News and Events

HUGS Receives 501(c)(3) Tax-Exempt Ruling

February 4, 2004 - The United States Internal Revenue Service (IRS) has granted tax-exempt status to Helping Ugandans Grow Stronger, Inc. (HUGS) under section 501(a) of the Internal Revenue Code, qualifying as a publicly-supported charitable organization as described in section 501(c)(3). The advance ruling period for this determination is retroactive to July 17, 2003. Donors may therefore deduct contributions to HUGS from their income taxes to the extent that they are gifts with no consideration received.

In order to gain a favorable determination, HUGS was asked to provide details of its operations that would ensure oversight of funds supplied to organizations in a foreign country. "We were successful in demonstrating processes of accountability to the IRS, and we are very pleased that the ruling came so quickly after we supplied the information.", said Lawrence Gibson, Chief Financial Officer of HUGS.

Copies of the IRS determination letter are available from HUGS upon request. Status can also be verified by contacting the IRS at 877-829-5500.