About Experts Sitemap - Group 38 - Page 39 2016-02-09

Nonprofit Law: coaches travel reimbursement
The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses when determining what is a valid business expense for an ordinary business. For example, at http://www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: davis-stirling for 501(c)(3)
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. The Davis-Stirling Act is a State law of California. Anyway, I will direct you. Davis-Stirling Rewrite. In 2012, a Davis-Stirling...

Nonprofit Law: Directors' expense reimbursement
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Nonetheless, I gave you some information about reimbursements. But, as to your specific situation, I would not be giving...

Nonprofit Law: Donating to a 501(c)(3) I am President and Executive Director Of
As to limitations on charitable deductions, see IRS Publication 526 Charitable Donations which is available at http://www.irs.gov/pub/irs-pdf/p526.pdf on the right column of pdf page 14 and the limit depend upon whether the 501(c)(3) organization is a private...

Nonprofit Law: Entry Fees for 501c3 event by outside entity.
Well, it appears from what you wrote that you are concerned with the registration fees that have already been paid and maybe in previous years. I would need to see the actual path of those fees and whether they were, at least for some time, held in an account...

Nonprofit Law: Fees vs. donations for youth sports clubs
The issue is similar to tuition. For details see www.irs.gov/pub/irs-tege/eotopice96.pdf which has examples of donations to schools that might be not deductible as they appear to be tuition payments. Especially note on page 2: ---Start of Excerpt-- However,...

Nonprofit Law: Fiscal Sponsorship
See www.irs.gov/irm/part7/irm_07-025-004.html#d0e234 --- Start of excerpt --- IRC 528... provides an elective exemption for certain homeowners associations that are described in IRC 528(c). This Code provision was enacted because many homeowners associations...

Nonprofit Law: Gifts vs in-kind gift
It appears that the donor did not consult competent legal counsel before spending funds for the fund-raiser. The only way that the IRS allows the 501(c)(3) organization to give an acknowledgement of donation is if the person spends funds while he or she is...

Nonprofit Law: gymnastics booster
Revenue Ruling 56-304 has: --- Start of Excerpt --- Organizations privately established and funded as charitable foundations which are organized and actively operated to carry on one or more of the purposes specified in section 501(c)(3) of the Internal...

Nonprofit Law: Is it legal to make donation mandatory?
A 501(c)(3) organization may charge people fees to become members, and often those fees are deductible by the members. As to charitable deductions, see IRS Publication 526 Charitable Donations which is available at http://www.irs.gov/pub/irs-pdf/p526.pdf...

Nonprofit Law: Missions Trip Fundraisers
Donations you receive are not income so you don t declare those on your individual tax return. The Internal Revenue Code at section 102(a) provides that gifts are not income. Gross income does not include the value of property acquired by gift... http://codes.lp.findlaw.com/uscode/26/A/1/B/III/102...

Nonprofit Law: misuse of donation
I suggest you send a demand letter to the organization (for the $5000) and specify that if they do not pay you would take legal action that would prove more expensive to them. If you live in the same county as them you would find it easy in small claims court....

Nonprofit Law: multiple checking accounts
If the checking account has the same EIN (Employer Identification Number - or Taxpayer Id number) as the 501(c)(3) organization and has been approved for set up by the board of directors of the 501(c)(3) organization, then that is considered in the total financial...

Nonprofit Law: New Exec Dir trying not to hurt the company
Well, generally, organizations would want to keep the facts of the fraud or other illegal activities from the public, especially potential donors, even though the new management has taken over (you have taken over). That is not a legal issue, though, and...

Nonprofit Law: Non Profit behaving like a For Profit
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Many of your questions are very specific and I would need to gather more information before I could give definitive answers....

Nonprofit Law: Not For Profit Aalaries
If a nonprofit has received IRS exemption and files annual returns (Form 990) with the IRS it has an obligation to provide anyone with certain copies. See FAQs About the Exempt Organization Public Disclosure Requirements http://goo.gl/CjGc3 You can see...

Nonprofit Law: revoking 501(c)3 status
1. A church, whether having received a determination letter from the IRS or one that has not, both have the same filing requirements. The IRS only requires returns if they have unrelated taxable income. http://goo.gl/S83dYI 2. No. See the first sentence...

Nonprofit Law: Starting a 501(c)3
If you want donors to be able to deduct donations and not to have your sales income, if any, taxed as long as you comply with fundraising guidelines for 501(c)(3) organizations, you would need to establish a charitable trust, incorporate under a state...

Nonprofit Law: 501(c)(3) - Deduction of Unreimbursed Expenses
I am assuming that you are a volunteer and are not seeking deferred compensation from the organization for your services to the organization. The proper procedure would be that you obtain from your Board a resolution as to the travel expenses being valid...

Nonprofit Law: 501(c)3 regulations
A public charity when earmarking funds to a public school for the benefit of an individual, the public charity must follow Revenue Ruling 56-304, which I cited to earlier, because it is functionally giving a grant to benefit an individual. The IRS treats grants...

Nonprofit Law: 501c3 vs 501c7
My summary of IRS regulations relating to 501(c)(3) booster organizations is at http://goo.gl/IdQwML and I have a concern that your organization would not qualify as a 501(c)(3) organization because you wrote dancer s which is singular. If each family is...

Nonprofit Law: Letting an organization use my 501
I strongly advise a written contract between the 501(c)(3) organization and the individual as to rights and responsibilities. Note that, in any case, your Board of Directors is responsible to the IRS as to any activities. Harvey Mechanic Attorney at...

Nonprofit Law: non-profit board to vote on disbursement
See http://codes.lp.findlaw.com/incode/23/17 which is the Indiana Nonprofit Code as revised, 2014 and we see at § 23-17-12-1 that the Board of Directors has the authority over all aspects of the nonprofit corporation. Therefore, unless there is something...

Nonprofit Law: non profit expense
Yes. That is allowable. Actually the IRS looks favorably at organizations that lessen the burdens of governmental agencies. See the IRS internal publication at https://www.irs.gov/pub/irs-tege/eotopicl84.pdf Harvey Mechanic Attorney at Law Harvey108@hotmail.com...

Nonprofit Law: Nonprofit Law/Is a new Federal EIN needed? Update since last Response?
No, I have not seen anything in 2014 or 2015. Harvey Mechanic Attorney at Law Harvey108@hotmail.com P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client...

Nonprofit Law: Sale of item with company logo
When an exempt organization sells such items they are not considered to be unrelated business, because the primary purpose (besides the desire to gain funds) of such logo merchandise is to promote the organization and to bring the members more into the society...

Nonprofit Law: Setting up property under church ministry.
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your questions are not about federal exemption but about property ownership issues and personal control, which are issues...

Nonprofit Law: 501(c)(3) Members
Individuals are not tax-exempt either and the IRS, therefore, would treat the situation the same when there is a sole member who is an individual and a sole member that is a nonprofit corporation or nonprofit unincorporated association (what you referred to...

Nonprofit Law: 501(c) Membership Gift
501(c)(3) booster organizations like other 501(c)(3) organizations may have memberships and provide something in return for paying members, such as socks, but the value of the socks and any other tangible benefits of membership are not deductible as charitable...

Nonprofit Law: Charitable Remainder Unit Trust
When we set up a CRUT with a major charity, like a State University, or other University, we are not concerned about the fiscal responsibility and whether the stream of promised payments would continue to come, as required in the contract. You have a situation...

Nonprofit Law: Gifts to volunteers from a 501(c)(3)
The IRS explains at http://www.irs.gov/pub/irs-pdf/p5137.pdf on page 87. A volunteer is an employee under common law if an entity has the right to direct and control the volunteer s performance, not only as to the results to be accomplished, but also as to...

Nonprofit Law: how to handle earmarked donations
I suggest that you do not want to engage in such activities. If you are still wanting to do it you may charge them a fee but may not give them donation receipts. I think that you should inform the person that your organization operates and puts in its staff...

Nonprofit Law: Nonprofit to a Church nonprofit
If the organization is going to act as a church (with regular meetings of unrelated persons), then it would want to file with the IRS another Application for Exemption, this time completing not only the main application but also Schedule A, which is for churches....

Nonprofit Law: Is it possible to set up contracts between an organization and those fundraising?
You wrote that the IRS recently examined the Scrip program. The most recent ruling that I am aware of was in 2009 and contained these facts: --- Start of excerpt --- Taxpayer is an individual who purchases scrip from an organization described in § 170(c)...

Nonprofit Law: Real Estate with a non-profit
You would have to inquire from the bank as to what type of organization they are allowed to donate property to. Most banks may only donate to a 501(c)(3) organizations or governmental instrumentalities according to their internal regulations or government...

Nonprofit Law: Travel Team Checking Account
Each bank has their own procedures, but, at a minimum your group would need to obtain from the IRS a EIN (Employer Identification Number - or Taxpayer Id number) with Form SS-4, which you can do online. Instructions for Form SS-4 are at http://www.irs.gov/pub/irs-pdf/iss4.pdf...

Nonprofit Law: 501 (c) (3) director compensation
The Idaho Nonprofit Corporation Act is available at http://law.justia.com/codes/idaho/2015/title-30/chapter-30 and specifically the part 6 is about the Direcotors and Officer and that is available http://law.justia.com/codes/idaho/2015/title-30/chapter-30/part-6...

Nonprofit Law: church and brewery
A parent holds all of the shares of stock of a C corporation subsidiary. The relationship protects the church, when all of the normal corporate formalities are followed by each organization. Arms-length transactions would be followed also, for example if...

Nonprofit Law: Grants to Others
As long as none of your directors or their families have a financial interest in the music camp that is not qualified as a 501(c)(3) organization, your group may give a grant to support the tuition and ancillary fees for the children to attend the music camp....

Nonprofit Law: Opting out, grants, uniforms and general guidance
Yes. If parent opt outs of benefits for their child that would be effective for your organization. Sale of uniforms is not an issue of unrelated business taxes because that is related to your exempt functions. As for travel expenses of the gymnasts...

Nonprofit Law: Rabbi Trust & Form 1041
A law review article published by the University of Virginia law school explains in a footnote Trusts that qualify as rabbi trusts are effectively disregarded for federal tax purposes, as their income is reported by the employer. http://goo.gl/FOoEmk (page...

Nonprofit Law: Removal of Board of Director
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: team sponorship and coaches uniforms for CYO basketball
Often I am asked about equipment or clothing. A 501(c)(3) organization may purchase such items and issue them to players but must get them back after the season is over. A shirt for the coaches may be such a low-cost item that they could keep them. Harvey...

Nonprofit Law: 501C3 Booster Club question
For those families who do not join your organization may collect fees from them to cover those costs but keep their accounts separate from the booster club organization, but the main point is that, if you grant the workers (fundraisers) $100, you would also...

Nonprofit Law: 501c3 Conversion from PF to PC
1. A private foundation may provide direct services and then it may be classified by the IRS as a private operating foundation. See IRS Publication 557 Tax Exempt Status for Your Organization which is available at http://www.irs.gov/pub/irs-pdf/p557.pdf...

Nonprofit Law: Allowable Expenses reimbursed for non profit 501c3 organizations.
The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses when determining what is a valid business expense for an ordinary business. For example, at http://www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: Assumed Names/Unincorporated
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. But, generally,...

Nonprofit Law: Booster Club
As long as the school s general booster club agrees, you may raise funds for only your sport -- just so it is exclusively benefiting the students. My summary of IRS regulations relating to 501(c)(3) booster organizations is at http://goo.gl/IdQwML and you...

Nonprofit Law: How to change status of community theater org. to public charity
It does not appear that the freelancer is an expert . Anyway, you would not want to wait for the normal IRS process for reclassification from a private foundation to a public charity because that would take 5 years and cost you. That is shown as i. Termination...

Nonprofit Law: corporate giving program
In the situation you propose, your LLC is promoting the sales and handling the proceeds and not giving the purchasers an option to donate. A charitable contribution must be made voluntarily and with donative intent. U.S. v. American Bar Endowment, 477 U.S....

Nonprofit Law: Deductibility of Donations
Generally not as long as there is benefit to their property from your services, and it appears, from you wrote, that there is such benefit that is substantial. Such activities by the 501(c)(3) organization also jeopardize their exemption as private benefit...

Nonprofit Law: Donation made outside of the country
See the IRS publication at http://www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and international activities of U.S. exempt organizations, and, especially page 2-4 about grants to foreign individuals: --- Start of excerpt ---...

Nonprofit Law: Elections - Open & Closed Meetings
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matters are controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Establishing a Mexican non-profit for a US law school
See IRS Publication 526 Charitable Donations which is available at http://www.irs.gov/pub/irs-pdf/p526.pdf --- Start of excerpt --- Under the U.S.-Mexico income tax treaty, a contribution to a Mexican charitable organization may be deductible, but only...

Nonprofit Law: Failure to Spend Non-profit Donations As Earmarked
First I will inform you that people who give donations to U.S. charities who instruct that certain funds sent to a foreign charity are not allowed any tax deduction on their U.S. taxes for that amount. See the IRS publication at http://www.irs.gov/pub/irs-wd/0504031.pdf...

Nonprofit Law: financial disclosure
The form 990 asks certain questions that might relate to a vendor, especially if the vendor is related to any of your insiders or if the vendor is receiving annually a large amount, like at least $50,000. Other than that, I suggest that you look through the...

Nonprofit Law: foreign non-profit company owned by US entity
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. See www.irs.gov/pub/irs-tege/eotopick92.pdf starting on the bottom of page 4 under the heading 2. Foreign Organizations...

Nonprofit Law: Fundraising for non for profit school
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming you are referring to such an organization. The first question is whether the activity would...

Nonprofit Law: gifts from 501(c)3 to individual
No. See pdf page 13 of http://www.irs.gov/pub/irs-pdf/p3833.pdf under the heading Charitable Class --start of excerpt --- The group of individuals that may properly receive assistance from a charitable organization is called a charitable class. A charitable...

Nonprofit Law: Incorporated Family Organization
If you want donors to be able to deduct donations and not to have your sales income, if any, taxed as long as you comply with fundraising guidelines for 501(c)(3) organizations, you would need to establish a charitable trust, incorporate under a state s nonprofit...

Nonprofit Law: Pass through donations
It appears from what you wrote that your organization was legally obligated, like an agent, to pass on the full amounts to the other nonprofit. Therefore, your organization would legally be able to give the acknowledgment of donation to the donors only if...

Nonprofit Law: Preventing revocation of 501(c)(3) Exemption
Sometimes, when a new board and management comes in, I advise them to act correctly in the future and not deal proactively with past issues, but sometimes I would advise otherwise. I have in my profile that this free forum is only for general questions about...

Nonprofit Law: Refunds for estimated fees
I am assuming from what you wrote to me that the organization is not a private foundation (you can confirm that on the IRS determination letter). There is no restriction for one or two years of accumulation of funds. However, if you do it for many...

Nonprofit Law: 501(c)(3)-Donations or Expense
You asked that you want to give scholarship money . The word give indicates that it is an expense. Note, that, for scholarships the IRS has published: --- Start of Excerpt --- Generally, distributions made to individuals may advance educational ...

Nonprofit Law: 501 (c) 3 "Scholarship" criteria
Those are mostly prizes and awards, not scholarships. The IRS only refers to scholarships in the context of educational purposes within an educational institution . In their Publication 970 the IRS has, A scholarship is generally an amount paid or allowed...

Nonprofit Law: 501c3
A 501(c)(3) organization is not in any person s name unless you are the only member of the Board, because the Board controls a 501(c)(3) organization. No one owns as 501(c)(3) organization. If you check with the State of West Virginia you will find out...

Nonprofit Law: Bank account for youth sports team a part of a larger 501c3
The team treasurer may have to explain to the IRS some time later, if audited, as to the reason for the payments. The YSO would also need to keep records as to its grants to the individual, as it will appear to be a grant to an individual (the Volunteer ):...

Nonprofit Law: Booster Club
As to charitable deductions, see IRS Publication 526 Charitable Donations which is available at http://www.irs.gov/pub/irs-pdf/p526.pdf on page 4, first column, You may be able to deduct membership fees or dues you pay to a qualified organization....

Nonprofit Law: Business or Volunteer
A Forbes article describes Form 1099-K. http://goo.gl/1m7gZf and, as any other tax information return, the form would indicate the payee by a social security number or EIN (Employer Identification Number - or Taxpayer Id number). Therefore, it is not so important...

Nonprofit Law: Changing accounting methods
To change your accounting method you would file Form 3115 which is available at http://www.irs.gov/pub/irs-pdf/f3115.pdf You are not required to wait for any IRS permission after you file that Form. From the instructions: --- Start of excerpt --- A Form...

Nonprofit Law: Commissions paid to 501 c 3
A conflict of interest is present whenever a director, and in some states an officer) or a close relative of that person has a material personal interest in a proposed contract or transaction to which the 501(c)(3) organization may be a party. Some conflicts...

Nonprofit Law: directed funds
I am assuming the businessman is not financially tied to the advertising business or Race car event. In any case, in a 2002 internal memo, the IRS wrote, The Service s longstanding position is that an EO [exempt organization] receives a charitable contribution...

Nonprofit Law: donations for mission trips
If the mission almost always accepts the suggestion then practically it is the same as the individual donor requiring the funds to to an individual. Therefore, in that case, it would not be deductible as a charitable donation by the donor, either. But, otherwise,...

Nonprofit Law: Electronic Voting by Non-Profits in NY
There is no prohibition of electronic voting in the Not-for-Profit Corporation law and, therefore, the bylaws of the organization control as to the manner of voting: --- Start of excerpt --- A court acting pursuant to section 618 of the Not-For-Profit Corporation...

