the materials without this additional support.
Over the past 8 years we have accelerated the pace of building maintenance, which has become our single largest budget item. For our buildings to remain in good condition, we know that this pace needs to continue, and for that we will need increased income. Our experience shows that grants for maintenance and capital improvement projects like these are within reach.
For the last two years, we have been consulting with attorneys, non-profit leaders and experts, our elders, and long-time supporters. We have invited input from different perspectives. Our discussion over the last two years has brought out many questions. Among them:
What do we think about Dorothy Day’s objections to 501(c)3 status?
In May of 1972 Dorothy wrote an article for the Catholic Worker newspaper detailing her objection to filing for 501(c)3 status. If you want to take the time, it is a pretty interesting read, and the link is included below, as are the links to the New York Times articles about the issue as it became public. At the time, the Catholic Worker had recently received a large bequest. Having never filed for a tax exemption, the IRS imposed an inheritance tax on that gift, as well as back taxes and penalties for several years amounting to almost $300,000. The suit was eventually dropped after the IRS investigated the use of the funds and deemed their purposes charitable, just as Dorothy had said: “We know such a requirement is to protect the public from fraudulent appeals and we feel our lives are open books - our work is obvious.”
Dorothy was objecting to an entire system that wages war. While we share her non-violent commitment, we are not all in agreement about what role 501(c)3 status plays in living it out. Dorothy said herself in the same article, “Nothing is ever clear-cut or well defined. We protest in any way we can, according to our responsibilities and temperaments.” We also say, our work is obvious. She framed the issue as refusing to ask permission to do the works of mercy. We have been doing the work for 35 years, and need no permission. But we have concluded that we can do this work better, and care for people who count on us, and steward the resources we are given better by making this change.
https://www.catholicworker.org/dorothyday/articles/191.html
https://www.nytimes.com/1972/05/19/archives/dorothy-day-and-movement-resist-us-tax-claim.html
What does the Catholic Worker Tradition mean for us now?
There are many parts of the Catholic Worker tradition that are essential for us. We are committed to the daily practice of the works of Mercy. A gentle personalism is at the heart of our house of hospitality and our work with guests. Our primary identity is as a community, rather than as an organization. We make decisions together as peers with no director. We practice compassion and forgiveness, with the story of the Gospels as our guide. We do not think these essential things are gained or lost whether we choose to become a 501c3 or not.
Would this change of status affect our freedom to engage in resistance work or non-violent direct action?
There is nothing in the 501(c)3 structure that prevents us from advocating for change, and nothing that prevents us as individuals from engaging in non-violent direct action. In our discussion, we expressed caution about the influence of larger donors who might withdraw support based on our resistance work. But that is true whether we become a 501(c)3 or not, and is true for every organization committed to change. Accepting those consequences is part of engaging in justice work.
At the start, we looked at this question as one that might mean a big change, so we took our time. We wondered what might be lost in the process. But as we moved forward and gathered information, the change began to look smaller and smaller. We are not changing who we are, we are filing different paperwork. And in the process we clarified what is most important to us. Our discernment process is not fast or efficient, but it’s strength is in drawing out the wisdom of the whole community for this kind of change. We are grateful for the good advice, the perspective, and all the help we have received in reaching this decision, and we look forward to the possibilities that it will open. As always, we appreciate your care and support.
