Press Release
SUPREME COURT CASE MAY HAVE PROFOUND IMPACT ON GEORGIA NON-PROFITS
Athens, GA - 3/24/2010 -
The Supreme Court of Georgia has agreed to review a case that will have a profound impact on non-profits in the state of Georgia. The Court will review the classification of “purely public charity” in reference to whether or not the property owned by charitable nonprofit organizations should be exempt from property taxes. Clarification of what it means to use the property "exclusively" for charitable purposes is expected from the Court.
On March 15th, 2010 the Supreme Court granted the writ of certiorari in the case NUCI PHILLIPS MEMORIAL FOUNDATION, INC. v. ATHENS-CLARKE COUNTY BOARD OF TAX ASSESSORS. The case was assigned to the June 10 oral argument calendar.
Case History
Despite receiving exempt status from the Athens Clarke County Board of Equalization and the Superior Court in 2008, the Court of Appeals of the State of Georgia ruled last year that the law does not apply to Nuçi’s Space because the nonprofit rents out its space for parties, functions that judges said are not exclusively related to its charitable purpose. The court stated that because “the foundation also rented rehearsal space” its property use was not supported by the current law, even though offering such a resource is vital to the organization’s mission. The court stated that “an organization does not dispense purely public charity when a person obtains its services by paying a fee.”
Following the Court of Appeals decision, a petition for writ of certiorari was submitted to the Supreme Court by Attorney Jim Warnes on behalf of the Nuçi Phillips Memorial Foundation, Inc. Mr. James C. Warnes, a partner of Timmons, Warnes & Anderson, LLP in Athens, GA, has worked pro-bono while representing the Nuçi Phillips Memorial Foundation since the organization’s original appeal of the Board of Tax Assessors decision to deny exemption in 2007.
Warnes’ petition for Writ of Certiorari received support from the Georgia Center for Nonprofits, Inc. (GCN) in the form of an Amicus Brief filed with the Supreme Court of Georgia. GCN is a not-for-profit association, with over 1200 members, dedicated to serving, strengthening and supporting Georgia’s not-for-profit and charitable organizations. The brief urges the Supreme Court to reverse the Court of Appeals’ decision as “a matter of public policy.” In addition, the brief states “there are approximately 26,000 public charities in Georgia, one third of which own property and rely on property tax exemptions. If the Court of Appeals decision is allowed to stand, it will have an enormous financial impact on Georgia’s not-for-profit sector, rendering many of these not-for-profit organizations unable to continue their charitable work.”
About the Georgia Center for Nonprofits
An all-in-one resource for and about Georgia's nonprofit sector, the Georgia Center for Nonprofits works to serve, strengthen and support nonprofit, charitable organizations statewide. The Center provides nonprofits with the resources and tools they need to be most effective; promotes partnerships between nonprofits and foundations, businesses and government to meet critical needs; and helps state and local policy-makers and the public, understand and support the work of nonprofits. More information is available online at www.gcn.org
About Nuçi’s Space
In 1999, the Phillips family of Atlanta formed the Nuçi Phillips Memorial Foundation in memory of their 22-year-old son and brother Nuçi, who in 1996 killed himself after a long battle with major depression. Nuçi was a talented musician and a promising student at the University of Georgia in Athens. Having lived the course of Nuçi's illness with him, the family recognized the need for obstacle free, user-friendly ways of treating and supporting those who suffer from depression and other such disorders. With a focus on Nuçi's fellow musicians, the nonprofit Foundation created Nuçi's Space.
The mission of Nuçi's Space is to prevent suicide by providing obstacle-free treatment for musicians suffering from depression and other such disorders, as well as to assist in the emotional, physical and professional well-being of musicians. To accomplish this mission, Nuçi's Space actively participates in treatment, educates to destigmatize mental illness and advocates for sufferers.
Media Contact
Bob Sleppy, Executive Director, Nuçi's Space
706-227-1515
bob@nuci.org