Nonprofit Law: FUND RASING YOUTH TRAVEL SOFTBALL
No, but then the businesses and other sponsors would not be able to take a deduction for charitable donations. If you want donors to be able to deduct donations and not to have your sales income, if any, taxed as long as you comply with fundraising...

Nonprofit Law: Gifting a Parsonage to the retiring Pastor
Internal Revenue Code section 501(c)(3) which is available at http://goo.gl/7lFll (on page 2, first column) provides, in part, that the 501(c)(3) organization must be one of Corporations, and any community chest, fund, or foundation, organized and operated...

Nonprofit Law: Gymnastics booster club operating as a 501c3
If by donation in lieu or selling raffle tickets you mean that the organization is giving the parents a donation receipt, your organization is in violation of IRS regulations for 501(c)(3) organizations because that is not a donation. It is actually fees...

Nonprofit Law: loan to pastor
The commercial rate of interest is fine, but I do not believe that filing a lien would mean that the church would be adequately secured as that term security is used in the real estate financing business, because your loan to value ratio is 100% and that...

Nonprofit Law: Member Forfeited Funds
Certainly it is acceptable for a 501(c)(3) organization to grant funds to a youth gymnast, notwithstanding that she left the team last year or was not even on the team. The only issue now is about this year. As to both of your questions, a youth team...

Nonprofit Law: Merging with a 501 c3 Club
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming you are referring to the larger nonprofit as such an organization. I am also assuming from...

Nonprofit Law: Non Profit donations to other nonprofits
The middle column, that I referred you to is column two and down that column is that part Grants from public charities. That is the only section relevant to your question. Harvey Mechanic Attorney at Law Harvey108@hotmail.com P.S. This response...

Nonprofit Law: Non profit service fees
Ok, that is favorable. The IRS looks at other factors also, for example, how much the business will depend upon donations and public control of your board to insure that you would not be receiving personally more than reasonable compensation for your services...

Nonprofit Law: non-profit status vs broker status
The word broker is applicable to the situation that you described because the nonprofit does not take ownership of any of the horses, but, instead, helps the owner to match up with a buyer. But your subject heading is non-profit status vs broker status...

Nonprofit Law: Nonprofit - Minimum labor payment not reported or taxed
An organization does not lose its nonprofit status by having employees or independent contractors. The rules are different depending upon whether the workers are employees or independent contractors. The rule as to $600 is simply a rule stating that payments...

Nonprofit Law: NYS not for profit sale of real estate
If your club is incorporated under the New York Not-for-Profit Corporation (NPC) law then such a sale, according to section 509 of NPC law requires 2/3 approval. http://law.justia.com/codes/new-york/2013/npc/article-5/509/ Also see section 510 for some details....

Nonprofit Law: Pass through contribution
In a 2002 internal memo, the IRS wrote, The Service s longstanding position is that an EO [exempt organization] receives a charitable contribution where it has full control and discretion as to the use of donated funds, but not where the donor earmarks...

Nonprofit Law: Property transfers
See http://www.irs.gov/pub/irs-pdf/p3833.pdf starting on pdf page 13 as to the discussion of Charitable Class --start of excerpt --- The group of individuals that may properly receive assistance from a charitable organization is called a charitable class....

Nonprofit Law: Retailer gift card
The Internal Revenue Code at section 102(a) provides that gifts are not income. Gross income does not include the value of property acquired by gift... http://codes.lp.findlaw.com/uscode/26/A/1/B/III/102 However, section 102(c) of the Code has Subsection...

Nonprofit Law: Tax Exemptions on Phone Service
Only if it is a certain type of nonprofit organization. Federal excise taxes and common exemptions are discussed at: http://www.acquisition.gov/far/html/Subpart%2029_2.html Certain tax-free sales is at 26 U.S.C. § 4221 which has: ---End of Excerpt---...

Nonprofit Law: 501 (c) (3)
A 501(c)(3) organization must have already in its articles of incorporation certain clauses mandated by the IRS. See IRS Publication 557 Tax Exempt Status for Your Organization which is available http://www.irs.gov/pub/irs-pdf/p557.pdf discussed starting...

Nonprofit Law: 501(c)(3) booster club exemption
Those are not new rules but, in any case, a family may certainly opt-out. There is no form but a sentence is sufficient, such as I, parent of John Doe, do not want ABC Booster Organization to fund my child or grant any benefits to my child. Have the parent...

Nonprofit Law: 501c3 inactive
The IRS grants two types of 501(c)(3) organization status to religious organizations. One is for churches and one is for other religious organizations. It appears from what you wrote, that the organization received from the IRS determination letter that...

Nonprofit Law: 501c3 incorporation fees and initial start-up funds
I suggest that you treat the funds as a no-interest loan to the entity. That loan is later ratified by the board and after you are paid paid the amount that you loaned for the preformation costs and for the start-up costs, then you can donate the same amount...

Nonprofit Law: 501C6 ability to provide scholarships
Well, if you send me the url for that 2007 answer or the full text of it, I will be able to comment on it specifically, but I do not know of any changes in the IRS regulations since that time as to a Chamber of Commerce creating a scholarship funds. Harvey...

Nonprofit Law: 503c7
You are referring to a social club and social clubs do not qualify for 501(c)(3) organization status nor are able to accept donations that are deductible by the donors as charitable donations. http://www.irs.gov/irm/part7/irm_07-025-007.html Such an...

Nonprofit Law: award scholarship to undocumented high school graduate
There is no federal law prohibiting a 501(c)(3) organization from assisting persons who are considered by US Immigration and Customs Enforcement (ICE) to not be in the United States in legal status (so-called undocumented persons). The IRS does prohibit...

Nonprofit Law: booster club fundraising
My summary of IRS regulations relating to 501(c)(3) booster organizations is at http://goo.gl/IdQwML and you should first to read that. The for-profit gym is engaging in conspiracy with the 501(c)(3) booster organization to evade federal income taxes if it...

Nonprofit Law: Booster club Revenue question
The booster organization may pay half of the meet fees. My summary of IRS regulations relating to 501(c)(3) booster organizations is at http://goo.gl/IdQwML and you may be interested to read that. Harvey Mechanic Attorney at Law Harvey108@hotmail.com...

Nonprofit Law: Changing my nonprofit to a foundation
The word foundation has no particular meaning in reference to exemption issues. There is, however, a term private foundation . From what you wrote I am assuming that your organization received a determination letter from the IRS that it is exempt from...

Nonprofit Law: Defraying the costs for competitve wear for gymnasts
Inurement (benefits to insiders) is discussed by the IRS at http://www.irs.gov/pub/irs-tege/eotopicc90.pdf and specifically note, on the bottom of page 10, even a minimal amount of inurement can result in disqualification for exempt status, whereas private...

Nonprofit Law: Dissolution
It would be relevant when the church property that is in the founder s name was acquired and whether, at that time, church funds were used at least in part for the purchase or mortgage payments, if there was any mortgage. If so, then we could file an action...

Nonprofit Law: forming our Scout troop into a 501(c)(3)
The easiest way to set up a 501(c)(3) organization (and, it happens to be for no cost) is to use the charitable trust form in IRS Publication 557 Tax Exempt Status for Your Organization which is available at http://www.irs.gov/pub/irs-pdf/p557.pdf on page...

Nonprofit Law: Fundraising profit dispensing
There are no IRS regulations that prohibit a 501(c)(3) organization from giving funds to a particular team based upon what that team arranges to bring into the 501(c)(3) organization unless the team is of only 2 or 3 members or a very low number. If it was...

Nonprofit Law: Grants
Right. Even if the 20 parents choose not to join, the organization should give their family the same benefits (grants) as others. They are considered like every other family even if they don t join. Harvey Mechanic Attorney at Law Harvey108@hotmail.com...

Nonprofit Law: Gymnastics Booster Club 501(c) 3
You are welcome. A 501(c)(3) organization has no responsibilities other than raising funds and distributing grants in a manner that is not prohibited, such as giving more to families that are members of the 501(c)(3) organization or work for the organization....

Nonprofit Law: Matching Funds
No. That is not a standard procedure for a matching funds grant. Normally, the grantee would not need to provide funds to the grantor organization which would then grant back double. One source explains the normal procedure, The system of policies and...

Nonprofit Law: non profit
It is not legal unless he treats that activity (tournaments) as a for-profit business activity and files returns with the IRS regarding that business. George Harrison, after the Concert for Bangladesh, found out from the IRS that he had a similar issue. ...

Nonprofit Law: non profit donating to another non profit
First I should explain that what the concession company is paying is not, under tax law, considered a donation. The IRS has written on page 1 (first column under Introduction ) in their publication 526 Charitable Donations , which is available at: www.irs.gov/pub/irs-pdf/p526.pdf...

Nonprofit Law: Non profit mailing
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Most of the issues that you raised are controlled by state law and states may differ somewhat with how they would treat such...

Nonprofit Law: Owners Involvement
The IRS would not care if that position is removed from the Board. Harvey Mechanic Attorney at Law Harvey108@hotmail.com P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create...

Nonprofit Law: Presidents authority
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Not-Profit Liability
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your question is about personal liability but I will give you some information. The only liability that an individual could...

Nonprofit Law: Question of
The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses when determining what is a valid business expense for an ordinary business. For example, at http://www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: Raffles
Raffles are controlled by State laws. This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. However, I may be able to direct you. Michigan s laws for such raffles is available at http://www.gambling-law-us.com/Charitable-Gaming/Michigan...

Nonprofit Law: Tax-Deductible Construction Expenses
As to charitable deductions, see IRS Publication 526 Charitable Donations which is available at http://www.irs.gov/pub/irs-pdf/p526.pdf and specifically, as to volunteer services, see at the top of page 5 there is a chart Table 2 that shows that a taxpayer...

Nonprofit Law: Tax Liability for a charitable fund
From what you wrote, it appears that the fund that you set up did not have any organizational document like articles of incorporation or charitable trust declaration that would be required to make it qualified to be treated by the IRS as a 501(c)(3) organization...

Nonprofit Law: tax liability on dividends for non-profits
Section 512 of the Internal Revenue Code provides for exempt organizations, (5) There shall be excluded [from federal unrelated business taxes] all gains or losses from the sale, exchange, or other disposition of property [exceptions then listed which do...

Nonprofit Law: transfer of 501c3 designaion
Exemption is granted by the IRS to a particular entity which has a particular EIN (Employer Identification Number - or Taxpayer Id number). Exemption may not be transferred to another entity. However, the board of directors of the exempt organization may,...

Nonprofit Law: Transfer of Authority Within an Organization
I would need first to know whether the organization that was granted 501(c)(3) organization status and has the leftover funds is a nonprofit corporation, charitable trust or an unincorporated nonprofit association and then I will answer further. Harvey...

Nonprofit Law: Treasurer - Board of Directors
That treasurer would not have a conflict of interest unless he or she or a close relative has a financial interest in the for-profit gym. A conflict of interest is present whenever a director, and in some states an officer) or a close relative of that...

Nonprofit Law: violation of practice
If you put your request to them in writing then the proper amount of time, because nothing is specifically mentioned in the regulations, would be what is a reasonable amount of time, which I believe to be one week (unless, for example, it is a very small organization...

Nonprofit Law: Volunteer reimbursement
Good for you. As long as the request for reimbursements are directly related to the grooming, the reimbursements are required to be paid to you. That letter from the past president may or may not be a correct interpretation of the organization s real rules...

Nonprofit Law: Youth Athletic Association
Yes, you would be getting W-9s unless you have employees and, in that case, you would complete for W-4 withholding forms for each employee. Those forms are available at http://www.irs.gov/pub/irs-pdf/fw4.pdf Usually umpires and referees for youth sporting...

Nonprofit Law: 501(c)(3) vs. US Constitution
No. A public educational association s constitution & bylaws can not supersede the US Constitution. First we would note the definition of supersede is to set aside or cause to be set aside as void, useless, or obsolete, usually in favor of something mentioned;...

Nonprofit Law: 501 confusion
The tuition that the booster organization would be paying to the school community ed is not the obligation of the booster organization. The booster organization is giving a grant to the school community ed, just like the Ford Foundation or the Carnegie Foundation...

Nonprofit Law: what if you go broke starting a non-profit?
You are welcome. As I wrote, you have two choices. 1. File for a determination by the IRS that you organization is exempt as a 501(c)(3) organization, or 2. Operate as a non-exempt organization. I am assuming that your organization has been incorporated...

Nonprofit Law: change in fiscal year
The IRS does not allow a reporting year to be longer than 12 months. A change, though may result in a period shorter than 12 months and then, after that, a 12 month period. Note on pdf page 5, right column, of the IRS instructions to Form 990 which is available...

Nonprofit Law: Charity named as beneficiary of IRA
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is not an exemption issue but an issue as to donations and IRA regulations. Even though this free forum is not...

Nonprofit Law: Conflict of interest
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. There is not a problem with the IRS if you are the President/CEO as well as a psychiatrist seeing patients, as long as the...

Nonprofit Law: Discrimination based on amount of fundraising
My opinion is based upon the fact that $250 may be paid. If the family does not want to pay the $250 then they work (what you called fundraise). As I explained earlier, the organization may not be in compliance with employment tax laws but that is a different...

Nonprofit Law: earnings from 501c3 for students
My summary of IRS regulations relating to 501(c)(3) booster organizations is at http://goo.gl/IdQwML and you may be interested to read that. As to your specific question, the 501(c)(3) organization may not assist kids in working for funds that would go...

Nonprofit Law: Establishing a 501c3 at existing 501c6
See IRS Publication 557 Tax Exempt Status for Your Organization which is available at http://www.irs.gov/pub/irs-pdf/p557.pdf on page 70(footnote 2): An organization exempt under a subsection of Code sec. 501 other than 501(c)(3) may establish a charitable...

Nonprofit Law: Fundraising Campaign that Includes Personal Stories
There is no IRS regulation prohibiting solicitation of funds by a 501(c)(3) organization using a fanciful story or a story that is real but without enough information to determine the identity of the person. It is a fact that: --start of excerpt ---...

Nonprofit Law: Gymnastic Booster Club
Yes. The IRS has taken a position that [a]n organization may be educational within the meaning of IRC 501(c)(3) if it teaches sports to youth or by being affiliated with an exempt educational organization. Such educational organizations may also provide...

Nonprofit Law: Horse donation
The IRS has written on page 1 (first column under Introduction ) in their publication 526 Charitable Donations , which is available at: www.irs.gov/pub/irs-pdf/p526.pdf A charitable contribution is a donation or gift to, or for the use of, a qualified...

Nonprofit Law: Isolated Fundraisers
I don t know what you mean by technically . I try to avoid that term. Either something is legal or not. Here it is illegal. I explained in an earlier email the IRS treatment of assignment of income. There is no exception if the assignment is to a 501(c)(3)...

Nonprofit Law: Which Non Profit
Well, you might fit in the 501(c)(7) category, but you want to have one of the benefits that the category does not provide, deductibility for donations. That is not called a purpose under the tax law of exempt organizations. Anyway, I have read the Revenue...

Nonprofit Law: non-profit employees
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is not an exemption issue but an employment law issue (applies to nonprofits and for-profit).Even though this...

Nonprofit Law: Non-Profit Voting Rights
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Not for profit cemetery association
The U.S. Constitution applies to all persons and corporations. However, I do not know what part of the Constitution that you are referring to. If you want to cite me the sentence from the Constitution that you think that the cemetery may be violating, please...

Nonprofit Law: Public Voting in Absentia
If your articles of incorporation, bylaws and state law do not allow for proxy voting by members then it is not an authorized method of conducting an election. You wrote that the state of NC statutes makes no mention that you could find, but Chapter 55A...

Nonprofit Law: residential property use for starting a not for profit
You will lose ownership only if you execute a deed in which the nonprofit is listed as the only owner or a partial owner, but, in any case, you would be able to use the land for hosting fundraisers and other purposes that would be for the nonprofit. If you...

Nonprofit Law: Retention of voting records
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: speaking at candidate rallies
The founder of one of your campaigns has, as much as any other person in the United States, the right to speak and endorse any candidate for office. However, the founder may not, in that speech indicate that she is representing, in the speech, the 501(c)(3)...

Nonprofit Law: Volunteers and Liability Insurance Nonprofit
If the only payments or compensation anyone receipts are reimbursements for substantiated expenses then there is no employee tax reporting requirement and you would not need to register with any State employment agency. For example, the State of New York Department...

Nonprofit Law: 5013c band boosters fundraising
You would be able to form a for-profit organization but what you proposed is not qualified to be a 501(c)(3) organization. Such an operation would be what the IRS calls a cooperative. A cooperative is not qualified as a 501(c)(3) organization. A 501(c)(3)...

Nonprofit Law: 501c3 gymnastics booster club
A booster or other organization may certainly refund part of the amount that families paid, even though the money merged temporarily with other funds. Harvey Mechanic Attorney at Law Harvey108@hotmail.com P.S. This response is intended to be a general...

Nonprofit Law: 508 c1 a
See instructions to Application for Exemption www.irs.gov/pub/irs-pdf/i1023.pdf in the right column on the first page under Form 1023 not necessary discusses who does not need to file and among those is are churches. Therefore as long as the church is...

Nonprofit Law: Athletic Booster Club
Your group of 40 members appears to be composed primarily of members of families of the cheer team. Therefore, when they work they are expecting benefits to go to their family members (no fees or reduced fees). The workers, therefore, are not considered...

Nonprofit Law: Board Members Rights
Board members have extensive rights to require officers to provide them important financial and other corporate documents. For Director s Rights generally see http://bit.ly/kEelH which takes you to page 35 of a book on the subject, Guidebook for Directors...

Nonprofit Law: Church Parking Lot Depreciation
You are welcome. Associate Professor of Accounting, Frank A. Marino (CPA) has a fine 28 page introduction Handbook for the Church Audit Committee and he observes: --- Start of Excerpt --- For many churches, especially smaller ones, generally accepted...

