Colorado inclusive rec center loses nonprofit status
A recreation center in Colorado that caters to people with disabilities has suffered a financial blow. Staff are scrambling to repair the damage left by its former tax company and keep its doors open.
There are over 100,000 Coloradans in Arapahoe County with disabilities, but few places to accommodate them recreationally. Seb's Rec Center in Aurora has nearly 600 members, serving people of all ages and abilities.
Owner Keithan Holiday has worked tirelessly to grow his son Sebian's vision since his passing. In October, CBS Colorado attended an inclusive Halloween party thrown by the center.
Not long after, Holiday learned his son's dream was in jeopardy.
"We were just awarded a grant, but we couldn't receive the grant because we weren't a nonprofit entity anymore. That's how we found out we lost our nonprofit status," explained Holiday.
Before the center opened its doors, Holiday hired a company to handle their taxes. He was under the impression they were following regulations, but he recently learned of incomplete and late filings from 2019-2023.
A nonprofit that fails to file for three years in a row has its tax-exempt status automatically revoked.
Losing status as a 501 (c)(3) private, nonprofit, tax-exempt organization means Seb's Rec Center can't apply for or receive the funding or grants they've relied on to stay open. Since losing its status, Holiday says they've been awarded $30,000 they can't touch.
"We also can't participate in Colorado Gives. We've been receiving these donations for years now, and to lose them because of neglect of another person, or organization, it's just devastating," said Holiday. "But as the president, I have to take responsibility for not checking to make sure they were filed. Lesson learned."
Holiday says the process to expedite and reclaim their nonprofit status won't be cheap, but the people they serve can't afford to lose it.
"When I turned 80, they took me off the billing. Now it's free," said Leonard Roderick, a disabled veteran who works out at the rec center. "I suffer when I can't make it to Seb's. They help so many people."
16-year-old Keegan started coming to Seb's two years ago following a surgery that left him in a wheelchair. Transverse myelitis affected his spinal cord and the nerves in his legs.
"I came here to get out of my wheelchair and now I'm just getting stronger," said Keegan, who has improved enough to use leg braces. "I couldn't have done it anywhere else without wheelchair accessible machines. Keithan really pushes me and lets me work to my fullest."
Holiday says they're hoping to expedite having their status reinstated and be tax-exempt by the end of the year. If they're not able to speed up the process, Holiday worries the rec center won't survive.
He hopes the community will help them stay afloat through donations. He also says they are in need of an accountant or tax attorney that specializes with nonprofits. For more information visit sebsrec.org.
