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Local nonprofit files for 501(c)(3) as commissioners debate timing of fund transfer
Summary
Advocates say the Friends group has formed as a Tennessee nonprofit and filed for IRS 501(c)(3) recognition; commissioners debated whether to transfer restricted funds now or wait for IRS approval and asked staff to confirm statutory requirements.
Speakers at the town hall said the local nonprofit organized as a Tennessee public benefit corporation and has filed for 501(c)(3) recognition with the IRS. Commissioner Mansfield said the nonprofit has applied and that the filing is underway, but that IRS review could take several months.
Mansfield argued that the group's intentions are clear because it submitted formation documents and an IRS filing receipt; he urged beginning restoration work now under a quitclaim deed plus a reverter clause to protect the county if the IRS ultimately denies tax‑exempt status. "If they're not approved as 501(c)(3), then then then we can't give them the property," Mansfield said, but added the reverter addresses that risk.
Commissioners requested that the law director and county consultant confirm whether county policy or prior county resolutions (cited in packet language) require IRS recognition before the county may transfer property or funds to a nonprofit. They also asked the nonprofit to secure independent legal counsel if it will accept funds and manage construction.
