04/17/2026
To ensure our community receives accurate, legally grounded information, here is a line-by-line counterpoint of the claims regarding non-profit operations in Alabama, and Ozark, specifically.
Claim 1: "In Alabama, most organizations conducting business activities... are required to obtain a municipal and county business license, even if they claim to be a non-profit."
Under Alabama Code § 40-14A-1, organizations that are exempt from federal income tax under Section 501(a) are generally exempt from the Business Privilege Tax. Furthermore, most municipal "business licenses" are required for entities engaged in a trade or profession for profit.
While a non-profit might need a Zoning Permit or a Health Department Permit (if handling open food), requiring a "business license" for a group giving away free items is often a misapplication of municipal code. If there is no "pursuit of gain," there is typically no "business" to license.
Sources:
Alabama Code § 40-14A-1
🔗 https://alison.legislature.state.al.us/code-of-alabama?section=40-14A-1
League of Municipalities: "License Exemptions and Limitations."
🔗https://almonline.org/Assets/Files/34.%20License-Exemptions-and-Limitations_REVISED-01-2026.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Claim 2: "Legitimate charitable organizations... are generally required to register with the Alabama Attorney General’s Office... Charitable Trusts Section."
This claim ignores the significant exemptions listed in the Alabama Charitable Solicitations Act.
Under Alabama Code § 13A-9-71, the following are not required to register:
• Religious organizations (Churches and their integrated auxiliaries).
• Educational institutions accredited by recognized agencies.
• Small organizations that receive less than $25,000 in contributions annually, provided they do not use professional fundraisers.
Implying a group is "illegitimate" because they aren't on the Attorney General's list is a factual error; they may simply fall under a legal exemption.
Source: Alabama Code § 13A-9-71 (Exemptions from Registration).
🔗 https://www.alabamaag.gov/licensing-registration/charitable-organizations/
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Claim 3: IRS 501(c)(3) Status
"A legitimate charitable non-profit typically holds a designation such as 501(c)(3) from the Internal Revenue Service."
While many do, holding a 501(c)(3) letter is not the sole indicator of legitimacy. Let's talk about why.
A non-profit doesn't have to be an established "legacy" group to be valid; grassroots efforts are started every day by people who choose to call Ozark home. Smaller groups often operate under "Fiscal Sponsorship" (an "umbrella" arrangement) or as unincorporated associations while they build capacity. This is perfectly legal.
Sources:
IRS Publication 1828 (Tax Guide for Churches and Religious Organizations);
🔗https://www.irs.gov/pub/irs-pdf/p1828.pdf
IRS Form 1023 Instructions.
🔗https://www.irs.gov/pub/irs-pdf/i1023.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Claim 4: Relief vs. Long-Term Solutions
"While handing out free food or household items can provide short-term relief, these efforts alone do not always address the underlying causes of poverty..."
This rhetoric creates a "false choice" between emergency relief and long-term development. It indirectly puts the blame on the person experiencing hardship instead of identifying their actual needs, not the needs we think they should have. No amount of hard work and determination will ever be enough to claw anyone's way out of poverty.
Humanitarian aid follows the principle of "triage." You cannot provide an education, "job training" or "financial literacy" to children, the elderly, and everyone in between, who are currently suffering from food insecurity. Providing immediate relief is often the "bridge" that allows families to reach a place of stability where they can even consider long-term programs. President Lyndon B. Johnson said, at the signing of the Child Nutrition Act of 1966, "Twenty years ago [1946] Congress enacted and President Truman signed the National School Lunch Act. They recognized that good nutrition is essential to good learning."
Source:
Maslow’s Hierarchy of Needs
🔗 https://www.researchgate.net/publication/383241976_Maslow's_Hierarchy_of_Needs
Feeding America: "Map the Meal Gap."
🔗 http://map.feedingamerica.org/
Remarks at the Signing of the Child Nutrition Act of 1966
🔗 https://www.presidency.ucsb.edu/documents/remarks-the-signing-the-child-nutrition-act-1966
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Claim 5: Church Affiliation Questions
"It is also fair to ask whether the organization is affiliated with a local church..."
