Local Cloth Inc
Public records show a registered, tax-exempt organization in good standing.
What it says it does
Sustained by a passion for fiber, Local Cloth is a volunteer-led non-profit network of fiber artists, farmers, small- scale fiber processors, educators, and fiber enthusiasts, dedicated to growing and supporting the fiber economy in Western North Carolina and increasing awareness of and access to regional production and artisan practices.
- Income
- $413,052
- Spending
- $266,023
- Spent on programs
- 80%
- Reserves
- 6.8 months of spending
- Largest source of income
- donations and private grants, 74%
- Employees
- 0
- Volunteers
- 145
- Highest pay
- $15,660, managing director
Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Financial health
Strong: 93 out of 100. Higher than 78% of charities in its peer group (arts and culture, $250k to $1m).
Reserves
28 of 35Spendable reserves would cover 6.8 months of spending.
Debt
20 of 20It owes 0% of what it owns.
Living within its means
15 of 15Income exceeded spending by 36% of income.
Income trend
15 of 15Income rose 45% on the year before.
Spending floor
15 of 1580% of spending went to programs and raising each dollar of donations cost 4 cents.
Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Governance
Good: 71 out of 100. Higher than 47% of charities in its peer group (arts and culture, $250k to $1m).
Independent board
25 of 2511 of 11 voting board members are independent.
Conflict of interest policy
15 of 15Has a written conflict of interest policy.
Whistleblower policy
0 of 8Reports no written whistleblower policy.
Record keeping policy
0 of 7Reports no written policy on keeping and destroying records.
Board minutes
5 of 5Keeps minutes of board meetings.
Board sees the tax return
10 of 10Gave the board a copy of this return before filing it.
Pay set independently
0 of 5Reports no independent review process for its chief executive's pay.
Independent check of accounts
6 of 15Its accounts were not audited or reviewed by an independent accountant.
No reported misuse
10 of 10Reports no diversion of assets, excess benefits or loans to insiders.
Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Impact evidence
Describes programs. Its tax return describes what it does but we have found no measurable results in it.
Programs described in its return (3)
- $212,045 spent. Retail + Markets: Local Cloth operates a retail shop, online store, and regional market program that provides income-generating opportunities for fiber artists and farmers across the Blue Ridge Mountains Fibershed. Through a combination of brick-and-mortar retail, online sales, and participation in regional markets, Local Cloth connects local producers with customers, increasing visibility and access to locally made fiber goods. During the fiscal year, Local Cloth sold 6,239 items across 9 markets, in addition to ongoing retail shop and online sales. Following Hurricane Helene in September 2024, Local Cloth expanded its market presence and launched an online retail shop to sustain vendor opportunities while the physical studio underwent restoration. Retail operations are supported by staff and volunteers, including vendor participation models that allow artists to contribute time in exchange for increased commission rates. This program plays a critical role in Local Cloths mission by creating economic opportunity, supporting small-scale producers, and increasing public access to locally sourced fiber products.
- Workshops + Education: Local Cloth offers a robust educational program that includes workshops, classes, and interest groups spanning a wide range of fiber arts techniques and skill levels. Programs are designed to support both beginners and advanced practitioners, with instruction provided by regional artists, farmers, and educators. During the fiscal year, Local Cloth hosted 183 workshops, serving 1,024 participants. Programming continued despite disruptions caused by Hurricane Helene, with workshops relocated to more than 10 alternative sites across the region, including artist studios, community spaces, and partner organizations. Interest Groups met regularly, both in-person and virtually, maintaining community connection and ongoing learning opportunities. Education remains central to Local Cloths mission, increasing awareness of regional fiber systems technical skills that support artistic and economic development. Programs emphasize accessibility, collaboration, and knowledge-sharing across the fibershed.
- Membership: Local Cloth maintains a membership program that supports a growing network of fiber artists, farmers, educators, and enthusiasts across the Blue Ridge Mountains Fibershed. Membership provides access to workshops, interest groups, retail opportunities, and community resources, while fostering connection and collaboration across the regional fiber economy. During the fiscal year, Local Cloth served 750 members, including 159 new members. Membership engagement remained strong despite disruptions caused by Hurricane Helene, with continued communication, virtual connection opportunities, and in-person gatherings hosted in alternative locations during the studio closure. The Membership Committee plays an active role in welcoming new members and supporting ongoing engagement. Initiatives such as Local Cloth Cares further strengthen community support by providing care and connection during times of need. Membership serves as a foundational element of Local Cloths work, sustaining both programs and relationships across the fibershed.
Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Legitimacy checks
Is it registered with the IRS? Passed.
Listed in the IRS master file of tax-exempt organizations as a 501(c)(3) charitable organization.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
Has the IRS revoked its tax-exempt status? Passed.
Not on the IRS automatic revocation list.
Source: Automatic revocation of exemption list, Internal Revenue Service, file dated November 6, 2026.
Are donations tax-deductible? Passed.
On the IRS list of organizations eligible to receive tax-deductible contributions.
Source: Publication 78 data: organizations eligible for tax-deductible contributions, Internal Revenue Service, file dated October 13, 2026.
Is it keeping up with its IRS filings? Passed.
Most recent return on file covers the year ending June 2025.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
How long has it been tax-exempt? Passed.
Recognized by the IRS since December 2013.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
Is it in good standing with state regulators? Passed.
Not on California's list of charities barred from soliciting. Other states are not yet checked.
Source: May Not Operate or Solicit for Charitable Purposes list, California Attorney General, Registry of Charities and Fundraisers, file dated November 4, 2026.
Ratings and checks are our reading of public records, using the published method. They are not a statement about anyone's honesty. If you work for this organization, you can send corrections or results, confirm you want gifts through Veridonate, or ask to be removed from giving.