Nonprofit Law: donation return
You certainly can ask for the donation back but the organization is not required to give the horse back unless you had some contract with them. Generally, donors give up any authority over donated items and funds, unless they had a specific signed agreement...

Nonprofit Law: expired 501(c)3
Your organization may not have updated the IRS as to a change of address. Otherwise, your officers would have received a warning. Anyway, http://goo.gl/OXum6e is where you would search to see if the organization had its federal tax-exempt status revoked...

Nonprofit Law: Non-profit budget
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Non Profit Concept
Private schools are granted 501(c)(3) organization status by the IRS as long as they are set up on the state level as a nonprofit organization and operate as a 501(c)(3) organization should. See IRS Publication 557 Tax Exempt Status for Your Organization...

Nonprofit Law: Non-profit regulators?
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations in the United States. You wrote that you are from Australia and I do not know the law of Australia. If individuals in the...

Nonprofit Law: Non profit selling realestate, sort of under the table.
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your question about a law in Texas is, of course, a state law matter and states may differ somewhat with how they would treat...

Nonprofit Law: Non-Profit Solicited & Unsolicited Funds
There is a difference in the dictionary meaning of the two phrases, but the difference has no significance in relation to IRS regulations for 501(c)(3) organizations. -- Harvey Mechanic Attorney at Law 3755 Watseka Ave Suite 201 Los Angeles, CA 90034...

Nonprofit Law: NonProfit California Church Name Change
You are welcome. Changing the name of a California Religious Corporation can be done with the instructions from the California Secretary of State which is available at http://bpd.cdn.sos.ca.gov/corp/pdf/amendments/corp-amdtnp.pdf However, from what...

Nonprofit Law: Reimbursement
My summary of IRS regulations relating to 501(c)(3) booster organizations is at http://goo.gl/IdQwML and you may be interested to read that. There you will see that there is no place for earnings for such organizations. Please clarify by explaining who...

Nonprofit Law: Rights of members of a not for profit to review contracts
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Sports Uniforms
The IRS calls what you are referring to as Earmarking by donors. From page 8 of www.irs.gov/pub/irs-wd/0530016.pdf is: ---Start of Excerpt-- The Taxpayer [501(c)(3) organization] must ensure that it maintains its discretion and control over all...

Nonprofit Law: TAX EXEMPTION
No. The U.S. Supreme Court in the Bob Jones University case ruled that a 501(c)(3) organization may not discriminate on the basis of race. ---Start of Excerpt-- Section 501(c)(3) therefore must be analyzed and construed within...

Nonprofit Law: 501(c)(7) fundraising
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Even though your question is about another type of organization, I will give you some leads. IRC 501(c)(7) exempts from...

Nonprofit Law: 501c(3) donating to a 501c(7) or for profit club
I don t know what you mean by the State Association . Is the State Association you are referring to a 501(c)(3) organization? After you give me that information I will reply further. Harvey Mechanic Attorney at Law Harvey108@hotmail.com P.S. This...

Nonprofit Law: Church providing financial help to members
I still think that the IRS opinion would count more: http://www.irs.gov/pub/irs-pdf/p3833.pdf starting on pdf page 13 as to the discussion of Charitable Class --start of excerpt --- The group of individuals that may properly receive assistance from...

Nonprofit Law: Gifts
Is the organization incorporated in the State? What subsection of section 501(c) is mentioned in the articles of incorporation or articles of organization that would limit the organization s activities. For example 501(c)(3) or 501(c)(7). In other words,...

Nonprofit Law: Lease of Donated Property
IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations at http://www.irs.gov/pub/irs-pdf/p598.pdf explains that, if products or services are not directly related to the charitable, educational, religious or other purpose or function...

Nonprofit Law: Membership Dues Not Billed/Paid
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Mission statement accuracy
If it does not file accurate Form 990s then the organization may have issues with the IRS, but other than that, under State law it may be engaged in material misrepresentation, for example if it is soliciting funds for certain projects but not using those...

Nonprofit Law: Non profit
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming you are referring to such an organization. I am also assuming from what you wrote to me that...

Nonprofit Law: non-profit donated items
Staff members are employees. The Internal Revenue Code at section 102(a) provides that gifts are not income. Gross income does not include the value of property acquired by gift... http://codes.lp.findlaw.com/uscode/26/A/1/B/III/102 However, section...

Nonprofit Law: Non-Profit Expenditures
An organization established or operating to benefit one named person is not qualified as a 501(c)(3) organization. See pdf page 13 of http://www.irs.gov/pub/irs-pdf/p3833.pdf under the heading Charitable Class --start of excerpt --- The group of individuals...

Nonprofit Law: Non-Profit Memorial Scholarship
I am assuming from what you wrote to me that the organization is not a private foundation (you can confirm that on the IRS determination letter). There is no restriction for one or two years of accumulation of funds. However, if you do it for many...

Nonprofit Law: Nonprofit Advertising
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. However, I will try to direct you to some good information. IRC 501(c)(7) exempts from federal income tax, clubs organized...

Nonprofit Law: rental income
IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations at http://www.irs.gov/pub/irs-pdf/p598.pdf explains that, if products or services are not directly related to the charitable, educational, religious or other purpose or function...

Nonprofit Law: restricted account reporting for church accounting
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. The IRS does not have any particular requirements as to methods of accounting, and only requires that good records be kept....

Nonprofit Law: Youth Sports Team
The IRS explains in the right column of page 5 that, when applying for the Employer Identification Number, the club may check a box for Banking purpose if you are requesting an EIN for banking purposes only, and enter the banking purpose (for example,...

Nonprofit Law: 1099s for recipients
Not for gifts. The Internal Revenue Code at section 102(a) provides that gifts are not income. Gross income does not include the value of property acquired by gift... http://codes.lp.findlaw.com/uscode/26/A/1/B/III/102 However, section 102(c) of the...

Nonprofit Law: 501c3 booster club
There is no good reason why the booster organization should allow the for-profit gym to make any profit on the sale of those items especially because they are getting free publicity (with their logo). If the team can not get for less otherwise, then it is...

Nonprofit Law: EIN for unincorporated youth sports group
Yes, the IRS and the courts are quite expansive in what they consider to be taxable income. A gift is not taxable to the recipient generally, but those transactions do not appear to be gifts to your people. See http://goo.gl/9wKubE Commissioner v. Duberstein...

Nonprofit Law: Former Athletes of a 501(c)(3)
A booster organization is not an athletic organization. It is a charitable organization. It does not run athletic events itself. That statement by the IRS is not simply for organizations that give funds to victims of disasters. But I should not have cited...

Nonprofit Law: Grants for Non-school activities
A booster organization may give grants to assist youth in different athletic leagues unless it has, by contract, agreed only to fund school related activities. My summary of IRS regulations relating to 501(c)(3) booster organizations is at http://goo.gl/IdQwML...

Nonprofit Law: Legal Liability
If you want donors to be able to deduct donations and not to have your sales income, if any, taxed as long as you comply with fundraising guidelines for 501(c)(3) organizations, you would need to establish a charitable trust, incorporate under a state s nonprofit...

Nonprofit Law: Non-Profit
You appear to be referring to an organization that applied to the IRS for a determination letter that it is exempt from federal income taxes as a 501(c)(3) organization. In such IRS Application for Exemption, the organization would have given a description...

Nonprofit Law: Non Profit vs Taxes
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. I am assuming that the land owner is such an organization. If such an organization rents out 1/8 (12%) of its land, that...

Nonprofit Law: Office space donation
If the utilities are metered and the donor is paying that amount then that would be considered a donation. As for the space, no. See IRS Publication 526 Charitable Donations which is available at http://www.irs.gov/pub/irs-pdf/p526.pdf especially on page...

Nonprofit Law: Open Board Meetings fro non-profit
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Profitable Ventures for 501(c)(3)
It appears that the 501(c)(3) organization would be borrowing money from a donor who would be paid back, under some contingencies, without interest. That part is fine. However, as to the venture itself, we first need to find out if the venture is related...

Nonprofit Law: Scholarships Requirements under a 501c
Holding an office and being a (voting) board member are not considered benefits but, especially when those people do not receive compensation for their work in those positions, those are considered to be the opposite of receiving benefits. They are giving...

Nonprofit Law: Stipends to volunteers
The IRS has published: --- Start of Excerpt --- A stipend is defined as a fixed sum of money paid periodically for services or to defray expenses. The fact that remuneration is termed a fee or stipend rather than salary or wages is immaterial. Wages...

Nonprofit Law: Tax Filing Requirement for Scholarship
If the grants are not going to be going to employees then you do not need to obtain the recipients social security numbers. Revenue Ruling 56-304 provides: --- Start of Excerpt --- Organizations privately established and funded as charitable foundations...

Nonprofit Law: Team Bank Accounts
As to recordkeeping, see pdf page 17-19 of the IRS Publication 4221-pc Compliance Guide for 501(c)(3) Public Charities which is available at http://www.irs.gov/pub/irs-pdf/p4221pc.pdf for on pdf page 19 we see: ---Start of Excerpt -- Except in a few...

Nonprofit Law: 501c3 Contributions to other non-profits
A 501(c)(3) organization may not contribute funds to a 501(c)(6) organization. Internal Revenue Code section 501(c)(3) which is available at http://goo.gl/7lFll (on page 2, first column) provides, in part, that the 501(c)(3) organization must be one of Corporations,...

Nonprofit Law: Balance carry over
There is no restriction for one or two years of accumulation of funds for public charities. However, if you do it for many years, then the IRS would want to see a purpose for the accumulation. On page 126 of the book With Charity for All , author Ken Stern,...

Nonprofit Law: Chamber of Commerce
Yes. See IRS Publication 557 Tax Exempt Status for Your Organization which is available http://www.irs.gov/pub/irs-pdf/p557.pdf on page 68 at the end of the listing for the 501(c)(6) organizations a superscript 2 which is revealed on page 70 (footnote...

Nonprofit Law: Dissolution Issue?
There are many regulations that relate to 501(c)(3) organizations, but Section 501 does not apply to state, county or municipal governmental unit except in certain circumstances. See IRS Publication 557 Tax Exempt Status for Your Organization www.irs.gov/pub/irs-pdf/p557.pdf...

Nonprofit Law: Donations
1. A 501(c)(3) booster organization may be established but must not simply benefit its own members (those who pay dues or agree to work for the organization). Such an operation would be what the IRS calls a cooperative. A cooperative is not qualified as a...

Nonprofit Law: IFA's
First I should point out that the IRS explains at http://www.irs.gov/pub/irs-pdf/p5137.pdf on page 87. A volunteer is an employee under common law if an entity has the right to direct and control the volunteer s performance, not only as to the results to...

Nonprofit Law: What paperwork do I use
It appears that a 501(c)(3) organization is going to be directly paying music artists for their services. Those people would not be employees because of several reasons, mostly that you do not control the way they perform their services. Therefore, they are...

Nonprofit Law: starting an AAU basketball team
If you want donors to be able to deduct donations and not to have your sales income, if any, taxed as long as you comply with fundraising guidelines for 501(c)(3) organizations, you would need to establish a charitable trust, incorporate under a state s nonprofit...

Nonprofit Law: Transferring funds to India
See the IRS publication at http://www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and international activities of U.S. exempt organizations, and, especially page 2: --- Start of excerpt --- ... a section 501(c)(3) organization...

Nonprofit Law: 501(c)3 v. 501(c)7 privacy issues
If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the IRS it has an obligation to provide anyone with certain copies. See FAQs About the Exempt Organization Public Disclosure Requirements http://goo.gl/CjGc3 and...

Nonprofit Law: 501 C3
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Generally, I would recommend that a religious publishing company and a church be separate entities, for liability protection...

Nonprofit Law: Does 501c3 need to issue 1099
When someone gives funds to an individual that is called a gift. The Internal Revenue Code at section 102(a) provides that gifts are not income. Gross income does not include the value of property acquired by gift... http://codes.lp.findlaw.com/uscode/26/A/1/B/III/102...

Nonprofit Law: Church building fund
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Class Reunion?
Social or Savings Club is the appropriate category as class reunion groups are mostly considered to be for social purposes and would not qualify, for example as a 501(c)(3) organization which needs to have mostly charitable, religious or educational activities....

Nonprofit Law: Food Closet
If you are giving to individuals you would want to keep records as to their being needy. Revenue Ruling 56-304 provides: --- Start of Excerpt --- Organizations privately established and funded as charitable foundations which are organized and actively...

Nonprofit Law: gymnastic booster clubs
My summary of IRS regulations relating to 501(c)(3) booster organizations is at http://goo.gl/IdQwML and you may be interested to read that. You will see there that all of the provisions that you asked about are prohibited for 501(c)(3) booster organizations,...

Nonprofit Law: Handling balances with a 501c3 non-profit
I am assuming from what you wrote to me that the organization is not a private foundation (you can confirm that on the IRS determination letter). There is no restriction for one or two years of accumulation of funds. However, if you do it for many...

Nonprofit Law: Inspecting required records of a non profit, being charged for doing so?
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Your matter is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Can an organization change its tax determination
In order to receive donations that are deductible, a nonprofit organization must have articles of organization, (either articles of incorporation, articles of association or a trust document, depending upon the type of entity) and those articles of organization...

Nonprofit Law: one more question
Yes, that is fine, but still the booster organization must provide to the family the same benefits as it provides to the other gymnasts. Harvey Mechanic Attorney at Law Harvey108@hotmail.com P.S. This response is intended to be a general statement...

Nonprofit Law: steps for dissoulution of non-profit entertainment recreational 501(c)(3)
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. You asked about California but I am willing to give you some leads. For copies of documents General Guide for Dissolving...

Nonprofit Law: Stipend for booster member
The IRS explains: --- Start of Excerpt --- An exempt organization (EO) may have officers such as a president, vice-president, secretary, treasurer, executive director, and CEO (chief executive officer). As used here, the term officer includes anyone who...

Nonprofit Law: gift with membership fee
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. The IRS does not have any regulation prohibiting a 501(c)(3) youth organization from providing suits to all participants...

Nonprofit Law: 501-3c UBIT taxes for real estate income, unrelated business income, irs gov
unrelated business income, irs gov, harvey mechanic: It depends if it is debt-financed property. IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations page 14 on Unrelated debt-financed property. www.irs.gov/pub/irs-pdf/p598.pdf It also depends upon whether the specific real...

Nonprofit Law: 501-3c, harvey mechanic, 5013c status
harvey mechanic, 5013c status, articles of incorporation: The principal is that fund-raisers for nonprofits do not have right to funds after the nonprofit receives the funds absent some contractual arrangement. Now it may be that a person who gave a donation may request that donation back. Harvey Mechanic Attorney...

Nonprofit Law: 501 C - 3, weather awareness resource network, federal emergency management agency
weather awareness resource network, federal emergency management agency, preparedness brochures: I do work on 1023 applications but that is beyond the scope of this free service. If you wish to hire me, then please contact me directly after October 27th, as I am travelling until then, at HMechanic@excite.com Thank you. Harvey Mechanic Attorney...

Nonprofit Law: 501(c)(2), harvey mechanic, board resolution
harvey mechanic, board resolution, attorney at law: That is determined by your State... the same office that you did the incorporation. You would need to file the dissolution papers after having a Board Resolution to dissolve. Look at your Articles and Bylaws for the dissolution provisions which should be...

Nonprofit Law: 501 (c) (3), harvey mechanic, affiliation agreement
harvey mechanic, affiliation agreement, group exemption: If a group is using your 501(c)(3) that is just like your organization doing an activity so you would be responsible for all aspects of the feeding operation. However, if they incorporate separately, they may go under what the IRS calls a group exemption and...

Nonprofit Law: 501 (c) (3), harvey mechanic, canadian citizen
harvey mechanic, canadian citizen, attorney at law: I don t know what you mean by pertain , but, if you are referring to donations that you make being deductible by you from your Canadian income tax, that would be determined by treaty and I believe would only assist you if you have U.S. source (and taxable...

Nonprofit Law: 501(c)3 for animal protection and welfare, unrelated business income, irs gov
unrelated business income, irs gov, harvey mechanic: There is no ubti for an annuity because assive investments are not considered Unrelated businesses as they are not businesses. www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations Harvey...

Nonprofit Law: 501(c)(3) application, nick edwards, corporate grants
nick edwards, corporate grants, nonprofit magazine: If you are projecting some grants annually don t put them under unusual grants. Corporate grants and individual grants go together as one figure in item 1. There is no set amount that the IRS uses to decide that a donation is unusual . It depends upon...

Nonprofit Law: 501(c)(3) authorized expenditures of fundraising monies, youth sports association, harvey mechanic
youth sports association, harvey mechanic, college football teams: Whatever is directly for the sporting training or events would be allowed by the IRS. I have not seen any specific list. However, food may not be allowed unless, perhaps, when the team is away from the home area. Uniforms should only be used for direct team...

Nonprofit Law: 501(c)3 Capital Gain on Real Estate, harvey mechanic, profit entities
harvey mechanic, profit entities, capital gain: No, as you indicated that the property was used exclusively for offices of the 501(c)(3). It would be otherwise, if it was, in a substantial part at least, rented out to for-profit entities. Thank you. Harvey Mechanic Attorney at Law Harvey108@hotmail.co...

Nonprofit Law: 501(c)(3) and a change of mission statement, harvey mechanic, operation changes
harvey mechanic, operation changes, state authorities: You would need to report to the IRS as your exemption determination letter should have in it that if you mode of operation changes you would need to notify the IRS in case they would want to make a change in the determination. Harvey Mechanic Attorney...

