WRAL Investigates

'Turbulent times' for state NAACP as civil rights group loses tax-exempt status

A big blow to the state's largest civil rights organization just months before the elections. The Internal Revenue Service revoked the tax-exempt status of the North Carolina Chapter of the National Association for the Advancement of Colored People (NAACP). The revocation took place earlier this year, but was only made public by the IRS this month.

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WRAL Investigates

The state’s largest civil rights organization suffered a big blow just months before the mid-term elections. The Internal Revenue Service revoked the tax-exempt status of the North Carolina Chapter of the National Association for the Advancement of Colored People (NAACP). The revocation took place earlier this year, but was only made public by the IRS this month.

"The national NAACP has been very concerned with the state of the North Carolina NAACP State Conference for many years," Da’Quan Love told WRAL Investigates. He’s the new state executive director following an appointment from the national group.

Love is on a consulting basis to help shore up finances. He says tax returns weren’t filed for three years when Rev. Anthony Spearman led the state NAACP, prompting the IRS decision. Losing tax-exempt status means donors can’t write off money given to the organization and any money coming in is subject to taxes.

It’s the latest financial blow to the state chapter, which has been divided over financial abuse accusations and the defeat of Spearman in the latest chapter election.

"The national NAACP has launched a financial audit, a full financial, multi-year audit of the state conference as well as all the branches in the state of North Carolina to rectify these issues and get to the bottom of these challenges and ensure that this does not happen again and we’re in good financial standing," Love told WRAL Investigates.

When asked if Love had seen anything potentially criminal in the finances, he said it’s too early to say. "You know, I’m going to defer to our audit that continues to be ongoing," he said.

Despite the rough road in recent months, Love says the primary focus is the state NAACP’s longstanding civil rights mission. "We’ve got to get Black folks to the polls this November. We have the Leandro case going on. So we are very busy doing civil rights work."

"We’re giving the North Carolina state conference on the ground support to make sure they can continue to focus on the day-to-day civil rights work that impacts Black North Carolinians."

Prior to his death in July, Spearman filed a lawsuit against several members of the national NAACP. The defendants in that case recently filed a motion to dismiss, offering a copy of Spearman’s death certificate as a court exhibit.

So far, a cause of death has not been released and according to the death certificate, the medical examiner is still investigating. WRAL Investigates obtained a 911 call made by Spearman’s neighbor just days before his death reporting an armed robbery at Spearman’s home. Spearman eventually spoke to the dispatcher and said the suspect tried to hit him with the gun and took his phone. Spearman told the dispatcher the person’s name and that suspect was later arrested for that incident.  Greensboro Police have not commented on whether the robbery and Spearman’s death are connected.

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