While transparency is good, a non-profit's validity is not tied to its religious or secular nature.
Anyone is allowed to ask about an organization's religious affiliations, as is their First Amendment right to do so. However, "questioning" an organization’s religious ties as a test for legitimacy is a legal minefield. Under the Alabama Religious Freedom Amendment (ARFA), faith-based groups have a constitutional right to perform charitable work without facing discriminatory hurdles or specialized vetting. The city cannot legally obstruct groups from helping our neighbors just to audit their religious credentials. ARFA is a highly respected and serious amendment to Alabama's constitution and as such, any hindrance from anyone (even those who are former civil servants) can constitute an unwinnable lawsuit. Accountability is valuable, but it shouldn't be weaponized to create a hostile environment. Prioritizing a "papers, please" culture over generosity and goodwill is what keeps vital help out of our community.
Source:
Alabama Religious Freedom Amendment
🔗 https://law.justia.com/constitution/alabama/CA-170364.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
While "accountability" sounds like a community virtue, it can easily become a barrier to entry for those trying to help our neighbors, particularly the neighbors that some would like to pretend don't exist. Legitimacy is defined by law, and because the law is sometimes just not descriptive enough, it can be confusing to interpret. What the law doesn't do is invalidate a nonprofit's mission by how long that group has been "in town." Compliance is also nuanced, with many exemptions for small, new, or religious groups, educational groups, or if it's just one person cleaning out their pantry every month to take to the local Blessing Box.
In all reality, it comes down to this -- you can choose to be a part of the problem or you can choose to be a part of the solution.
Put it simply: if you happen upon a group handing out hot meals to those in need, are you more likely to stop and interrogate them on what they're doing, why they're doing it, and demand to see their licenses and registrations like you're with the Non-Profit Police?
Or are you going to tie on an apron and offer to give them a hand?
Part of the problem, or part of the solution?
I know which I'm choosing. I hope you join me.
When a “Non-Profit” Moves Into Town: Questions Communities Should Ask
Communities across Alabama are often blessed by organizations that want to help neighbors in need. Churches, civic groups, and legitimate non-profits frequently provide food assistance, clothing drives, and other support services. These efforts can make a real difference for families facing temporary hardship. However, when a new organization suddenly appears in a community distributing free food, household goods, or other items, it is reasonable for residents and local officials to ask questions about the group’s legitimacy and long-term purpose.
First, communities should ask whether the organization is properly licensed to operate locally. In Alabama, most organizations conducting business activities within a city or county are required to obtain a municipal and county business license, even if they claim to be a non-profit. Local licensing helps ensure accountability and confirms that the organization is operating within the law.
Second, legitimate charitable organizations operating in Alabama are generally required to register with the Alabama Attorney General’s Office, Consumer Protection Division, Charitable Trusts Section, if they are soliciting donations or representing themselves as a charitable entity. This registration provides transparency about the organization’s leadership, finances, and charitable purpose. Residents can verify these registrations through the Attorney General’s office.
Another important question is whether the organization has received official IRS 501(c) tax-exempt status. A legitimate charitable non-profit typically holds a designation such as 501(c)(3) from the Internal Revenue Service. This status confirms that the organization has met federal requirements for tax-exempt charitable work and that its activities are subject to federal oversight and reporting requirements.
Beyond the legal requirements, communities should also consider the intent and long-term impact of the organization’s activities. While handing out free food or household items can provide short-term relief, these efforts alone do not always address the underlying causes of poverty or financial hardship. Sustainable solutions often involve job training, education, financial literacy, and other programs designed to help families build long-term stability.
It is also fair to ask whether the organization is affiliated with a local church or faith-based group that is motivated by a mission of service. Many religious organizations operate outreach programs based on the Christian principle of serving others and helping those in need. These efforts can be positive and meaningful when carried out with transparency, accountability, and respect for the community.
Ultimately, asking questions does not mean opposing charitable work. Instead, it reflects a responsible approach to ensuring that organizations operating within a community are legitimate, transparent, and truly working in the best interests of local families. Communities thrive when generosity is paired with accountability and when efforts to help neighbors focus not only on short-term relief but also on long-term solutions that strengthen families and the community as a whole.