Nonprofit Law: 501(c)(3) church considering starting day-care & private schools, harvey mechanic, irs letter
harvey mechanic, irs letter, profit entities: You would be able to establish a school and day-care as part of the same existing corporation that has 501(c)(3) organization status. However, as your exemption application may not have included such purposes and projected expenditures, you would need to...

Nonprofit Law: 501(c)3 donation to church fund, harvey mechanic, www irs gov
harvey mechanic, www irs gov, thirft store: A 501(c)(3) organization like the organization that operates the thrift shop may not contribute to a fund that is for a small group of individuals. The first question is whether the church may set up a Staff Development Fund and whether that fund is acceptable...

Nonprofit Law: 501(c)(3) donation to a business, www irs gov, sole proprietorship
www irs gov, sole proprietorship, financial stake: Revenue Ruling 56-304 promulgates that Adequate records and case histories should be maintained to show the name and address of each recipient, the amount distributed to each, and the purpose for which the aid was given, the manner in which the recipient...

Nonprofit Law: 501(c)(3) - elected official, political campaign activity, harvey mechanic
political campaign activity, harvey mechanic, political action committee: As long as the officer is not a candidate for office it may make payements to that official but not a campaign contribution . That is prohibited as political campaign activity , as long as the nonprofit is a 501(c)(3) organization. Political campaign...

Nonprofit Law: 501(c)(3) giving money to foreign corporation, harvey mechanic, tax exempt status
harvey mechanic, tax exempt status, mcsb: Your exemption application may not have included such purposes and projected expenditures. Exempt organizations determination letters state that if its mode of operation changes it must notify the IRS of the change so that the IRS can determine the effect...

Nonprofit Law: 501 (c) (3) and incentive pay, excess benefit transaction, excess benefit transactions
excess benefit transaction, excess benefit transactions, www irs gov: It appears that you are referring to a 501(c)(3) organization that has its own employees fund-raising and you are asking whether the employee may be paid a percentage of the amount raised. A 501(c)(3) organization may not give to any employee more than a reasonable...

Nonprofit Law: 501(c)(3) and lobbying, irs tax code, harvey mechanic
irs tax code, harvey mechanic, follow ups: Your proposed actions appear to be aimed directly at attempts to influence legislation and would, therefore, be regulated by not prohibited for your 501(c)(3). Of course individuals who happen to be associated with your organization can participate in their...

Nonprofit Law: 501(c)3 Membership, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, membrs: Yes, many public 501(c)(3) organizations are allowed to have qualifications for membership. For example a veterans organization can require someone to be a veteran. If you present the particulars of those requirement in your case, I will reply whether they...

Nonprofit Law: 501(c)3 Memberships, federal tax questions, harvey mechanic
federal tax questions, harvey mechanic, public charities: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. The issue of lists of members is a question of state law. However, I can inform you that most states have a requirement that, in the Articles...

Nonprofit Law: 501(c)3 originally not approved - can we start over?, irs filing, articles of incorporation
irs filing, articles of incorporation, form 1023: It is up to you to decide whether you want to go as a nonprofit or not, depending upon the balance of the factors as you understand them. I believe that the IRS is not adequately regulating the booster club sector, but maybe there will be complaints from...

Nonprofit Law: 501(c)(3) and other alternatives, harvey mechanic, mental health center
harvey mechanic, mental health center, community mental health center: 1. Usually an organization that engages in services, even if services for 501(c)(3) organizations is not qualified as a 501(c)(3) organization. However, a trade association nonprofit may be applicable if it is open to all cmhc s in a geographic area. 2....

Nonprofit Law: 501(c)(3) Pass through, harvey mechanic, basketball team
harvey mechanic, basketball team, youth organization: That could be done only if your organization could give a grant to them independent of where the funds came from. If you don t know the answer you would need to knoow, among other things, to whether the local basketball team is a youth organization and that...

Nonprofit Law: 501(c)(3) Purchase, harvey mechanic, flowers for a funeral
harvey mechanic, flowers for a funeral, exempt purposes: No that is not an expenditure that is for a charitable or educational activity for which sports organizations are granted exemption under section 501(c)(3). Therefore, it should not have such expenditures unless it can reasonably be seen as furthering your...

Nonprofit Law: 501(c)3 reporting to membership, public disclosure requirements, california secretary of state
public disclosure requirements, california secretary of state, irs gov: Unless the State law, Articles of Incorporation or Bylaws or any resolutions give members rights of inspection, then the members only have the same rights as the public. http://law.justia.com/california/codes/corp.html starting about 30% of the way down...

Nonprofit Law: 501(c)(3) resource usage, irs tax law, private benefit
irs tax law, private benefit, public charity: There are two issues here. 1. Whether the 501(c)(3) organization is violating the law. 2. Whether that Officer (I presume he is an officer of the corporation as you wrote that he is president of the board . As for the organization, it may be violating...

Nonprofit Law: 501(c)(3) restrictions on awarding small grants, harvey mechanic, recordkeeping requirements
harvey mechanic, recordkeeping requirements, 501 c 3 organizations: It appears that you are referring to small grants that would not be going to other 501(c)(3) organizations, but mostly to individuals. If individuals are getting grants then the 501(c)(3) organization must keep records. Grants to Individuals Recordkeeping...

Nonprofit Law: 501(c)3 Status, harvey mechanic, tax deductible donations
harvey mechanic, tax deductible donations, internal revenue service: If you are separately incorporated you will not be able to use the 501(c)(3) status of another organization per se. You would need to separately apply to the Internal Revenue Service for an exemption determination letter under 501(c)(3) and you may be able...

Nonprofit Law: 501 (c) 3 sharing space with for profit corporation, harvey mechanic, private shareholder
harvey mechanic, private shareholder, inurement: No problem as long as the 501(c)(3) does not pay any of the costs. If it pays costs, such as sharing rent, that would be very highly scrutized to see if more than a reasonable amount of funds of the nonprofit are going for such purpose as that would be prohibited....

Nonprofit Law: 501(c)3 status for Parent Association, nyc board of ed, irs gov
nyc board of ed, irs gov, harvey mechanic: You may want to make sure that you want to remain unincorporated. Unless the state has a particular applicable law associations with their own EIN number and corresponding bank accounts would not give limited liability. You can read about limited liability...

Nonprofit Law: 501 (c) (3) subclasses, irs publication 526, harvey mechanic
irs publication 526, harvey mechanic, www irs gov: What you are referring to is subclasses of 501(c), such as 501(c)(2), 501(c)(7) up to 501(25) Deductability is discussed in detail in the IRS Publication 526 Charitable Contributions . http://www.irs.gov/pub/irs-pdf/p526.pdf Thank you. Harvey...

Nonprofit Law: 501(c)(3) vs. 501(j), harvey mechanic, weightlifting club
harvey mechanic, weightlifting club, subsection c: http://tinyurl.com/ytmvlk has the text of section 501 of the Internal Revenue Code and the total text of the subsection (j) is merely descriptive of a certain type of 501(c)(3) organization. Yes, donations to a 501(j) organization is deductible if it qualifies....

Nonprofit Law: not a 501 c 3 yet., harvey mechanic, social gatherings
harvey mechanic, social gatherings, nfp: The organization does not need any bank balance to apply for IRS exemption under 501(c)(3). You can have as many fund-raisers as you want but if a substantial part of your activity is actually to arrange social events for members, then your organization might...

Nonprofit Law: 501(c)4 spending, social welfare organizations, social welfare programs
social welfare organizations, social welfare programs, international association of lions clubs: No restriction on percentages needed to be used for its exempt purposes or charitable purposes. Passive investments are permitted as long as the organization maintains its substantial exempt activities. Real estate may be a concern, however, as it may not...

Nonprofit Law: 501(c)(5), irs web page, harvey mechanic
irs web page, harvey mechanic, www irs gov: To verify your status an officer of your organization should call the IRS Exempt Organizations unit at 1-877-829-5500, 1,2,1,1 to request an updated exemption determination letter. There is no charge for that and the IRS may be able to fax or mail that...

Nonprofit Law: 501(c) 6, irs gov, harvey mechanic
irs gov, harvey mechanic, 501 c 6: Yes, the returns are subject to public inspection www.irs.gov/charities/article/0,,id=96430,00.html You can go down to 501(c)(6) and see the form required is either form 990 or form 990-ez http://tinyurl.com/2stox9 Thank you, Harvey Mechanic...

Nonprofit Law: Can a 501 (c)(6) organization form a 501(c)(3)?, harvey mechanic, 501 c 6
harvey mechanic, 501 c 6, organizational structure: It would not be a subsidiary but it could set up a 501(c)(3) and it would be related by organizational structure such as having the same persons as members of the Board of Directors of both organizations. Thank you. Harvey Mechanic Attorney at Law...

Nonprofit Law: 501(c)(6) Structure, irs publication 557, public disclosure requirements
irs publication 557, public disclosure requirements, harvey mechanic: The type of organization, whether 501(c)(3) or 501(c)(6) or other sections of the Internal Revenue Code do not determine how many persons are on the Board of Directors. Some state statutes allow less than 3 members of the Board, but many states require at...

Nonprofit Law: 501(c)(6) with a sub 501(c)(3), harvey mechanic, tax deductible donations
harvey mechanic, tax deductible donations, 501 c 6: You are correct in your proposed set up. The two entities are usually related in that the (c)(6) would have the power to appoint the members of the Board of Directors of the (c)(3) organization. However, the 501(c)(3) organization is not a sub-corporation...

Nonprofit Law: 501(c)(6), harvey mechanic, santa fe community
harvey mechanic, santa fe community, www irs gov: Right, sorry, you would have already filed form 1024. www.irs.gov/pub/irs-pdf/k1024.pdf and you gave in that your budget and a listing of your activities. If you have a substantial change of operations, you would need to advise the IRS about your change....

Nonprofit Law: 501(c)7 advertising, irs revenue rulings, irs gov
irs revenue rulings, irs gov, harvey mechanic: http://www.irs.gov/irm/part7/ch10s10.html about 60% down the page is: 7.25.7.6.3 (02-23-1999) Leasing and Rental Activities 1. Effect of rental income from members appears to depend on the primary thrust of the club. If the principal purpose of the...

Nonprofit Law: 501(c)(7) - If a club becomes unable to continue function, harvey mechanic, capitol improvements
harvey mechanic, capitol improvements, pool tennis: Absent some relevant clause in its Articles of Incorporation or Bylaws, a 501(c)(7) club may, upon dissolution, distributed its assets to members. State law may have some requirements that need to be followed in the dissolution. Yes, the club may sell a portion...

Nonprofit Law: 501(c)(7) - Hockey Association fundraising, irs web page, irs gov
irs web page, irs gov, irs rule: http://www.irs.gov/irm/part7/ch10s10.html is an IRS web page about 501(c)(7) organizations and I suggest you read that. As for your specific questions. 1. Yes, you can get back your seed money. 2. Your fundraising is treated like a normal business of...

Nonprofit Law: 501 (c) (7) Member Distributions, harvey mechanic, www irs gov
harvey mechanic, www irs gov, gov pub: The principal is that the assets of a 501(c)(7) can be distributed to its members and obviously, as you can read from the .pdf file, there will be some gain realized. If you did not yet read that .pdf file, please do so. There is inurement but not prohibited...

Nonprofit Law: Can a 501(c)(7) run a profitable event, harvey mechanic, www irs gov
harvey mechanic, www irs gov, cpa ea: IRC 501(c)(7)... provide(s) that substantially all of a club’s activities must be for recreational purposes is to allow social clubs to receive some investment income and income from nonmember use of its club facilities without jeopardizing its tax exempt...

Nonprofit Law: 501(c), harvey mechanic, public charities
harvey mechanic, public charities, mail: The boosters would have had to already applied for and received such exemption determination from the IRS. If you think you had one but lost it you can get an updated letter. An officer of your organization should call the IRS Exempt Organizations unit...

Nonprofit Law: 501 (c) gives political endorsement, harvey mechanic, www irs gov
harvey mechanic, www irs gov, irs news: You are correct if you are referring to a 501(c)(3) organization. IRS Complaints regarding Exempt Organizations www.irs.gov/charities/article/0,,id=131651,00.html which has mailing address and then the details are in a pdf that is linked on that page as...

Nonprofit Law: 501 c3 general question, harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, birth marriage: 3 is fine if they are unrelated by birth, marriage or residential address. The President may not also be the Secretary but otherwise you can handle the positions with 3 including you 3 as members of the Board of Directors. Thank you, Harvey Mechanic...

Nonprofit Law: 501 expenses for annual party, harvey mechanic, annual membership dues
harvey mechanic, annual membership dues, flowers for funerals: Most states have regulations on raffles and you would need to consult with your State to determine whether, and under what procedures, you could have a raffle. In any case, membership dues may only be used for unit members but not a fund raiser for members....

Nonprofit Law: 5013c, harvey mechanic, irs rules
harvey mechanic, irs rules, fundrasiers: It does not have any financial disclosure responsibilities as it has not yet applied with the IRS for the 501(c)(3) organization status. You would not have access to its financial records unless allowed by the Articles of Incorporation and Bylaws and any resolutions....

Nonprofit Law: 5013c, harvey mechanic, definitive determination
harvey mechanic, definitive determination, advance ruling: If your organization has been in existence for more than 5 years then the IRS will give you a definitive determination letter that does not expire. For new organizations the IRS gives an advance ruling period letter that is good for the first 5 years and then...

Nonprofit Law: 501C developers on city Planning commision, city planning commission, harvey mechanic
city planning commission, harvey mechanic, low income housing: Certainly your city can have its own regulations relating to conflicts of interest, but otherwise, you would need to look to the State. For example, you can see from the following story that South Carolina evidently had a ruling that would require resignation...

Nonprofit Law: 501C7, harvey mechanic, www irs gov
harvey mechanic, www irs gov, 501c7: As your Yacht club is a corporation then the members are protected against the debts and liabiliies of the organation. That is called limited liability. As for a claim for assets in the event the club dissolution, you would need first to look to the Articles...

Nonprofit Law: 501c3, public charity status, harvey mechanic
public charity status, harvey mechanic, guidestar: If you want public charity status, then the majority of the board would not be related. Otherwise it would be a private foundation. A quick summary of the differences between public charities and private foundations can be found at: www.guidestar.org/news/features/foundations.jsp...

Nonprofit Law: 501c3, irs gov, harvey mechanic
irs gov, harvey mechanic, gov pub: You would need to submit the information required for an original 1023 application. See Application for Exemption www.irs.gov/pub/irs-pdf/f1023.pdf Also no doubt you would first need to amend your Articles. Harvey Mechanic Attorney At Law Harvey108@hotmail.co...

Nonprofit Law: 501c3 and 501c6 fundraising, irs publication 557, irs gov
irs publication 557, irs gov, harvey mechanic: Well, the fund-raiser may not indicate that donations are deductible by the donors unless it specifies what portion is a donation to the 501(c)(3) organization. As you may know, donations to 501(c)(6)s are not deductible. IRS Publication 557 Tax Exempt...

Nonprofit Law: Do 501c3 Board Members need to be US Residents / Citizens, harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, additional qualifications: No. I can direct you to 617.0802 Qualifications of directors at http://law.justia.com/florida/codes/TitleXXXVI/ch0617.html (1) Directors must be natural persons who are 18 years of age or older but need not be residents of this state or members of...

Nonprofit Law: 501c3 comedy club?, www irs gov, internal revenue service
www irs gov, internal revenue service, group harmony: Possibly they obtained exemption as a theater group or cultural group . It has long been the position of the Internal Revenue Service that so-called cultural type organizations may be exempt from Federal income tax as educational or charitable. For...

Nonprofit Law: 501c3 fundraising issue, youth sports clubs, harvey mechanic
youth sports clubs, harvey mechanic, cheer girls: Yes, the bylaw would need to be followed so there would be an equal split, whatever that means (I would need to see the exact wording in the bylaws). Someone can cut a check to the hotel but that would not be deductible as a charitable donation. I did...

Nonprofit Law: 501c3 giving to a pending Charity, harvey mechanic, irs rule
harvey mechanic, irs rule, irs regulations: There is no IRS rule against it per se, that would apply in all circumstances. However, I do not advise that a 501(c)(3) organization make a donation to an organization that has not yet received IRS determination that it is a 501(c)(3) organization. Otherwise,...

Nonprofit Law: 501c3 - individual donation, disaster relief organizations, www irs gov
disaster relief organizations, www irs gov, harvey mechanic: No, on that page 5 of that IRS pamphlet that I referred you to is a discussion about charitable class that applies whether the organization has already received 501(c)(3) organization status from the IRS or not and applies to all 501(c)(3) organizations...

Nonprofit Law: 501c3 Ownership of Another 501c3, harvey mechanic, 501c3 organization
harvey mechanic, 501c3 organization, membership organizations: The term owner is not used in connection with a 501(c)(3) organization. The Board of Directors and, in membership organizations, the members, would control a 501(c)(3) organization, but no entity owns a 501(c)(3) organization. Harvey Mechanic Attorney...

Nonprofit Law: 501c3 paperwork, harvey mechanic, 501c3 status
harvey mechanic, 501c3 status, articles of incorporation: Normally the founder does not have any powers other than any other member of the Board of Directors or any other Executive Director or CEO. Of course you would need to look in your organization s Articles of Incorporation and Bylaws to see if there are any...

Nonprofit Law: 501c3 payments to members - Scholarships, www irs gov, harvey mechanic
www irs gov, harvey mechanic, form 1099 misc: You may not give scholarships unless and to the extent that you planned it as on your 1023 exemption application to the Internal Revenue Service or in accordance to an updated notice from the IRS in response to your notice to them of your projected change...

