For years, the expanding restaurant empire of Brian and Sarah Ingram became well-known for giving cash and food to people in need, including families of slain police officers or victims of catastrophes abroad, through their charitable arm: Give Hope.
On Monday, Brian Ingram told the state Attorney General’s Office he’s dissolving Give Hope as a nonprofit. His email came after the office alerted him earlier this year that in addition to its federal nonprofit status, Give Hope was required to register as a Minnesota charity.
In an interview Tuesday, Ingram said Give Hope will continue to raise and give away money to those in need. But it’s not worth the trouble to run it as a Minnesota nonprofit, he said.
“We wanted to get rid of all the red tape,” Ingram said. “When I fly into Turkey for earthquake relief, we don’t want to have to answer all these questions. And I don’t have to hold a board vote.”
Ingram said Give Hope will be reorganized as a C corporation, or a charitable corporate entity. He won’t get the tax benefits of being a 501(c)(3), but “we didn’t get into this for tax write-offs, we just got into it to help our community.”
The Ingrams’ action came after they were sent two letters by the Attorney General’s Office telling them that if they solicit charitable donations, they need to register under the state’s Charitable Solicitation Act. The first letter, dated Feb. 20, noted that organizations that fail to register face civil penalties of up to $25,000 for each violation of the act. The second letter, dated May 9, noted that the Ingrams had not responded and asked again that they register.
On Tuesday, Ingram said those letters and a subsequent news report about them on KSTP, were not the reason Give Hope is giving up its nonprofit status.
“We’ve been in the process of doing this for a year, year and a half,” he said. “That was the plan all along.”