The North Carolina NAACP had its tax exempt status revoked by the IRS according to numerous media reports.

The tax exempt status was revoked because the NC NAACP failed to file tax returns for three years.

An article in the News & Observer states, “Much of the conflict gripping the NC NAACP involves criticism, including financial mismanagement allegations, directed at the late Rev. Anthony Spearman, who led the NC NAACP from 2017 to 2021.”

Spearman, who was also a member of the Guilford County Board of Elections, was found dead in his home on July 19 in what one 911 called described as an extremely bloody scene.  The Guilford County Sheriff’s Department has not released a cause of death and the case is reportedly still under investigation.

Spearman had been accused of failing to transfer financial records to the new president of the NC NAACP, Deborah Maxwell.  Spearman had contested the results of the election in which Maxwell had defeated Spearman.

The national NAACP revoked Spearman’s membership in February reportedly because he failed to turnover financial records and other documents when he left office.

The national organization had also placed the NC NAACP under administratorship in 2019 which meant the national organization appointed administrators who took over the operation of the NC NAACP.

Spearman had also filed a lawsuit against national and state NAACP officials in June.

The revocation of the tax exempt status of the NC NAACP means that donations to that organization are not tax deductible which could have a serious negative impact on fundraising.

The News & Observer article states, “Organization bank statements reflect years of payments made to unidentifiable parties, with hundreds of thousands of dollars unaccounted for, according to the group’s current treasurer.”

There have been several calls for an independent audit of the finances of the NC NAACP.