Nonprofit Law: 501c3 question, karate school, karate lessons
karate school, karate lessons, logical consequence: The IRS does not approved 501(c)(3) organization status where there is that much control by the owner of the karate school. This is similar to the situation about booster clubs discussed at: http://viewer.zoho.com/embed.jsp?f=aDebbe specifically around...

Nonprofit Law: 501c3 research, irs publication 557, aclj org
irs publication 557, aclj org, www irs gov: I. The 501(c)(3) organization received a determination letter of its exemption from the IRS and in that letter the IRS wrote that, if the organization changes its operation, it needs to advise the IRS which will be able to determine whether that has any effect...

Nonprofit Law: 501c3 School Sports Association, school sports association, federal tax questions
school sports association, federal tax questions, www irs gov: Inurement only refers to private benefit. It does not refer to a benefit that may come to a department of a nonprofit (like a department of a public school). See 7.25.3.16.3 (02-23-1999) Insider Benefit at http://www.irs.gov/irm/part7/ch10s05.html ...

Nonprofit Law: 501c3, harvey mechanic, group exemption
harvey mechanic, group exemption, attorney at law: It is not called umbrella, but you can use the same 501(c)(3) if it is the same corporation. You would simply register the NJ corporation as a foreign (out-of-state) nonprofit organization with the corporations division of PA. If you have two corporations,...

Nonprofit Law: 501c4 umbrella regulations, volunteer fire department, harvey mechanic
volunteer fire department, harvey mechanic, irs revenue: It is incorrect to use the phrase I am a registered non profit . You may be the President of the non profit, however. Anyway, I would need to know under what subsection of Internal Revenue Code 501(c) the nonprofit you are associated with is organized under,...

Nonprofit Law: 501c7 year-end surplus, harvey mechanic, www irs gov
harvey mechanic, www irs gov, public charities: Sorry, a 501(c)(7) organization would not be classified as a private foundation so you don t need to worry about that. However, you would need to consider investment income at 7.25.7.5 (02-23-1999) Dealing with Public about 40% of the way down the...

Nonprofit Law: 501c8 and privacy act/public disclosure, public disclosure requirements, irs gov
public disclosure requirements, irs gov, harvey mechanic: FAQs About the Exempt Organization Public Disclosure Requirements www.irs.gov/charities/article/0,,id=96430,00.html There you will see that the public has a right to the information in your annual form 990, but, otherwise, the U.S. does not have any law...

Nonprofit Law: 509(a)(1) and grant funding, community outreach projects, harvey mechanic
community outreach projects, harvey mechanic, independent state agency: You could do it either way. Of course it is less expensive if you do not have to form a new organization. If you contacted an already established organization that has a determination letter from the IRS that it is exempt under 501(c)(3) that would be easier...

Nonprofit Law: 509(a)(1) organizations/ public libraries, irs publication 557, harvey mechanic
irs publication 557, harvey mechanic, www irs gov: The answer to your second question is no . Your first question is somewhat incorrectly prepositioned but the answer is no , because governmental bodies do not have 501(c)(3) status. Generally, in this forum, I request people to ask questions specific to...

Nonprofit Law: Acceptable foreign donations, harvey mechanic, u s treasury
harvey mechanic, u s treasury, quick reply: If you read the U.S. Treasury on embargoes you will not find any such prohibitions. Obviously, I am not going to indicate that there is no problem accepting funds from a governmental agency of one of those listed countries, nor from any person or entity that...

Nonprofit Law: Accepting a large donation, harvey mechanic, internal revenue service
harvey mechanic, internal revenue service, private foundations: There is no problem and no taxes to you if you accept funds and then disburse to charities, but if someone wants to take a tax deduction for the giving of the funds to you (that large sum of money) then it would be necessary to first set up a nonprofit private...

Nonprofit Law: Acknowledgements to Help Offset Publications Costs, federal tax questions, usps publication
federal tax questions, usps publication, unrelated business income: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. However, I can inform you that the USPS publication is http://pe.usps.gov/cpim/ftp/pubs/Pub417/Pub417.pdf 6-3.4, 6.3-5, 6.3-6 As for...

Nonprofit Law: Acquisition of 501 (c)(3) by foreign non-profit, harvey mechanic, voting members
harvey mechanic, voting members, attorney at law: Hey Travis, The workd acquire indicates ownership. Nonprofits are not owned, but usually controlled by the Board of Directors so the U.K organization may take over control by convincing the present Board or (or voting membership if there are other voting...

Nonprofit Law: Admin Fee, harvey mechanic, request for proposal
harvey mechanic, request for proposal, admin fees: I am assuming by RFP you mean Request for Proposal . en.wikipedia.org/wiki/Request_for_Proposal As far as I know the Executive Director is only allowed an administrative fee if the employment contract that he has with the nonprofit specifies that. ...

Nonprofit Law: Adult Softball League - Non-Profit Organization, amateur adults, adult softball
amateur adults, adult softball, league representatives: Yes, you need to establish a nonprofit organization unless you want to declare that you are running a private business on your own individual tax return. I don t know what you mean that you think that you are protected by being a league director as to the...

Nonprofit Law: Advantage of non-profit, youth sports organization, harvey mechanic
youth sports organization, harvey mechanic, irs 501 c 3: Well the athletes could be benefited by a booster club that was established as then they could have fund-raisers for the fees instead of the parents paying all of the fees. The main principle of funding by a U.S. IRS 501(c)(3) nonprofit is that the booster...

Nonprofit Law: Advertising by a 501 c3, gift shop merchandise, unrelated business income
gift shop merchandise, unrelated business income, unrelated business taxable income: It is legal to advertise but the real issue is on what basis that gift shop might be claiming exemption from unrelated business taxable income. You may see the discussed: www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 Tax on Unrelated Business...

Nonprofit Law: Advertising in a Non-profit's newsletter, unrelated business income, harvey mechanic
unrelated business income, harvey mechanic, www irs gov: Yes, advertising is a normal expense for businesses. As for your nonprofit...www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations starting on page 10 in the right column under the heading, ...

Nonprofit Law: Amateur Athletic Organization Fundraising, roller skating rink, organization fundraising
roller skating rink, organization fundraising, fundraising activity: No problem if you organization donates to another 501(c)(3) organization. You may need to advise the IRS of the change of operations, as they wrote in the exemption determination letter that they mailed to you. Fund-raising issues of 501(c)(3) organizations...

Nonprofit Law: Animal Nonprofit Organizations, harvey mechanic, better business bureau
harvey mechanic, better business bureau, would like more information: Well, if you just contact them and inform them that you are thinking about volunteering and you would like more information so you could be convinced that they are a fine organization. Otherwise, you could check with the Better Business Bureau. Thank...

Nonprofit Law: Annual Meeting for Non-Profit, nonvoting members, voting members
nonvoting members, voting members, youth organization: http://www.cga.ct.gov/2005/pub/Title33.htm is Chapter 33 of the Connecticut General Statutes and you can look at the Chapter that refers to your organization type http://www.cga.ct.gov/2005/pub/Chap602.htm#Sec33-1061.htm and discusses annual meetings...

Nonprofit Law: Articles of Incorporation, harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, english ms: Ms. English, That service is beyond the scope of this free forum. If you wish to have me do work beyond direct questions, such as review of documents, then contact me directly at Harvey108@hotmail.com Thank you. Harvey Mechanic Attorney at...

Nonprofit Law: Assets at Market Values, certified public accountant, harvey mechanic
certified public accountant, harvey mechanic, accounting books: This is really an issue for a Certified Public Accountant as it is an accounting issue. Possibly you could find one also on this free service. However, I do not see any problem with such accounting issues as might be the case for a public corporation such...

Nonprofit Law: ATTENDING A NON PROFIT EVENT, harvey mechanic, nonprofit event
harvey mechanic, nonprofit event, university basketball: Attending an event is not the same as doing volunteer work for the nonprofit organization. If you are going to be engaging in volunteer work, let me know and I will get back to you. You would also need to inform me whether that is a 501(c)(3) organization....

Nonprofit Law: ATTORNEY FOR NPCL LAWS, harvey mechanic, buffalo ny area
harvey mechanic, buffalo ny area, hotmail: I am a member of the New York bar so could work on the matter. I do work by mail and email for clients all over the State of New York. That would be on a fee basis, and, if you are interested, please contact me directly at Harvey108@hotmail.com Harvey...

Nonprofit Law: Athletic Club Fees & Fund-Raising, raffle ticket sales, varsity status
raffle ticket sales, varsity status, articles of incorporation: Just don t call your organization a booster club. Call it a youth sports team. Those qualify for 501(c)(3) organization status and donations are deductible (however, funds from family members are not considered donations, as tuition payments would not be...

Nonprofit Law: Athletic NFP, irs publication 557, harvey mechanic
irs publication 557, harvey mechanic, www irs gov: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations you would want to first incorporate with at least 3 unrelated directors (some state statutes allow less than 3 members of the Board, so if you are...

Nonprofit Law: Auditing for grants, harvey mechanic, foundation grants
harvey mechanic, foundation grants, volunteer activities: Usually audits for large foundation grants would need to be done by a CPA. However, audits may be performed by any accountant. It is best that you check directly with a few of the foundations to see what they specify. Thank you. Harvey Mechanic Attorney...

Nonprofit Law: Can I accept donations as a for-profit?, federal tax questions, harvey mechanic
federal tax questions, harvey mechanic, nonprofit religious organization: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. However, I can inform you that every state that I know of would require, as the IRS does, that exchanges of books for money are taxable to...

Nonprofit Law: access to non profit records, public disclosure requirements, irs gov
public disclosure requirements, irs gov, harvey mechanic: There are certain documents that they need to disclose to anyone. FAQs About the Exempt Organization Public Disclosure Requirements www.irs.gov/charities/article/0,,id=96430,00.html 26 U.S.C section 6104 http://tinyurl.com/3cflnx Other than that,...

Nonprofit Law: accessing budget of non-profit...public domain?, public disclosure requirements, irs gov
public disclosure requirements, irs gov, harvey mechanic: Yes, they are required to provide you with a copy of their Form 990 federal income tax return. FAQs About the Exempt Organization Public Disclosure Requirements www.irs.gov/charities/article/0,,id=96430,00.html Thank you, Harvey Mechanic Attorney...

Nonprofit Law: accounting basis, harvey mechanic, www irs gov
harvey mechanic, www irs gov, public charities: Either accounting method is fine. See Financial Records to be kept by 501(c)(3) organizations http://www.irs.gov/pub/irs-pdf/p4221.pdf on page 8 which mentions both methods. The 5% distribution rule that you refer to only applies to private foundations,...

Nonprofit Law: Is this allowed for non profit corp?, harvey mechanic, 501c non profit
harvey mechanic, 501c non profit, profit purpose: No, as a substantial amount of the activities are not charitable in nature (for example poor persons) and a substantial amount of the activities are to benefit a for-profit entity, which is prohibited for a exempt organization by 26 U.S.C. 501(c)(3). Harvey...

Nonprofit Law: amending bylaws, harvey mechanic, 501 c3
harvey mechanic, 501 c3, articles of incorporation: Whenever a nonprofit corporation has in its Articles of Incorporation or Bylaws that members have some rights, the only way that can be removed is if those Articles or Bylaws are amended and that would require the approval of the members or the class whose...

Nonprofit Law: Are auction sales required to be taxed?, unrelated business income, irs gov
unrelated business income, irs gov, harvey mechanic: As for State sales or use taxes, you would need to check with the State of Oklahoma. As I wrote in my profile, this forum is only for Federal matters. As for the IRS, you would not have to file taxes unless you regularly carried on such activities during...

Nonprofit Law: audit, harvey mechanic, www irs gov
harvey mechanic, www irs gov, concession stand: The IRS requires certain record-keeping which evidently is not happending with that organization. Exempt Organization Record Keeping Requirements are discussed at www.irs.gov/pub/irs-pdf/p4221.pdf Harvey Mechanic Attorney At Law Harvey108@hotmail.co...

Nonprofit Law: Band Booster Club, band booster club, harvey mechanic
band booster club, harvey mechanic, practice thanks: As long as the 501(c)(3) organization is the band itself and if each band member needs to arrange the $500 somehow. The money then can be placed in the general fund and credited to a student s account. However, if you are referring to your organization...

Nonprofit Law: Band booster fundraising, irs 501 c 3, irs rules
irs 501 c 3, irs rules, candy bars: You would be correct if that was actually volunteer labor, but the band members are getting in return a spring trip. But, first you should understand -- The main principle of funding by a IRS 501(c)(3) nonprofit booster club is that the booster club may not...

Nonprofit Law: Band Parents Booster Club - Transfer Assets, band booster club, harvey mechanic
band booster club, harvey mechanic, tax id number: The Board of Directors of the Band Booster Club can decide to allow the Music Boosters to take over the operation and keep the same tax id number. The Directors would simply, with any membership approvals that are required, vote in new Directors and, possibly...

Nonprofit Law: Banking for NPOs, harvey mechanic, new delhi india
harvey mechanic, new delhi india, tax authorities: No problem, as many as is in the interest of the NPO. By the way, if you are considering a U.S. NPO to send funds to India, I have worked on several and the U.S. tax authorities have some very tricky rules for such organizations so I would highly recommend...

Nonprofit Law: Banner sales, harvey mechanic, www irs gov
harvey mechanic, www irs gov, lower passage: I give you written opinion with references to IRS. They should give you in writing their legal opinion letter with the specific facts outlined before the conclusion is given. If you want to hire me to deal with them on that level please contact me directly...

Nonprofit Law: Benefits of for-profit booster, federal tax questions, unrelated business activities
federal tax questions, unrelated business activities, harvey mechanic: If a group incorporates (but not as a non-profit) it will be able to engage in regular business activities, including sales. However, it should not use words such as donation , contribution unless it first is satisfied that its State Charitable Solicitation...

Nonprofit Law: Bid requirements for a 501C3, excess benefit transaction, excess benefit transactions
excess benefit transaction, excess benefit transactions, harvey mechanic: Intermediate Sanctions which is usually in the form of Excise Tax on Excess Benefit Transactions. An IRS article about that is at: http://www.irs.gov/pub/irs-tege/eotopice04.pdf Section 4958 imposes an excise tax on excess benefit transactions between...

Nonprofit Law: Bingo Funds, harvey mechanic, intermediate sanctions
harvey mechanic, intermediate sanctions, scholarship money: It appears that the Foundation that runs the Bingo is giving money to your 501(c)(3) gymnastics group and mandating that the funds will go to your children. That would be considered simply as compensation to you and your family as you are involved in working...

Nonprofit Law: BOD meetings, harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, member objects: Generally State law requires at least annual meetings. Your Articles of Incorporation or bylaws may specify more meetings for your nonprofit. If you do not have meetings annually there are usually no big problems unless a member objects. Thank you, ...

Nonprofit Law: Board accountability, harvey mechanic, voting members
harvey mechanic, voting members, governmental agency: Only the the people fired or voting members of the corporation would have standing in court to challenge. The State officer (like, in California the Attorney General) only get involved if there is a very serious matter like someone taking the funds of the...

Nonprofit Law: Board of Directors for Non-Profit Organizations, harvey mechanic, conflict rules
harvey mechanic, conflict rules, conflict of interest: Yes, employees and admistrators may be Board members. However, because of rules against conflict of interest that apply in many states they generally would need to recuse themselves if the Board discusses their salary or any other direct employment issues...

Nonprofit Law: Board of Directors, harvey mechanic, secretary of states office
harvey mechanic, secretary of states office, articles of incorporation: Look at your Articles of Incorporation and Bylaws and you will see what power the Members have. If you need me to read those and analyze for you that would be on a fee basis. If you have no power in those documents, and the Board is actually corrupt, you...

Nonprofit Law: Board of directors transition from elected to appointed, harvey mechanic, nomination committee
harvey mechanic, nomination committee, committee present: The present bylaws need to be consulted for the details of the advance notice requirement. Online is not allowed. As for your question #3, I don t know what you mean by removing election but if you are referring to amending the bylaws, then the appointment...

Nonprofit Law: Board election results, corporate governance network, board election results
corporate governance network, board election results, electronic voting system: I am not a Colorado attorney and do not deal with the laws of the States in this forum (I do deal with Federal law), but you can read from the link below that the State of Colorado, as of January 1, 1998 specified that, absent contrary indication in bylaws,...

Nonprofit Law: What does one do when the Board does not follow the by laws., harvey mechanic, sec of state
harvey mechanic, sec of state, state representatives: Usually, unless the BOD is engaging in activities that are fraudulent to the city or state, those government agencies will not get involved. Your normal recourse is if you file a civil action in your State court naming the organization as defendant.. ...

Nonprofit Law: Board Liability, federal tax questions, public charities
federal tax questions, public charities, legal alternatives: See: www.ins.state.ny.us/ogco2002/rg203061.htm and you can see any updates in the law at http://law.justia.com/newyork/codes/not-for-profit-corporation/idx_npc0a7.html specifically section 720. Harvey Mechanic Attorney At Law Harvey108@hotmail.co...

Nonprofit Law: Board Meetings of Not for Profit Organisations, harvey mechanic, e mail
harvey mechanic, e mail, articles of incorporation: Subd. 2. Meetings solely by means of remote communication. Any meeting among directors may be conducted solely by one or more means of remote communication through which all of the directors may participate in the meeting, if the same notice...

Nonprofit Law: Board Meetings., harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, profit status: No, unless the Articles of Incorporation or Bylaws require it, then the Board Meetings to not need to be public. It is not suggested that they be open. All Boards need to have minutes of their meetings in their Corporate Record book. Thank you, Harvey...

Nonprofit Law: Board Members soliciting business, harvey mechanic, pizza franchises
harvey mechanic, pizza franchises, personal standpoint: There is a conflict of interest issue here and the particular member of the board who owns the pizza franchises would need to recuse himself from the board voting on the issue. I would not compare it to the discount books that refer to many businesses. ...

