South MS dog rescue group stripped of charity status over questionable payments
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- Secretary of State revoked North Star’s charitable status and dissolved the nonprofit.
- The state office questioned $20,207 in spending and ordered repayment, plus a $5,000 fine.
- IRS return showed $67,140 in contributions and $53,035 listed as other expenses.
North Star Rescue Inc. in Lucedale has lost its charitable status with the Mississippi Secretary of State’s Office over questionable spending, the office says in a news release.
The Charities Division of the office found that the dog rescue group misspent $20,207 at Xhale Smoke Shop, GameStop, Roblox, Lash Studio, Micro Wrestling and at other businesses, a cease and desist order from the office says.
After trying for more than a year to resolve the matter, the office has ordered North Star to stop collecting donations, repay the misspent funds and pay a $5,000 fine.
But North Star’s Facebook page and website were still active Monday, listing numerous ways to donate online.
Secretary of State Michael Watson has also revoked North Star’s charitable status and dissolved the business entity. However, North Star is listed online with the Internal Revenue Service as a public charity, meaning contributions could be tax-deductible.
Amanda “Mandee” McClain, North Star’s owner and president, said in an email to the Sun Herald that she disputes the state’s findings.
“We will (be) providing everything needed despite us having a nasty break up with our secretary who handled everything,” she said. “We are trying to work through it.”
In another email, McClain said, “I’m sick over this, and we are trying to get everything figured out before we are destroyed by gossip. We absolutely do rescue animals and have literally committed our lives to doing so.”
Dog rescue money spent on fast food
McClain said she would reach out by telephone as soon as she could. She said that she does not answer the telephone number listed on the organization’s website, relying instead on Facebook and emails.
Watson’s news release said that North Star has failed to reimburse the amount misspent after being given “numerous opportunities” to do so.
Organizers founded North Star in 2022 and filed a nonprofit return with the IRS for the 2023 tax year. It showed $67,140 in contributions, with $12,995 going toward professional fees and rent. An additional $53,035 was listed as “other” expenses, including $27,295 for dog supplies. Smaller amounts were listed for travel, marketing, and vehicle and office expenses.
None of the organization’s officers were listed as receiving salaries, the nonprofit filing indicates. North Star says its mission is to save dogs from euthanasia, treating their medical conditions and finding them temporary or permanent homes.
Watson’s office began its examination of the charity in June 2024, a little more than a year after it registered with his Charities Division. North Star provided records that explained some expenses. The state in March 2025 demanded repayment of about half the original amount questioned, or $20,207.
In addition to spending cited in the news release, the state cease and desist order says thousands of dollars were spent at fast-food and other restaurants, and on coffee.
The state order also noted that officers and directors of North Star allowed cash withdrawals but failed to require receipts.
After the secretary of state’s news release went out Monday, the North Star Facebook page provided another explanation of the spending. The post said items being questioned were purchased for raffles to raise money for dogs’ medical expenses. The post asked that anyone who had won a gift basket, including a kids or beauty basket, to reach out to the organization.
The cease and desist order allows for an administrative hearing, which the post says North Star has requested.
