NARTH Loses Tax Exempt Status

In September 2012, the tax exempt status of the National Association for the Research and Therapy of Homosexuality (NARTH) was revoked due to failure to file Form 990 for three consecutive years. The notice of revocation was posted on March 11 according to the IRS website:

Even though the full name of the organization is not listed, the Employee Identification Number and address match up with the 2009 990 form. A call to the IRS also confirmed the action.

NARTH's website advises prospective donors that their donations will be tax deductible but it appears such deductions after Sept. 15, 2012 may not be allowed.

It is difficult to know what this means regarding the health of NARTH. Popular among evangelicals, NARTH has never been a wealthy organization and conference attendance has declined in recent years. Members are hoping to maintain their ability to conduct reparative therapy with minors in California via lawsuits against the state to overturn SB 1172 (see this article for more on SB 1172 and then NARTH's perspective). NARTH has been actively soliciting donations to help support their legal actions. One would not be able to tell from the website that those donations are not deductible.

In recent days NARTH's office has been telling potential donors that the IRS notice is a mistake. However, NARTH has not issued any statement nor alerted donors that donations to NARTH claimed on a tax return may subject the taxpayer to a penalty.