When it was first formed, its tax-exempt status was briefly revoked when it screwed up a tax return (known as a 990). The group is run by volunteers, some of whom are retired Gracedale workers. That revocation was lifted within a few months after the error was corrected, and all donations and gifts are tax exempt, including those made during the revocation.
You can see the IRS Determination here:
No harm, no foul, right?
Not according to NorCo County. Solicitor Missy Rudas has sent not one, but two certified letters to Friends of Gracedale demanding that it stop raising funds and "cease and desist" from using Gracedale as part of its name.
Here's her latest missive:
In this letter, Rudas contends that her determination is based on a review of the IRS website. Missy is not stupid, so I can only conclude that someone at Gracedale or in county administration misread the webpage and subsequently misinformed her.
In my own review of the IRS website, which took 5 minutes, the IRS determination that Friends of Gracedale (posted above) is clearly linked. So are the tax returns for years 2020-2024 (they are 990-N returns because the gross receipts are very small).
I was unaware that the NorCo Solicitor's office enforces the federal tax code. That would be news to the IRS. That office should have done its research a little better.
I suspect what really is going on here is a what amounts to a hostile takeover. Executive Tara Zriski has created a Continuum of Care department, and part of that department will be raising funds for what amounts to a massive Gracedale Village that will include housing, medical offices, assisted living, and a refurbished nursing home.
That's fine, but that's a county project. Friends of Gracedale exists for the residents, not for county development.

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