Stillwater's Zephyr Theatre hasn't filed necessary documents to raise money and ask for donations
STILLWATER, Minn. -- There are questions about how a nonprofit is operating after being told a year ago it can't solicit funds.
The Zephyr Theatre in Stillwater operates under a 501c3 nonprofit status. But it hasn't filed the necessary documents with the Attorney General's office to raise money and ask for donations.
The theatre is a draw in downtown Stillwater. The website says it's been home to numerous productions like musicals, concerts, recitals and gallery openings and more. During COVID it transformed its parking lot into an ice palace maze.
The theatre is operated by a non-profit called Only A Dim Image Productions. It's a 501c3 charity recognized by the IRS. And it's registered as active with the Secretary of State's Office.
But there's a problem. It hasn't filed its required 2019 or 2020 annual report with the state Attorney General's Office. So last October the AG's office sent the non-profit this letter saying in part, "its registration has been withdrawn" and "it is a violation of Minnesota law to solicit in Minnesota without being registered."
After calling the executive director and board of trustees chair, WCCO went to the theatre to get answers to understand what's going on. With questions about didn't file the documents and why it continued to solicit funds. We met briefly with the executive director and the board of trustees chair inside. They told us they're working on information to give us.
"If this were a shorter period of time since they received these letters it would be less worrisome to me," non-profit attorney Emmett Robertson with Rubric Legal LLC said.
Robertson said the charity can't legally accept funds.
"There are civil and criminal penalties that apply if you are directly intentionally violating state law," Robertson said.
The website lists sustaining members giving monthly donations. Robertson advises donors to ask questions.
"To me, that's a yellow flag about what is that organization doing overall," Robertson said.
According to documents, to get back into compliance, the charity would need to file the reports. Then pay a $25 fee, plus a $50 late fee for each year.
On Friday evening Zephyr Theatre sent out a press release announcing the resignation of its executive director.
"We, as an organization, are currently finalizing a plan to return The Zephyr Theatre to financial health and stability. Thank you to our supporters for their continued support as we move forward," the organization said in a press release.
We'll continue looking into this and will update you when we hear back.