Nonprofit Law: Board member on commission, harvey mechanic, solicitation registration
harvey mechanic, solicitation registration, professional fund raiser: You can certainly hire a professional fund-raiser who is an independent contractor but both your organization and he would need to comply with Connecticut Charitable Solicitation registration requirements. www.ct.gov/dcp/lib/dcp/pdf/forms/public_charity_revisedgenl_info.pdf...

Nonprofit Law: Board Problems, executive board positions, club assets
executive board positions, club assets, snack shack: Your organization is probably incorporated as a California Nonprofit Public Benefit Corporation and therefore, would be controlled by that particular law which is at http://caselaw.lp.findlaw.com/cacodes/corp.html at Section 5110 and there you will see the...

Nonprofit Law: Bond, federal tax questions, harvey mechanic
federal tax questions, harvey mechanic, public charities: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. Those types of organizations may issue bonds. State laws vary concerning bonds, but most States allow issuance of bonds by corporations. ...

Nonprofit Law: Bond the Treasurer?, harvey mechanic, foxit reader
harvey mechanic, foxit reader, public charity: If your problem is that you are not able to display .pdf files, then I suggest you download the free foxit reader for windows (if you use windows) at: http://www.foxitsoftware.com/pdf/rd_intro.php If that is not your problem, I have had zamar.com convert...

Nonprofit Law: Bonding a non-profit professional organization, profit professional organization, harvey mechanic
profit professional organization, harvey mechanic, mr mechanic: I think you are referring to bonding the people who handle money or are authorized to issue checks. That would be available through an insurance company. As for you licensing your Board of Directors , I do not know what you are referring to. If you are...

Nonprofit Law: Booster Club, booster club member, harvey mechanic
booster club member, harvey mechanic, articles of incorporation: I see irc 501(j)(2) as stating, (2) Qualified amateur sports organization defined For purposes of this subsection, the term “qualified amateur sports organization” means any organization organized and operated exclusively to foster national or international...

Nonprofit Law: Booster Club, irs articles, harvey mechanic
irs articles, harvey mechanic, www irs gov: Sorry, I will need to check on that and post my summary in another place. For now you can read the complete IRS articles which is at: http://www.irs.gov/pub/irs-tege/eotopica93.pdf Harvey Mechanic Attorney At Law Harvey108@hotmail.com -- the newly...

Nonprofit Law: Booster Club, harvey mechanic, competitive cheerleading
harvey mechanic, competitive cheerleading, cheerleading team: It depends if the competitive cheerleading team is a 501(c)(3) organization. Let me know and then I will respond. Also, you would need to let me know whether the new booster club will want 501(c)(3) organization designation by the IRS. Harvey Mechanic...

Nonprofit Law: Booster Club...not a 501c and tax filings, irs tax id number, 501c status
irs tax id number, 501c status, 501c non profit: It appears that the booster club is an unincorporated association. The IRS explains that, when applying for the Employer Identification Number, the club may check the line for banking purposes only and gives the examples, a bowling league for depositing...

Nonprofit Law: Booster Club, california public benefit, band booster club
california public benefit, band booster club, public benefit corporation: If you don t want donors to be able to deduct donations from their federal income taxes then you can consider your organization should follow the normal tax rules for a for-profit corporation . Otherwise, your organization would need to file for federal tax...

Nonprofit Law: Booster Club, unrelated business income, harvey mechanic
unrelated business income, harvey mechanic, www irs gov: Yes, still a conflict if your organization is supporting the candle sales in any respect i.e. by labor or funds. As for unrelated business that is taxable, that is any business that is engaged in solely for funds, not which in itself a charitable or educational...

Nonprofit Law: Booster Club, harvey mechanic, gymnastic team
harvey mechanic, gymnastic team, gym team: No account can be set up without an EIN. The treasurer can check with the bank to verify the EIN on that account. If it is, as you have assumed, the EIN of the T&T, then the IRS does not consider those anyone s income other than T&T. Harvey Mechanic...

Nonprofit Law: Booster Club Board Rights, personal credit card, computer issue
personal credit card, computer issue, financial documentation: If your club is not incorporated a member could go to small claims court to sue the individual for the $750 and the fling fees are very small. Other than that, I would suggest that you can contact the voters and just ask them to consider the issue and put...

Nonprofit Law: Booster Club Funds, harvey mechanic, profit work
harvey mechanic, profit work, profit status: Giving substantial benefits to coaches, like training depends upon what percentage of time they devote to their for-profit work. The second question also depends upon if you are non-discrimatory... you may raise funds for meet fees to the gymnasts, but...

Nonprofit Law: Booster Club fundraising, www irs gov, team groups
www irs gov, team groups, gov pub: That would not be allowed for an exempt organization if there is a nexus between being a member of group A and the fundraising the member or the group does. Also it would not be allowed if there is not a good reason why one team gets more funds compared to...

Nonprofit Law: Booster Club Liability, public disclosure requirements, irs gov
public disclosure requirements, irs gov, harvey mechanic: 1. They are required by Federal law and can incur penalties if they do not disclose certain financial returns and the supporting documentation in that 1023 such as bylaws. FAQs About the Exempt Organization Public Disclosure Requirements www.irs.gov/charities/article/0,,id=96430,00.html...

Nonprofit Law: Booster Club Member Discounts, booster club member, booster club members
booster club member, booster club members, harvey mechanic: No a nonprofit 501(c)(3) can not fund raise and get benefits for its members like that. Your situation is different from the Chamber of Commerce situation in many ways. One of the main differences is that the Chamber is giving benefits on the basis of receiving...

Nonprofit Law: Booster Club Politics, harvey mechanic, cheerleading gym
harvey mechanic, cheerleading gym, cheer coaches: The Gym Owner can make whatever rules he wants for his for-profit gym operation. That is not in the area of the law of nonprofit organizations. It is only a question of normal discrimination laws. Harvey Mechanic Attorney At Law Harvey108@hotmail.co...

Nonprofit Law: Booster Club trouble, harvey mechanic, high school dance team
harvey mechanic, high school dance team, high school dance: I think that you should wait for the IRS to give you a decision as it is in their hands now. They will also inform you how they are going to treat individual taxpayers who claimed charitable donation deductions on 1040 returns. Certainly the law allows penalties...

Nonprofit Law: Booster Club vs. NonProfit, harvey mechanic, irs 501 c 3
harvey mechanic, irs 501 c 3, daughter dances: You are not required to organize as a 501(c)(3) organization but then you would not be able to have donors deduct their donations from their income taxes itemized as deductions. Also if you sell items, that would be then a regular business. Harvey Mechanic...

Nonprofit Law: Booster Club, harvey mechanic, cheerleading squad
harvey mechanic, cheerleading squad, postdated checks: I am assuming that the Cheerleading squad is affiliated with a public school, so, in that case, the club can require membership fees for people who want to join the club. The IRS makes regulations regarding Booster Clubs and the States follow the IRS. I suggest...

Nonprofit Law: Booster Clubs, harvey mechanic, booster clubs
harvey mechanic, booster clubs, local gym: I would recommend that you not try to do the set up yourself unless you are confident that you are qualified and I do not believe that the average educated person is qualified. I do not recommend on-line services for setting up booster clubs. If you want to...

Nonprofit Law: Do Booster Clubs have to have a Tax Id#?, harvey mechanic, www irs gov
harvey mechanic, www irs gov, employer identification number: Yes, a booster club would have to have its own tax id for any bank to open up an account. Each bank has its own procedures but they would need what is called an Employer Identification Number (EIN). If the booster club is part of a school, the school could...

Nonprofit Law: Booster Clubs, athletic booster club, unrelated business income
athletic booster club, unrelated business income, irs gov: Is the booster club a 501(c)(3) organization approved by the IRS? If yes, you would only have what is called unrelated business tax issues. www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations...

Nonprofit Law: Booster club Accounts, harvey mechanic, high school booster club
harvey mechanic, high school booster club, public charity: I would need to know whether your organization is a 501(c)(3) public charity or not. If it is, then you are not restricted for years as long as you continue with your substantial exempt activities. Harvey Mechanic Attorney At Law Harvey108@hotmail.com...

Nonprofit Law: Booster club accounts, harvey mechanic, irs 501 c 3
harvey mechanic, irs 501 c 3, deductible donations: The funds are in the bank account of the booster club and may be used for any valid charitable or education reason unless the booster club has limited itself by contract with others, such as the gymnast or the gymnast s family. Choreography is acceptable use...

Nonprofit Law: Booster club guidelines, harvey mechanic, gymnastics club
harvey mechanic, gymnastics club, team banquet: Family membership in a booster club can not be a condition for allowing a child to compete. I suggest you read www.mediamax.com/harvey108/Hosted/boost.txt A banquet, however, is not a competition and families, are not so protected. However, the nonprofit...

Nonprofit Law: Booster club, harvey mechanic, nonprofit law
harvey mechanic, nonprofit law, irs: The State may have such a procedure but some states require that you form a new corporation, the new one being a nonprofit corporation. The IRS scrutinizes organizations that started as for-profits and then change to nonprofits but if the operation is according...

Nonprofit Law: Boosters giving to part of 501c3, 501c3 status, association bylaws
501c3 status, association bylaws, hockey organization: Ok, forget about the booster club because it does not exist at least for the donations that have existed in the past and present. So there is no conflict and a donor can certainly specify the use of funds for the high school team, and get a donation deduction....

Nonprofit Law: Building Ownership, youth basketball organization, endowment campaign
youth basketball organization, endowment campaign, professional fundraising: Scenario 1. Yes, a 501(c)(3) can accumulate funds like you request. Scenario 2. No you could not buy the building unless you also bought the land it is situated on. As for overages (surpluses) you can accumulate funds for a good purpose or donate to another...

Nonprofit Law: Business as mission, harvey mechanic, net profits
harvey mechanic, net profits, art lessons: Yes, it is possible in certain circumstances, but there would not be investors who could get part of the profits if you want it to be a nonprofit. Your cafe would not be able to charge normal prices and would need to for specific educational purposes. There...

Nonprofit Law: Doing Business Under Existing 501(c)(3), soccer club and academy, irs publication 557, professional soccer team
irs publication 557, professional soccer team, club soccer team: When you refer to umbrella the only concept in 501(c)(3) organization law is group exemption which depends upon the facts of the case. Group Exemption is discussed starting on the right column of page 6 of IRS Publication 557 www.irs.gov/pub/irs-pdf/p557.pdf...

Nonprofit Law: Buying Property, property tax exemptions, harvey mechanic
property tax exemptions, harvey mechanic, 501c3 nonprofit organization: Each State has different rules regarding real estate property tax exemptions. I am assuming that is the tax benefit that you are referring to. Otherwise, please inform me what tax benefit you refer to. Some states just look to use and not ownership and...

Nonprofit Law: Buying property from a Church, harvey mechanic, state supreme court
harvey mechanic, state supreme court, professional assistance: I strongly advise that you obtain professional assistance (like me, as I am a member of the NY bar) for help with such a purchase as Churches need to obtain permission from the State Supreme Court in the County where that property is located in order to sell...

Nonprofit Law: baseball board - officers changed bylaws for their length of term, harvey mechanic, organization parents
harvey mechanic, organization parents, baseball board: If your organization is incorporated, you should confirm by its Articles that is incorporated as a Indiana Nonprofit organization. If it is you can review the State law at: http://law.justia.com/indiana/codes/title23/ar17/index.html and specifically,...

Nonprofit Law: US based 501(c)3 working in Panama, harvey mechanic, hotmail
harvey mechanic, hotmail, exemption application: Yes, the IRS srutinizes such operations that send funds outside the United States. You would need to keep very good records of where the funds are going and would need to give a good description of such in your 1023 exemption application. I would need to...

Nonprofit Law: board meetings, harvey mechanic, certificate of incorporation
harvey mechanic, certificate of incorporation, new york not for profit corporation law: Section 710 of New York Not-For-Profit Corporation Law provides that meetings of the Board must be at least once per year (annually) -------------- (a) Meetings of the board, annual, regular or special, may be held at any place within or without this state,...

Nonprofit Law: When board members act against the nonprofit, harvey mechanic, unanimous consent
harvey mechanic, unanimous consent, attorney at law: No, Board members have no authority to act unless by either a properly called meeting or by unanimous consent written resolution, and also must comply with the Bylaw provisions. Thank you. Harvey Mechanic Attorney at Law Harvey108@hotmail.co...

Nonprofit Law: board members, harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, competition team: Someone asked me this type of question within the last few days. You would need to look into the Articles of Incorporation and Bylaws and if there are no restrictions mentioned there, then the 3 other members of the Board can be anyone. Harvey Mechanic...

Nonprofit Law: boards of directors for non-profit organizations, harvey mechanic, certificate of incorporation
harvey mechanic, certificate of incorporation, irs: NY Not-for-profit corporation law only requires one annual meeting: § 710. Place and time of meetings of the board. (a) Meetings of the board, annual, regular or special, may be held at any place within or without this state, unless otherwise...

Nonprofit Law: booster board, harvey mechanic, gym owner
harvey mechanic, gym owner, 501c3: The spouse of the gym owner may be on the Board but would need to not discuss or vote on any issue that directly affects the gym financially. As for the person receiving compensation, is that compensation from the booster club or from the gym? After you...

Nonprofit Law: booster club - 1099, www irs gov, harvey mechanic
www irs gov, harvey mechanic, gov pub: If the amounts that you give to the coach are for specific agreed services that the coach will be performing, then, yes, you would need to 1099 the coach. You may want to review Employer Tax Guide -- the newly released January, 2007 version at: www.irs.gov/pub/irs-pdf/p15.pdf...

Nonprofit Law: booster club funds, harvey mechanic, irs 501 c 3
harvey mechanic, irs 501 c 3, booster club: Assuming you are referring to a booster club that has received from the IRS 501(c)(3) designation, then such individual accounts are not allowed. I suggest you read www.mediamax.com/harvey108/Hosted/boost.txt But, specifically, as to refunds that is up...

Nonprofit Law: booster club refund, band booster club, harvey mechanic
band booster club, harvey mechanic, small claims court: The first effort you should make is to find out what the booster club had informed you, before your payment, either directly or through their published club rules regarding refunds. Earlier you wrote about their policy but it is not clear to me whether that...

Nonprofit Law: booster club, harvey mechanic, tax exempt status
harvey mechanic, tax exempt status, articles of incorporation: I do not know why the IRS approved that application for exemption and I would need to look over the application form 1023 that was submitted along with all supporting documentation including the bylaws, articles of incorporation and budget. Harvey Mechanic...

Nonprofit Law: booster clubs, harvey mechanic, www irs gov
harvey mechanic, www irs gov, sports booster club: The Board can be compensated a reasonable amount for their work but no more. If the Board controls the operation they are certainly correct in stating that the fund raisers do not get all of the benefit of their own funds raised. I suggest you read the...

Nonprofit Law: booster clubs, harvey mechanic, search google
harvey mechanic, search google, breakaway group: Other than asking them for a copy, you can obtain one for a small copying fee from the State s Secretary of State s Office, division of corporations. Search Google for State of x, corporations division with x being the state name. Harvey Mechanic Attorney...

Nonprofit Law: booster clubs, harvey mechanic, sponsorship letter
harvey mechanic, sponsorship letter, seeking sponsorship: You can sue them for unjust enrichment as you put in the effort for gaining the sponsorship for your daughter. I don t know yet if you would have more than a 50% chance of winning, but I believe that the expenses and time that you would put into it would...

Nonprofit Law: booster clubs, irs publication 557, www irs gov
irs publication 557, www irs gov, tax exempt number: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations and not to be treated by the IRS as a normal, for-profit business, you would want to first incorporate stating that you are incorporating under Internal...

Nonprofit Law: booster clubs, harvey mechanic, irs organization
harvey mechanic, irs organization, www irs gov: First you would have to find out if the organization is an approved 501(c)(3) exempt organization by the IRS and then it would have to follow certain guidelines. Giving funds to certain wrestlers and not others may be allowed for nonprofits but not if the...

Nonprofit Law: booster funds vs school admin, harvey mechanic, intelproplaw
harvey mechanic, intelproplaw, booster funds: If you are looking for the IRS exemption application form when you refer to the 501(c)(3) form, that is at: See Application for Exemption www.irs.gov/pub/irs-pdf/f1023.pdf Otherwise, there is no other 501(c)(3) form. Yes, the costs are in the range...

Nonprofit Law: booster membership fees?, harvey mechanic, irs 501 c 3
harvey mechanic, irs 501 c 3, club fundraiser: No, you are not required to join the booster club or pay fees to get the benefits. Also the for-profit gym would be engaged in conspiracy to evade federal income taxes if it required such membership or membership fees. The main principle of funding by a IRS...

Nonprofit Law: branching out from the non profit org., harvey mechanic, mark ups
harvey mechanic, mark ups, contract writing: Usually fare value in money. I suggest that you contact me directly if you want me assist further in this matter and that would involve me going into detailed contract writing that would be beyond the scope of this forum. Thank you. Harvey Mechanic...

Nonprofit Law: budget, harvey mechanic, 501 c3
harvey mechanic, 501 c3, line insurance: The Federal law does not preclude any nonprofit group from having the kind of budget that you have for the first year or so. But you should develop to the stage where you would be showing that your operation is not mainly for the benefit of a few people (such...

Nonprofit Law: business association, professional football leagues, harvey mechanic
professional football leagues, harvey mechanic, nonprofit corporation law: I suggest incorporating under the nonprofit corporation law of your state. Otherwise the members will have liability for the debts of the organization. The corporate structure gives limited liability. As for the Articles of incorporation, they would indicate...

