Nechomas Yisroel, the haredi charity run by Asher Friedman, one of the two men behind the Lipa Schmeltzer-concerts ban, is a tax exempt organization. It pays for yeshiva tuition for students that would otherwise go to public schools. As such, it should have public records available for anyone to see, 990 forms and details of its income and spending.
But it does not.
Why? Because…
…Nechomas Yisroel (perhaps illegally, it seems) uses the church exemption and does not file yearly reports with the IRS.
Here's what a noted Christian organization, Crown Financial Ministries, says about the IRS church exemption:
In recognizing a church as a qualifying tax-exempt entity, the IRS applies the following criteria. The church must have the following.
- A distinct legal existence
- A recognized creed and form of worship
- A definite and distinct ecclesiastical government
- A formal code of doctrine and discipline
- A distinct religious history
- Members who are not members of any other church or religious order (transfer letters must confirm membership from one church to another).
- An organization of licensed and/or ordained ministers
- Ordained and/or licensed ministers selected after completing prescribed courses of studies
- Literature of their own
- Established places of worship
- Regular attendees and congregational memberships
- Regular religious sacramental and/or worship services
- Religious instruction for the young
- School
A church or synagogue does not need to have every one of these things, but it needs most of them, especially these two :
- Regular attendees and congregational memberships
- Regular religious sacramental and/or worship services
Whether Nechomas Yisroel is legal or not, it certainly should have open books and an independent, outside,verified audit that is publicly available for anyone to see – especially because there is the real possibility Friedman will divert money raised through Nechomas Yisroel to pay off some of the massive losses caused by the ban he solicited.
Perhaps the New York State Attorney General and the IRS should take note.