Secretary of State slaps Oxford House with fine

The Mississippi Secretary of State's Charities Division has ordered Silver Spring, MD-based Oxford House Inc. to cease and desist soliciting donations in the state.

The Secretary of State's office said Oxford House didn't qualify for an exemption to registering as charity in the state. Oxford House said it qualified for an exemption because it didn't intend to solicit and receive more than $25,000 during any 12 month period.

But the Secretary of State's office said a review of Oxford House's Form 990 filed with the Internal Revenue Services showed the organization received more than $400,000 in contributions and grants.

Oxford House Attorney Steve Polin said Wednesday said Oxford House and the Secretary of State have a different interpretation of the charity law.

"We didn't receive any of the $440,000 from Mississippi," Polin said. "This was on our federal taxes. We are looking into this and will work with the Secretary of State's office to try to resolve this issue as expeditious as possible."

The SOS sent back Oxford House's exemption request in April, explaining it didn't meet the criteria for an exemption. As of Tuesday, Oxford House had not registered as a charity. The filing fee is $50 to register as a charity. Polin said Oxford House submitted a $50 check April 15 for the charity registration, but the Secretary of State's office rejected it.

The SOS is slapping Oxford House with a $1,000 fine, which must be paid within 30 days unless an administrative hearing is requested.

Pamela Weaver, spokeswoman for Secretary of State Delbert Hosemann, had little comment on the order. She said the order was the result of "a complaint from the public."

"All of the information found in the cease and desist order is available to the public," Weaver said. "We won't have any comment outside what's in the order."

Weaver said all charities soliciting donations in Mississippi are required to register with the Secretary of State's Charities division, or file for an exemption. Exemptions are allowed for certain solicitations, such as some educational groups, solicitations for individuals or families in need, and for organizations that don't intend to solicit or receive more than $25,000 in donations in a year.

"You can either register as a charity, or register for an exemption, but you must register," Weaver said. "… They had not registered."

Political Editor Geoff Pender contributed to this report.

Contact Jimmie E. Gates at (601) 961-7212 or jgates@jackson.gannett.com