Nonprofit Law: business law, claims case, small claims
claims case, small claims, business law: I believe you are referring to de novo which is an adjuective. Latin for anew, which means starting over, as in a trial de novo. For example, a decision in a small claims case may be appealed to a local trial court, which may try the case again, de novo...

Nonprofit Law: bylaws, public disclosure requirements, harvey mechanic
public disclosure requirements, harvey mechanic, www irs gov: A copy of the bylaws are required along with the 1023 application and therefore they are covered by the disclosure rules that include the 1023 and any supporting documents. http://www.irs.gov/charities/article/0,,id=135008,00.html The procedure is that...

Nonprofit Law: C6 scholarship or grant Fund, harvey mechanic, www irs gov
harvey mechanic, www irs gov, 501 c 6: No, I see my two answers as contradictory as I wrote to the earlier question: ... you would need to advise the IRS about your change. The IRS may want you to answer the same questions that are in Schedule H of the 1023. If you look at that schedule...

Nonprofit Law: California Property Partial Exemption, california court decisions, california property tax
california court decisions, california property tax, california property tax exemption: As I have written in my profile here, I only deal with Federal questions. The IRS has in their code also the word exclusively in relation to exemptions, but they have defined that to mean except to an insubstantial degree so that, for example, 98% or...

Nonprofit Law: Capital Gains on Real Estate Sale, unrelated business income, irs gov
unrelated business income, irs gov, capital gains on real estate: As a 501(c)(3) organization you would not be subject to federal capital gains taxes. However, if your property was debt-financed and you produced income from that property, you have unrelated business income taxes. www.irs.gov/pub/irs-pdf/p598.pdf IRS...

Nonprofit Law: Carry over for budget, harvey mechanic, public charity
harvey mechanic, public charity, private foundation: Yes. No problem as long as you do not excessively accumulate funds. Year to year is not an issue especially if your organization is a public charity (not a private foundation). Thank you. Harvey Mechanic Attorney at Law Harvey108@hotmail.co...

Nonprofit Law: Carryover of excess funds, harvey mechanic, youth swim team
harvey mechanic, youth swim team, mr mechanic: 1. Usually such swim teams would be able to be incorporated in the State and have in its Articles that it is a 501(c)(3) organization. Then it would have 15 months to file with the IRS so that the exemption determination would be retroactive to the date of...

Nonprofit Law: CHAPLAINCY, harvey mechanic, organization license
harvey mechanic, organization license, legal functions: The State determines who can be officiating for certain legal functions such as marriages and the military of prison system may have regulations as to who can be accorded the priviledges of a chaplain. But other than that, anyone can call themselves a chaplain...

Nonprofit Law: Chamber of Commerce, harvey mechanic, income tax return
harvey mechanic, income tax return, federal income tax return: Well, it appears that the dues were paid in cash. Otherwise, how could checks made to the order of the Chamber be deposited directly into the account of the other organization. Strange. Anyway, it is not illegal for a nonprofit to decide to give cash donation...

Nonprofit Law: Changing the status from For Profit to Non-Profit, community recreation center, harvey mechanic
community recreation center, harvey mechanic, www irs gov: To obtain refunds you would first need to obtain a determination letter from the IRS that would state that your organization is exempt from income taxes and they would also need to state that they are granting the exemption retroactively to a certain date....

Nonprofit Law: Changing tax status from 501c 3 10 to 501 c 3, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, public charity: As you may know, the contributors to 501(c)(10) organizations may not deductible contributions unless those are to be used exclusively for the support of a recognized IRC 501 (c)(3) public charity. If your organization was a 501(c)(3), then all contributions...

Nonprofit Law: Chapter Establishments, harvey mechanic, legal hurdles
harvey mechanic, legal hurdles, tax filings: Well, some issues would be that, if you do not have separate incorporations for each chapter, you would be responsible for all of the organizations and tax filings. In any case, you would need to register with each State s corporation department. If you...

Nonprofit Law: Charging, volunteer fire department, harvey mechanic
volunteer fire department, harvey mechanic, governmental entities: Unless there is something in your Articles of Incorporation or bylaws or other internal rules then you would be able to charge. You would also need to see if your organization has any contracts with cities or other governmental entities that would address...

Nonprofit Law: Charitable Donations, harvey mechanic, charitable donations
harvey mechanic, charitable donations, california laws: As I wrote in my profile I do not deal with the specifics of the laws in all 50 states, but I can inform you that donations are generally governed by standard contract law. In other words, if you organization is doing what it promised to do it does not have...

Nonprofit Law: Charitable giving for Salaries, harvey mechanic, charitable donation
harvey mechanic, charitable donation, irs: I am assuming that yours is a 501(c)(3) organization and staff may raise funds for their own support. However, the persons giving the funds are not granted a charitable donation deduction. Also the staff, as employees soliciting for funds, should keep the...

Nonprofit Law: Charitable purpose - Grants to Individuals, www irs gov, harvey mechanic
www irs gov, harvey mechanic, purpose grants: Yes, the individuals need to be in a charitable class, like low income persons. The class underpriviledged is not a charitable class as only indicates their background, not their present condidtion. Harvey Mechanic Attorney At Law Harvey108@hotmail.co...

Nonprofit Law: Charities/Fund Raising, mr mechanic, charities fund
mr mechanic, charities fund, ms ann: Dear Ms. Ann, It is legal for a fund-raising organzation to hold a percentage of funds raised on behalf of a charity if it is based upon a contract. The issue of percentages is now in front of the U.S. Supreme Court, so you should keep track of the case....

Nonprofit Law: Charity Info, animal welfare society of southeastern michigan, animal welfare society
animal welfare society of southeastern michigan, animal welfare society, harvey mechanic: You can usually check on a charity and download their last IRS form 990 filing at www.guidestar.org (registration required). I did look there and the 2006 return is not yet up on that guidestar site, but 2005 and before are there. Harvey Mechanic Attorney...

Nonprofit Law: Cheer Booster Club, harvey mechanic, daughter graduates
harvey mechanic, daughter graduates, exemption application: Well, what about 2006 and expected for 2007? Gross income over $5000? If you want to contact me directly at Harvey108@hotmail.com it would probably be more appropriate compared to continuing on this public forum. Harvey Mechanic Attorney At Law ...

Nonprofit Law: Cheer booster clubs within a for profit business, harvey mechanic, irs 501 c 3
harvey mechanic, irs 501 c 3, comp fees: The fund-raising would be legal if the children declared their 95% as taxable income. Otherwise, it is illegal for a 501(c)(3) organization. Also the owners of the for profit should not be prominently involved in the 501(c)(3) organization that is the booster...

Nonprofit Law: Cheerleading Booster Club, harvey mechanic, www irs gov
harvey mechanic, www irs gov, cheerleading competition: Athletic Booster Clubs: Are They Exempt? by Cowen and Sack would cover many of the same issues that would need to be addressed for cheerleader boosters on the second last page and the last page. http://www.irs.gov/pub/irs-tege/eotopica93.pdf is a good...

Nonprofit Law: Cheerleading Booster Club, irs 501 c 3, club interest
irs 501 c 3, club interest, booster club: For your specific question, if you individually have authorization to approve expense items, you have wide latitude and the real question is whether it would be legal for you to spend funds for the benefit only of the seniors at the camp, if I understand you...

Nonprofit Law: Cheerleading Booster Club, high school cheerleading, harvey mechanic
high school cheerleading, harvey mechanic, school cheer: High Schools can charge fees for extracurricular activities so they may require participants in the cheer leaders to pay certain fees (or, in the alternative get funds, if the student wishes, from fundraising activities). However, your situation is different...

Nonprofit Law: Cheerleading Boosters, public disclosure requirements, irs gov
public disclosure requirements, irs gov, treasuer: FAQs About the Exempt Organization Public Disclosure Requirements www.irs.gov/charities/article/0,,id=96430,00.html Other than those documents mentioned as required by the IRS, the only reports that need to be given are those required by the organization...

Nonprofit Law: Choices on Incorporation, mr mechanic, irs filing
mr mechanic, irs filing, exemption application: From what you have informed me it appears that the best course would be to form a new organization. However, you would save on the IRS filing fee for the exemption application if you did not need to establish a new organization, but used the old organization....

Nonprofit Law: Choir and UBIT, unrelated business income, irs gov
unrelated business income, irs gov, harvey mechanic: Choir concerts are definitely related to their purposes as well as selling recordings of their own performance. Sales of computers would be unrelated but not taxable as sales of donated property is an exemption to the UBTI. www.irs.gov/pub/irs-pdf/p598.pdf...

Nonprofit Law: Choosing the Best Fiscal Year End, harvey mechanic, tax exempt status
harvey mechanic, tax exempt status, irs: I always recommend December 31 as the ending date of the fiscal year. Then it will match the period used by other organizations, such as financial companies that would be paying to you interest or dividends and also it matches the year used by grants making...

Nonprofit Law: Christian Nonprofit, harvey mechanic, internal revenue service
harvey mechanic, internal revenue service, income tax returns: I do not suggest that a nonprofit has a cleaning business as that is unrelated to exempt purposes. If another entity owns the cleaning business, that entity can donate to the Nonprofit, but, yes, the Nonprofit does need to apply to the Internal Revenue Service...

Nonprofit Law: Church Benevolence, sunday school teachers, church distribution
sunday school teachers, church distribution, taxable compensation: 1-5 Yes, that is all taxable compensation. Reported as miscellaneous income. The Board must not give more than reasonable compensation (considering services rendered). 6. Your church can relieve the distress of poor people but can not collect funds earmarked...

Nonprofit Law: Church budget, federal tax questions, food pantry
federal tax questions, food pantry, public charities: The church may hurt its pantry fund-raising efforts in the future if it uses the funds for any administrative expenses and the more administrative expenses of the church or expenses used for other purposes, like for the pastor, the more your future fund-raising...

Nonprofit Law: Church copier, unrelated business income, irs gov
unrelated business income, irs gov, harvey mechanic: Yes you can engage in that activity and it will not effect your exemption status as long as it remains less than 15% of your gross income. However, the sales and services to church members would be considered to be unrelated to your exempt functions and would...

Nonprofit Law: Church Facility Use, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, profit entity: The guest speaker who is given the opportunity to sell a book is considered a form of compensation to that person (free rental) which is prohibited by a church to give to a for-profit entity. As for other nonprofit groups, you can give them free rent if they...

Nonprofit Law: Church filing requirments, unrelated business income, unrelated business taxable income
unrelated business income, unrelated business taxable income, harvey mechanic: I do not see any contradiction with what I wrote to you earlier compared to the information from those other sources. That a church needs to file 1099s does not mean that the church needs to file 990s. I think that if you give me the web page from Peter...

Nonprofit Law: Church purchasing residential property, unrelated business income, harvey mechanic
unrelated business income, harvey mechanic, www irs gov: It is not clear yet from the facts as you presented whether the activity is unrelated business. One of the main factors is whether the church is engaged in the activity to obtain income. Also see: www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 ...

Nonprofit Law: Church rental, harvey mechanic, church purpose
harvey mechanic, church purpose, tax filings: Yes, a church can rent property to anyone. The income for rents are not taxed as unrelated income because of the exemption for rents and royalties to churches (unless the property is debt-financed). The church can use the proceeds for any church purpose,...

Nonprofit Law: Church usage question, private piano lessons, harvey mechanic
private piano lessons, harvey mechanic, rural church: The church should receive from the piano teacher for the use of the space at least as much as would be reasonable for a rental and that amount would need to be by a written contract and not described as donation from her. Harvey Mechanic Attorney At...

Nonprofit Law: Churches as nonprofits, harvey mechanic, nonprofit corporation law
harvey mechanic, nonprofit corporation law, tax exempt organization: Yes, a church that is tax-exempt but does not apply for 501c3 status can still be called a nonprofit organization. If it is incorporated in a State, then it can be listed according to the law of the State, such as Religious Corporation or Nonprofit Corporation(if...

Nonprofit Law: Churches, harvey mechanic, universal life church
harvey mechanic, universal life church, political aspirations: Where did you read that churches are exempt from being applied any law that Congress may legislate? As far as I know the IRS has applied its regulations against churchs many times. See Universal Life Church cases such as http://caselaw.lp.findlaw.com/cgi-bin/getcase.pl?court=9th&navby=case&no=9615122o...

Nonprofit Law: Citizens removing CEO and Board of non-profit, texas secretary of state, mr mechanic
texas secretary of state, mr mechanic, medicaid fraud: The Articles of Incorporation can be obtained for a small fee from the Texas Secretary of State s Office. It is public information. Bylaw changes are not required to be sent to anyone. It is for the internal operations of the corporation. The AG of Texas...

Nonprofit Law: Claiming 501c(6) donations prior to IRS determination, economic development corporations, professional football leagues
economic development corporations, professional football leagues, harvey mechanic: Donations to 501(c)(6) organizations are not deductible. As at: http://en.wikipedia.org/wiki/501(c)#501.28c.29.286.29 The 501(c)(6) is specifically reserved to Chamber of Commerce organizations, economic development corporations, real estate boards, trade...

Nonprofit Law: Clarification of non-prof status for tax receipts, harvey mechanic, irs issues
harvey mechanic, irs issues, irs agent: Tax id numbers are issued to regular businesses and tax-exempts also. Just that the IRS issues an EIN number does not mean that donors are qualified to deduct donations from their federal income tax returns. Actually donations for a particular person, like...

Nonprofit Law: Close Connection, irs form 1023, harvey mechanic
irs form 1023, harvey mechanic, sole proprietorship: any organization. If it does not specify, then we have to see the spirit and intent of the question and say that the organization could be unincorporated and even a sole proprietorship. Thank you. Harvey Mechanic Attorney at Law Harvey108@hotmail.co...

Nonprofit Law: Closing church, harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, independent church: Was the church incorporated? If so you would need to look to the Articles of Incorporation and Bylaws as to dissolution and assets. Also you would need to look to your state s law about that. If you give me your state I may be able to direct you. Harvey...

Nonprofit Law: Code of Ethics, doctor patient relationship, harvey mechanic
doctor patient relationship, harvey mechanic, state medical boards: A code of ethics may exist promulgated by the AMA or some State Medical Boards or Nursing assooications but then that would not be legally binding (it is not law). As I deal with law I can only inform you that there is no fixed law on the confidentiality...

Nonprofit Law: Collecting Internet Sales Tax for Non-Profit, harvey mechanic, internet sales tax
harvey mechanic, internet sales tax, maryland annotated code: sales of property stored in the State pending shipment to another state are exempt http://mlis.state.md.us/other/Legislative_Handbooks/Volume%20III/chapter4.htm which is from 1998 and, for updates you can consult, as they listed at the bottom of that article...

Nonprofit Law: Colorado nonprofit dissolution, harvey mechanic, voluntary dissolution
harvey mechanic, voluntary dissolution, current board: The current board can file for dissolution with the State but most State s require an affidavit of no debts from a corporation officer. You usually can check by obtaining the forms and instructions right from the Secretary of State s office in Colorado (online...

Nonprofit Law: Commercial Investment Property (Large Apt. Buildings & Retail Strips), federal tax questions, commercial investment property
federal tax questions, commercial investment property, property tax exemptions: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. What you are concerned about most, it appears, is real property tax exemptions which are governed by the State in which the property is located....

Nonprofit Law: Commercial transactions between members of a 501c3, hospitality exchange, collective consciousness
hospitality exchange, collective consciousness, organization status: I believe that we had some communication about one year ago. Anyway, you wrote that your organization had already applied for 501(c)(3) organization status with the IRS. I am assuming that the approval did not come yet. I would need to spend a substantial...

Nonprofit Law: Common public policy, harvey mechanic, 5th ammendment
harvey mechanic, 5th ammendment, religious corporation: I do not know why you are asking about common public policy . I believe that you are asking about churches advocating positions, which is allowed. What is not allowed is legislative activity per se. If you still want to ask about common public policy,...

Nonprofit Law: Community recreational facility, long term leases, youth sports league
long term leases, youth sports league, mcsb: You would need to notify the IRS if you purchase that business. Your exemption application may not have included such purposes and projected expenditures. Exempt organizations determination letters state that if its mode of operation changes it must notify...

Nonprofit Law: Comp Cheer Fundraising, irs publication 557, federal tax questions
irs publication 557, federal tax questions, form 990 ez: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. If you want to run this as an ordinary business this would not be the proper forum. However...In order to have donations deductible by the...

Nonprofit Law: Concerning a donation to this non-profit from a NY City resident, judicial accountability, insult to injury
judicial accountability, insult to injury, deductible status: Mr. Cushman, Donating a building to a nonprofit is better in that, when the nonprofit sells the building it will not incur capital gains taxes. That would result in a larger donation to the nonprofit, compared to him selling the building, paying capital...

Nonprofit Law: Concessions Stand Sales By Non-Profit Organization, harvey mechanic, food concessions
harvey mechanic, food concessions, soccer foundation: That is no problem as long as it only is for the convenience of the visitors to the non-profit soccer games or operated by volunteers or does not generate more than 15% of the income. If it does not qualify under these three categories you would need a follow...

Nonprofit Law: Conflict of Interest, excess benefit transaction, excess benefit transactions
excess benefit transaction, excess benefit transactions, www irs gov: Intermediate Sanctions which is usually in the form of Excise Tax on Excess Benefit Transactions. An IRS article about that is at: http://www.irs.gov/pub/irs-tege/eotopice04.pdf Section 4958 imposes an excise tax on excess benefit transactions between...

Nonprofit Law: Conflict of Interest, independent auditors report, www irs gov
independent auditors report, www irs gov, harvey mechanic: Well, if most of the Board of the nonprofit did not know anything about the relationship between their CEO and the for-profit company, the IRS would not be assessing sanctions against the nonprofit but only go after the CEO and that consulting firm. Does that...

