Downey Elks operating fireworks stand despite losing nonprofit status

Downey Elks was issued a permit to operate a fireworks stand despite having apparently lost its non-profit status. (Photo by Alex Dominguez)

DOWNEY — Downey Elks Lodge could potentially be operating a fireworks stand this year despite having previously lost its nonprofit status.

According to an entity status letter from the State of California Franchise Tax Board, Downey Elks Lodge 2020 is currently “not in good standing” with the Franchise Tax Board.

Additionally, the IRS website currently lists Downey Elks’ federal tax-exempt status as having been revoked on August 15, 2018 and posted April 11, 2019, with no listed reinstatement.

A person who answered the phone at Downey Elks Lodge said that the organization declined to comment, but did claim that the issue had been “resolved internally.”

If Downey Elks has lost its nonprofit status and not been reinstated, then it would no longer be eligible to operate a fireworks stand, according to the Downey Municipal Code.

Application for and approval to operate a safe and sane fireworks stand is handled through Downey Fire Department. Proof of non-profit status is one of several qualifications that applicants must submit along with their application, also including a financial statement of current year’s sales (if applicable), a current membership roster (minimum 25 members), and proof of two-year continuous history in Downey preceding the application filing.

Assistant Fire Chief Anthony Hildebrand described the process as “lengthy,” adding that it begins in October. He said that applications are thoroughly vetted prior to approval.

Eighteen permits are available annually for safe-and-sane firework stands in Downey. Although usually competitive, this was the first year that Downey Fire received fewer applications (17) than slots available, according to Hildebrand.