CharityWatch's rating of Center for Community Change Action is for the 501(c)(4) tax-exempt, social welfare organization (tax ID #27-0061100).
CharityWatch provides a separate rating for Center for Community Change, the related 501(c)(3) public charity entity (tax ID #52-0888113).
CharityWatch separates the ratings for 501(c)(3) & 501(c)(4) organizations, even when their financial activities are included together in a combined or consolidated audit, due to their differing treatments under the IRS tax code. For more information on this topic, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found on the Our Process page. For more information about things to consider when donating to organizations that have related public charity and social welfare entities, read "Sorting Out Nonprofit Pairs" in the Articles & Alerts section, below.
According to the Center for Community Change Action (CCCA) audit of September 30, 2020 (Note 6, Related Parties):
"The Center for Community Change (CCC) is a related, tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, whose purpose is to help low-income people, especially low-income people of color, develop the power and capacity to improve their communities and change policies and institutions that affect their lives.
"CCCA and CCC share office space and an Executive Director; however, the criteria for financial combination (significant influence/control and economic interest) have not been met; therefore, the financial activities of the organizations are not combined [in the audited financial statements].
"CCCA reimburses CCC for salaries [and] other administrative costs... CCC reimburses CCCA for program expenses paid on CCC's behalf, and leases office space from CCCA."
"During the years ended September 30, 2020 and 2019, CCCA granted CCC $100,000 and [$]0, respectively. CCC did not make any grants to CCCA..."
"During the year ended September 30, 2016, CCCA assisted in the creation of four (4) SuperPAC entities. As CCCA does not control (or exercise significant influence over) these entities, the financial transactions are not combined with those of CCCA [in the audited financial statements]. During the years ended September 30, 2020 and 2019, $240,000 and $1,045,500 was transferred to the SuperPAC entities (for political expenditures to be incurred by these entities), respectively."