Nonprofit Law: Contributions for a specific use, irs publication 557, www irs gov
irs publication 557, www irs gov, tax exempt status: No. I suggest you read page 12 of the IRS publication 557, Tax Exempt Status for Your Organization at: http://www.irs.gov/pub/irs-pdf/p557.pdf Therein, there are several important paragraphs such as on the right side: Disclosure of Quid Pro Quo Contributions...

Nonprofit Law: Corporate Foundation, public charity status, harvey mechanic
public charity status, harvey mechanic, corporate foundation: Generally, a public charity receives funding from a wide group whereas a private foundation is funded by a family or a really small group and the corporate foundation is funded by a corporation or a corporate group. It is beneficial to achieve public charity...

Nonprofit Law: Crazed Youth football President, harvey mechanic, www irs gov
harvey mechanic, www irs gov, irs news: Usually the Board handles such matters. Complaints could go to your State s Attorney General s Office as they generally oversee charities within the state. IRS Complaints regarding Exempt Organizations www.irs.gov/charities/article/0,,id=131651,00.html...

Nonprofit Law: Creating an NPO, harvey mechanic, npo
harvey mechanic, npo, attorney at law: No. The activities that you have must be charitable, religious or educational. Where you funds go is an issue, but not the first issue. Therefore, your organization would not qualify as a nonprofit organization in the United States. Harvey Mechanic ...

Nonprofit Law: Creating a nonprofit organization?, irs publication 557, harvey mechanic
irs publication 557, harvey mechanic, www irs gov: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations you would want to first incorporate with at least 3 unrelated directors for yours to become a public charity (some state statutes allow less than...

Nonprofit Law: Criminal activity within a youth sports league, youth sports league, harvey mechanic
youth sports league, harvey mechanic, youth football league: It would be a civil matter, but in serious cases, sometimes the State s Attorney General is able to assist. I would recommend that you first look into the Articles of Incorporation and bylaws and that will probably allow the Board of Directors to demand an...

Nonprofit Law: Cross line from public charity to public foundation., irs publication 557, irs gov
irs publication 557, irs gov, harvey mechanic: There are detailed rules by the IRS in determining what is called the public support test. You may see them in IRS Publication 557 Tax Exempt Status for Your Organization www.irs.gov/pub/irs-pdf/p557.pdf starting on page 31 Qualifying as Public Supported...

Nonprofit Law: Currently 501 (c)3 looking to transition into a Church, federal tax questions, harvey mechanic
federal tax questions, harvey mechanic, public charities: You would need to review the Articles of Incorporation and Bylaws and any resolutions of your corporation and make proper amendments, if any, that are required. Then you would submit Schedule A of Form 1023 to the IRS with a written request for a change to...

Nonprofit Law: I care for my mom who is a..., harvey mechanic, tax exempt status
harvey mechanic, tax exempt status, public charities: The government does not grant nonprofit tax exempt status to organizations for private benefit, but only for public benefit. Therefore, unfortunately, what you propose is not allowable. However, you may find public charities that are willing to assist...

Nonprofit Law: carrying over funds from one fiscal year to the next, harvey mechanic, scholarship grants
harvey mechanic, scholarship grants, public charities: No problem carrying over funds from year to year just so after a few years the IRS would not see that you are accumulating without a good reason. A good reason is to build an endowment fund, or to save for a real estate purchase, etc. The IRS would also...

Nonprofit Law: changing fiscal year, irs gov, harvey mechanic
irs gov, harvey mechanic, irs approval: As you need a full year, I think you meant that your current fiscal year ends on September 30th. Anyway, to change your fiscal year you would complete IRS form 1128 and wait for IRS approval www.irs.gov/businesses/small/article/0,,id=98673,00.html and...

Nonprofit Law: changing status, mutual benefit corporation, legal hurdles
mutual benefit corporation, legal hurdles, articles of incorporation: No, according to Oregon Revised Statutes sections that deal with Nonprofits. 65.431 (2) A corporation designated on the records of the Office of the Secretary of State as a public benefit or religious corporation may amend or restate its articles of...

Nonprofit Law: charity, harvey mechanic, www irs gov
harvey mechanic, www irs gov, income tax purposes: That is not eligible for nonprofit organization status. You may be interested to read www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is page 7 of the pdf file) Charitable Class . The forum is only for federal questions regarding nonprofit...

Nonprofit Law: checking on a non-profit, public disclosure requirements, irs gov
public disclosure requirements, irs gov, harvey mechanic: If that organization has been granted exemption by the IRS, yes, there are some public records. The word profit is not applicable to nonprofit organizations by definition and if that organization is a public charity instead of a private foundation there are...

Nonprofit Law: cheer booster club, harvey mechanic, www irs gov
harvey mechanic, www irs gov, automatic members: It sounds like this nonprofit booster club is not being operated according to nonprofit regulations of the IRS. Please look at the article http://www.irs.gov/pub/irs-tege/eotopica93.pdf and then get back to me if you still have questions. Harvey Mechanic...

Nonprofit Law: child abuse risk, abuse prevention program, child abuse prevention
abuse prevention program, child abuse prevention, volunteer docents: This is not an issue that is specifically for non-profit organizations, as it is also a matter that for-profit organizations need to address. In any case, if you have contact with your local law enforcement (police), inquire from them whether you can run...

Nonprofit Law: childrens hospital, harvey mechanic, local hospital
harvey mechanic, local hospital, raffles: Each state has its own regulations regarding individuals or nonprofits setting up raffles, as states do have jurisdiction over gambling in their respective states. Usually only nonprofit organizations would allow raffles. Let me know the name of the state...

Nonprofit Law: church bookstore, harvey mechanic, business tax returns
harvey mechanic, business tax returns, church budget: The church can own a bookstore but sometimes it would want to have a separate entity. You would also, if you are selling non-religious items, need to file unrelated business tax returns and, if the business amounts to a large part of your income, it may affect...

Nonprofit Law: church businesses, irs income tax, harvey mechanic
irs income tax, harvey mechanic, income tax returns: The performing arts would incorporate as a nonprofit organization and would normally receive exemption from the IRS for income in furtherance of those exempt purposes. It will not be a nonprofit within a nonprofit. Harvey Mechanic Attorney At Law Harvey108@hotmail.co...

Nonprofit Law: church collecting rent, irs gov, harvey mechanic
irs gov, harvey mechanic, worship activities: Yes, as long as the church maintains the worship activities for which it obtained IRS exemption. Please read pages 14-19 on Unrelated debt-financed property. www.irs.gov/pub/irs-pdf/p598.pdf Harvey Mechanic Attorney At Law Harvey108@hotmail.co...

Nonprofit Law: church deaconal, www irs gov, harvey mechanic
www irs gov, harvey mechanic, gov pub: Yes, as long as the church membership is large enough so that the class size is not a problem. You may be interested to read www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is page 7 of the pdf file) Charitable Class Also please note...

Nonprofit Law: church funds, public disclosure requirements, federal tax questions
public disclosure requirements, federal tax questions, harvey mechanic: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. Well, unless the Articles of Incorporation or Bylaws or any resolutions specify, the church has no obligation to disclose except for what the...

Nonprofit Law: church renting property, harvey mechanic, 501c status
harvey mechanic, 501c status, renting property: I do not deal with the city tax issues but, as for the IRS, you would not lose your 501(c)(3) status as a church as long as your organization is maintaining a substantial amount of religious worship services for the public and the rental income is not the...

Nonprofit Law: church start up, state tax exemption, harvey mechanic
state tax exemption, harvey mechanic, internal revenue service: Do you want to incorporate? If so, first incorporate with at least 3 unrelated directors in your State as a nonprofit corporation. For either incorporated or unincorporated churches you would then have the option to apply to the Internal Revenue Service (IRS)...

Nonprofit Law: church tax, irs forms, harvey mechanic
irs forms, harvey mechanic, www irs gov: If the the church and the school are the same corporation then the answer clearly is yes. If there are two corporations, then it would depend upon the corporate structure and the relationship of the two entities, but from what you have informed me I believe...

Nonprofit Law: compensation-commission, harvey mechanic, commission basis
harvey mechanic, commission basis, arrangment: Such an arrangment may be srutinized by the IRS to see if the commission structure is prohibited as a distribution of profits , which, of course, is prohibited by definition for nonprofits. I would need to review all of the details to give you a definitive...

Nonprofit Law: competitive cheer booster clubs, harvey mechanic, irs code
harvey mechanic, irs code, cheer squad: You do not have to be a nonprofit organization but then donors will not be able to deduct their donations in accordance with the IRS code. If you are not going to be a not-for-profit organization your check writing would not matter... you can have the parents...

Nonprofit Law: Is this conflict of interest?, harvey mechanic, continuing education credits
harvey mechanic, continuing education credits, hospice nurses: Yes, you could set up a nonprofit educational organization just so the nonprofit does not benefit the mortuary directly by, for example, the distribution of literature that has advertisements for the mortuary or comments by the speakers that would be advertisements...

Nonprofit Law: conflict of interest, excess benefit transaction, excess benefit transactions
excess benefit transaction, excess benefit transactions, www irs gov: Yes, that is a conflict of interest issue when someone in a 501(c)(3) organization on the Board decides upon compensation to themselves. However, as long as the compensation is not excessive it should not result in Intermediate Sanctions. Intermediate Sanctions...

Nonprofit Law: conflict of interest/personal gain, harvey mechanic, hotmail
harvey mechanic, hotmail, cease and desist letter: Yes, that is a clear conflict of interest. Your organization may sell advertising but only if you receive at least a reasonable return and the persons who have the conflict of interest should recuse themselves from the consideration by the booster club board...

Nonprofit Law: conflict of interest, harvey mechanic, personal apparel
harvey mechanic, personal apparel, apparel company: It may be illegal in a civil sense, but probably not criminal. Civil sense means that someone on behalf of the Non-profit may have a case for damages against the seller if the Non-profit is not following proper procedures. Thank you. Harvey Mechanic...

Nonprofit Law: creating a not for profit entity, harvey mechanic, www irs gov
harvey mechanic, www irs gov, neighborhood association: No it would not be a 501(c)(3) organization. It would be under either 501(c)(4) or 501(c)(7). For an IRS article see: www.irs.gov/pub/irs-tege/eotopicr82.pdf As I wrote in my profile, I do not answer State questions but you can email the attorney at...

Nonprofit Law: Dance Parent organization, harvey mechanic, irs service
harvey mechanic, irs service, employer identification number: Is your organization incorporated? In any case, In order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations and not to be treated by the IRS as a normal, for-profit business, you would need to apply to the IRS...

Nonprofit Law: DEALING WITH A TRAITOR, harvey mechanic, malicious acts
harvey mechanic, malicious acts, government grants: A President has a duty of loyalty which includes, in some states, enumerated other duties, such a not to compete. If you give me your State I may be able to direct you to the relevant code sections. Usually, yes, legal action could be taken against such a...

Nonprofit Law: Debt financing and Board Compensation, excess benefit transaction, www irs gov
excess benefit transaction, www irs gov, internal revenue service: 1. No. 2. No. Just so it is not excessive According to the US Internal Revenue Service (IRS): ”An excess benefit transaction is a transaction in which an economic benefit is provided by an applicable tax-exempt organization, directly or indirectly,...

Nonprofit Law: Design company as a 501C-3, harvey mechanic, janitorial company
harvey mechanic, janitorial company, 501c 3: Organizations that engage in support services for nonprofits are not qualified to become nonprofits unless the activities themselves are religious, educational, or charitable in the traditional sense and the operation is not like that of a normal commercial...

Nonprofit Law: Designated Church Gifts, harvey mechanic, irs rules
harvey mechanic, irs rules, personal benefit: Greeting, 1. No, not unless he had a contract with the church when he made the donation indicating such. 2. Yes, that would be a violation of IRS rules as benefiting a named individual. 3. Yes, the church does not need to give the money back unless...

Nonprofit Law: Designated Gift, irs gov, harvey mechanic
irs gov, harvey mechanic, gov pub: This is called a donor advised donation. If the church could on its own use its funds to pay for the training, then it may consider a donor advised donation. I believe that a church can use its funds to pay for training for a staff member if that training...

Nonprofit Law: Designated Gifts, harvey mechanic, request donations
harvey mechanic, request donations, winter shelter: The tax guide is correct. A trust may be implied but the donor can not enforce it under common law. Sometimes, however, the attorney general of the state may sue the charity under that trust provision, but that is rare and usually only when there is a large...

Nonprofit Law: Direct Transfers, irs gov, harvey mechanic
irs gov, harvey mechanic, personal bank account: The Board of Directors, without the owner of the equipment voting, would need to approve such an expenditure. Also it would only pass IRS regulations if the expenditure was clearly in the best interest of the nonprofit. Still there may be a problem, as there...

Nonprofit Law: Director of nonprofit with nonimmigrant Visa, harvey mechanic, introductory brochure
harvey mechanic, introductory brochure, student visa: http://www.dos.state.pa.us/corps/lib/corps/guidetobusreg/businessguide.pdf is the introductory brochure which you should read at page 14. http://www.pacode.com/secure/data/019/chapter41/chap41toc.html shows the requirements for incorporation of a nonprofit...

Nonprofit Law: Disabililty, motor neuron disease, upper motor neuron
motor neuron disease, upper motor neuron, harvey mechanic: You do not need a lawyer for your initial claim. If you are referring to a filing with Social Security, even if you have a strong claim, they sometimes deny and you have to appeal. Thank you. Harvey Mechanic Attorney at Law Harvey108@hotmail.co...

Nonprofit Law: Disabled individuals tax exemption, sales tax exemption, harvey mechanic
sales tax exemption, harvey mechanic, s sales: No, only the organization may use the sales tax exemption unless your State law allows such personal use. You can inquire from your State Office of Sales Tax or give me the State and I will see if there is anything on the net about that type of exemption....

Nonprofit Law: Disbursal of funds to board member from medical bills, harvey mechanic, www irs gov
harvey mechanic, www irs gov, advisory board members: No, that is not an educational purpose. You may be interested to read www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is page 7 of the pdf file) Charitable Class which discusses similar issues. Harvey Mechanic Attorney At Law Harvey108@hotmail.co...

Nonprofit Law: Disclosure to Board, irs web page, public disclosure requirements
irs web page, public disclosure requirements, irs gov: Yes, any exempt organization has a duty to disclose certain information. FAQs About the Exempt Organization Public Disclosure Requirements www.irs.gov/charities/article/0,,id=96430,00.html To look for organizations eligible to receive tax-deductible...

Nonprofit Law: written disclosure, irs gov, harvey mechanic
irs gov, harvey mechanic, irs publication: Yes, the disclosure can be on the receipt or letterhead and signed by an authorized officer. In whatever form, it should have the name of the organization, as in its 501(c)(3) organization determination letter from the IRS and its EIN (tax identification...

Nonprofit Law: Disclosure of Quid Pro Quo Contributions, harvey mechanic, disclosure letter
harvey mechanic, disclosure letter, selling jewelry: It appears that you are selling the jewelry and the nonprofit is not selling the jewelry. Therefore, you are not subject to pub 557 as you are a for-profit entity. If, however, the nonprofit is running the jewelry business let me know and I will follow up...

Nonprofit Law: Discrimination & Non profit corporation, state employment laws, employment law questions
state employment laws, employment law questions, harvey mechanic: For Federal law that uses the word employee as Title VII and ADA, no. Are volunteers considered employees within the meaning of the ADA? Volunteers generally are not protected employees. But an individual may be considered an employee, as a result...

Nonprofit Law: Display advertising as tax-deductible donations, unrelated business income, unrelated business taxable income
unrelated business income, unrelated business taxable income, irs gov: If you sell something, then the person who is buying is not giving a donation. Further, your nonprofit advertising income is taxable as unrelated business taxable income. See IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations...

Nonprofit Law: Dissolution of 501 c 3, florida secretary of state, articles of incorporation
florida secretary of state, articles of incorporation, florida church: In order to become a 501(c)(3) organization you would have had to have in your Articles that, upon dissolution, your assets would be distributed to another 501(c)(3) organization. You should, however, obtain from the Florida Secretary of State s office a...

Nonprofit Law: Dissolution of 501c3, harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, going away party: You would need to look to your Articles of Incorporation for its dissolution clause which will indicate what needs to be done with the funds. No, you may not use the funds for a going away party as yours is a 501(c)(3) organization and is only supposed to...

Nonprofit Law: Dissolution law - Florida, sample articles of incorporation, federal tax exemption
sample articles of incorporation, federal tax exemption, irs website: The forum is only for federal questions regarding nonprofit organizations as I have explained in my profile. However, you can see the Florida law for dissolution: 617.1401 Voluntary dissolution of corporation prior to conducting its affairs. 617.1402...

Nonprofit Law: Dissolution, harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, voting members: It would take at least a vote of the Board to dissolve unless there is some other indication in the Articles of Incorporation or Bylaws. The State law may require more, especially if there are voting members of the corporation. Harvey Mechanic Attorney...

Nonprofit Law: Dissolve a 501c3 Nonprofit, irs gov, harvey mechanic
irs gov, harvey mechanic, charitable nonprofit organization: You would only need to follow what is in the dissolution clause of your Articles of Incorporation which clause was mandated by IRS rules for 501(c)(3) organizations. You should then notify the IRS that your organization has been dissolved after the State...

Nonprofit Law: Dissolving a Non-Profit Organization, harvey mechanic, internal revenue code
harvey mechanic, internal revenue code, articles of incorporation: As for the assets, you would first look to the State law and then to your Articles of Incorporation and Bylaws. If you give me the subsection of Internal Revenue Code 501(c) that the team is organized under, I can inform you of the general rules. As for the...