From the Church of Satan to Key Worldwide Foundation (a target in the recent college admissions scandal), what constitutes tax-exempt status has continued to be a hot button issue in tax and nonprofit circles. Now, there’s another organization raising eyebrows: Safehouse, a Pennsylvania nonprofit corporation that hopes to open a supervised injection site, has been granted tax-exempt status by the Internal Revenue Service (IRS).
Safehouse describes itself as “motivated by the Judeo-Christian beliefs,” noting that “At the core of our faith is the principle that preservation of human life overrides any other considerations.” The organization was founded to address the drug crisis, which it refers to as a “public health crisis.” As part of a range of overdose prevention services, the organization wants to offer “safe consumption and observation rooms staffed by a medical staff prepared to administer overdose reversal if needed.” Additional services would, the website goes on to state, include on-site initiation of Medically Assisted Treatment (MAT), recovery counseling, education about substance use treatment, basic medical services, and referrals to support services such as housing, public benefits, and legal services.
Safehouse hasn’t yet decided on a specific site for the facility, but the organization says it considers it a “priority to be a good neighbor.” Safehouse is targeting Philadelphia, declaring that the City of Brotherly Love is “experiencing an overdose crisis of unprecedented proportion.” According to data taken from the Office of the Medical Examiner, Philadelphia Department of Public Health, since 2009, overdose deaths in the city have risen by nearly 200%. The Mayor’s Task Force to Combat the Opioid Epidemic in Philadelphia (downloads as a PDF) found that in 2015, drug overdose deaths in Philadelphia outpaced those of other major cities, including Chicago and New York.
While Safehouse will not make narcotics or opioids available (other than those that are FDA-approved for treating opioid addiction), staff will not monitor the type of consumption by participants. And while Safehouse personnel will not place needles or administer any narcotics or opioids, staff will advise on sterile injection techniques. Those services – while available elsewhere in the world – are not offered in any program like this in the United States.
The complaint alleges, among other things, that since heroin and fentanyl are Schedule 1 and 2 (respectively) controlled substances, possession is against the law (21 USC section 844(a)). Further, under 21 USC section 856(a), it is unlawful to manage or control a place for “unlawfully manufacturing, storing, distributing or using a controlled substance.”
(You can read the complaint, which downloads as a PDF, here.)
Safehouse filed its answer on April 3, 2019. In their response, Safehouse outlined its belief that section 856 doesn’t apply – and was never intended to apply – to them. Their operations are not illegal, they argue, but instead, they are “entirely consistent with the federal government’s response to the opioid crisis.” The organization goes on to claim that the services they will offer (clean injection equipment, Naloxone access, comprehensive medical services (primary care, wound care, HIV and Hepatitis C treatment) are not only permitted by federal law but “they are expressly endorsed by Congress and federal agencies.” For example, the Department of Health and Human Services (“HHS”) and the Centers for Disease Control and Prevention (“CDC”) have expressly approved of comprehensive syringe exchange programs, and, according to Safehouse, Congress has recently clarified that federal law permits syringe exchange programs and allows those programs to receive federal funding. That Safehouse argues, “will advance — not violate — federal law and policy.”
(You can read Safehouse’s answer, which downloads as a PDF, here.)
The matter has not proceeded beyond the initial filings. So why would Safehouse apply for tax-exempt status now when its legal status may still be in limbo? For one, having tax-exempt status means donors may now safely donate money to the organization. Those who itemize can deduct contributions on their Schedule A and those who do not itemize can donate without worry: a stamp of approval from the IRS may add legitimacy. The organization is hopeful that it will also translate into a favorable verdict in court.
