Council exempts St. Francis Center from county business-license requirement and allows sign without license

Beaufort County Council on June 8 granted an appeal by the St. Francis Center, concluding the county will not require that charity to obtain a county business license to secure a sign permit.

Background: St. Francis Center, a faith-based outreach organization operating a thrift shop and food and direct-assistance programs on St. Helena Island, had been asked by county business-license staff to register for a county business license as part of a sign permit application. Staff said charities typically register and, if they have unrelated commercial activity, would be taxed on that unrelated income; neighboring municipalities and the Municipal Association of South Carolina indicated charities commonly obtain a zero-dollar license for administrative contact and E-911 purposes.

Appeal hearing: At the council evidentiary hearing St. Francis representatives and volunteers testified the thrift shop activity is substantially related to the organization's charitable mission (items are sold at steeply discounted prices and many items are given away), that the center operates under three umbrella 501(c)(3) entities and religious governance, and that asking the ministry to be treated as a licensed business would chill charitable operations. Staff explained the county's ordinance exempts charities from business-license tax unless they have unrelated business income, but that registration/zero-dollar licenses are common practice for local governments.

Decision: After debate and a statement about constitutional protections for religious ministry from Councilman Dawson, council voted to exempt the St. Francis Center from the requirement to obtain a county business license and to allow the nonprofit to obtain a sign without that license; council directed staff to prepare a written order documenting the decision. Council emphasized the decision applied to this organization under the facts presented and that the county's ordinance remains in force for other charities with unrelated business activities.

Why it matters: The decision affects how the county interprets the line between charitable activity and commercial activity for small ministries that operate thrift shops and provide direct services. Council recognized the county ordinance's tax-exemption framework but concluded that, on this record, requiring a formal county business-license registration as a condition for a sign permit could be an unnecessary and burdensome step for the charity.

Speakers (first reference): Dylan Kidd (interim assistant county administrator); Brandy Husman (Business Services administrator); Sister Pamela Smith (St. Francis Center); Councilmember Mark Lawson.

Next steps: Staff will prepare a written order directing the Business Services department to withdraw the prior determination. The county clarified it can still require registration or a license where a charity has unrelated business taxable income.