About Experts Sitemap - Group 38 - Page 49 2016-07-19

Nonprofit Law: How to handle funds for trips, fundraising funds, school fundraisers
fundraising funds, school fundraisers, internal revenue code section: You wrote earlier that your proposal was to fund all of the students equally but that some families could not afford the portion that was not funded by the boosters. Therefore, you do not need to fund them more than others and they would not go on the trip....

Nonprofit Law: by law review complications, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. However, I will give you something to think about as to this State law matter. You wrote that the Board was asked...

Nonprofit Law: Legal Status of, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, wisconsin state law: I would need to check Wisconsin case law before I could give you any further opinion as to whether it would be considered misrepresentation. I would be willing to work on your matter, but I would need to spend a substantial amount of time and that would be...

Nonprofit Law: LIttle League Baseball, little league baseball, www irs gov
little league baseball, www irs gov, participation registration: The IRS explains at: www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf on page 72-73 (takes a while to load as it is a 91 page pdf file): --start of excerpt --- The use of the term volunteer generally has no significance in applying the tax law.......

Nonprofit Law: Membership dues, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, harvey mechanic: Yes, as long as your organizational documents are proper for a 501(c)(3) organization and you are operating as a 501(c)(3) organization should, then you can start operating. The IRS may take months to issue the exemption determination letter, but as long...

Nonprofit Law: New Booster Club Laws/Rules, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, sports booster club: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. There are no new federal rules. I suggest that you ask your ASB Director for the URL for the new rule (and if you...

Nonprofit Law: NON Porfit 501c3, casino style games, attorney client relationship
casino style games, attorney client relationship, harvey mechanic: Games of chance that are not specifically allowed under these statutes, such as poker and casino-style games, are prohibited. http://www.gambling-law-us.com/Charitable-Gaming/Texas/ Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S....

Nonprofit Law: Non-Profit 501c3 Distribution of Funds, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, public charities: The IRS has written, that Assisting the Sick or Handicapped may be an exempt purpose. I know you are not proposing a hospice but, as you may know, a hospice may certainly be exempt. http://bquot.com/eq4 Therefore, if you have determined a proper class,...

Nonprofit Law: Non-profit funds, animal rescue organization, attorney client relationship
animal rescue organization, attorney client relationship, www irs gov: If he is not informing people that donations to the nonprofit are deductible by donors on their federal income tax returns, then the issues are state issues under Florida law. From what you wrote to me he has misrepresented the beneficiaries of charitable...

Nonprofit Law: Non profit restructuring advice, harvey mechanic, profit group
harvey mechanic, profit group, attorney at law: Sorry, but I don t know of any free services such as you are requesting. My rates, though, are very reasonable. If you want to inquire about hiring me for such work, please contact me directly to the email address below as I don t discuss fees on this free...

Nonprofit Law: Non profit softball team sponsor, irs publication 526, harvey mechanic
irs publication 526, harvey mechanic, www irs gov: I would need to review any contract between the organization and the sponsor to give you my opinion whether the sponsor would have any course of action, but it appears from what you wrote that the contract is not between you are the team. If you do have such...

Nonprofit Law: nonprofit expenditures to private business, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: A 501(c)(3) organization is not organized to support a private dance business. However, a 501(c)(3) organization may support youth in their dance activities. If the 501(c)(3) organization purchases items for the for-profit dance studio and those items,...

Nonprofit Law: Nonprofit to Help Individuals, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: That may be allowed, if your organization contacts all of the class to give them the availability. ---Start of Excerpt-- A disaster relief or emergency hardship organization will avoid the problem of a limited class if, in addition to meeting the other...

Nonprofit Law: Can an NPO donate to an org that is not listed as NPO, www irs gov, substantial contributor
www irs gov, substantial contributor, internal revenue service: A 501(c)(3) organization may fund individuals or non-exempt organizations. 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...

Nonprofit Law: preschool separate incorporation, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Well, you should make sure that you have proper procedures for training and supervising your help. The lack of that is, by far, the greatest source of exposure. But what does not the preschool have to protect? Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com...

Nonprofit Law: Private Benefit In Charitable Giving, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs regs: What you refer to is a donation with a retention of a life estate, which is relatively common. For example, the University of Washington Foundation has a two page brochure in pdf format which is available at http://www.washington.edu/giving/docs/life-estates...

Nonprofit Law: Not-for-Profit, irs determination letter, technical advice memorandum
irs determination letter, technical advice memorandum, irs national office: 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. If you do it for many years, then...

Nonprofit Law: How to receive international donations fora 501c3, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: I am assuming that you are referring to a U.S. 501(c)(3) organization. Generally, unless the non U.S. donor has U.S. income and is from a country that has a tax treaty with the United States, there is no tax benefit to the donation. See the middle column...

Nonprofit Law: Requirement of youth organizations, school hockey team, high school hockey team
school hockey team, high school hockey team, high school hockey: You have what is called an unincorporated association and the IRS does not require unincorporated clubs to incorporate or obtain exemption determination when the requirements that we discuss below are fulfilled. The IRS explains that, when applying for...

Nonprofit Law: swim booster club, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs regulations: I am assuming that a bonding night is a valid activity for a charitable or educational organization. My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/ehXcH and you may be interested to read that. You will see...

Nonprofit Law: Tax-Id for banking purposes only, german language school, attorney client relationship
german language school, attorney client relationship, harvey mechanic: I have not received any reports about people having difficulty opening a bank account. But, before I discuss the details, you would need to inform me whether the school is a nonprofit corporation and, if not, what is its form of organization (unincorporated...

Nonprofit Law: Use of donation monies, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Generally, donors give up any authority over donated items and funds, unless they had a specific signed agreement with the nonprofit with a reverter clause or at least a letter indicating the conditional nature of the gift. This an issue called enforceability...

Nonprofit Law: 501(c)(3)?, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: A 501(c)(3) organization must be primarily charitable, educational or religious and you explained that the group is primarily a social group and, therefore, the only possibility left would be a 501(c)(7) recreational or social organizations qualification and...

Nonprofit Law: 501c3 fraud, federal communications commission, parent teacher association
federal communications commission, parent teacher association, tax exempt number: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issue about state sales tax is controlled by state law and states may differ somewhat with how they would treat...

Nonprofit Law: 990ez schedule N dissolution, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: Links to Form 990-Ez is through: http://www.irs.gov/pub/irs-pdf/f990ez.pdf and the instructions at: http://www.irs.gov/pub/irs-pdf/i990ez.pdf and, on the right column of page 18 of those instructions we see: --- Start of Excerpt --- A significant disposition...

Nonprofit Law: Alumni Council, irs publication 557, www irs gov
irs publication 557, www irs gov, nonprofit university: 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 make sure that your unincorporated nonprofit articles of association...

Nonprofit Law: asset sale, attorney client relationship, unrelated business taxable income
attorney client relationship, unrelated business taxable income, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I will only be addressing federal taxes, not New Jersey taxes. See pages 14-19 of http://www.irs.gov/pub/irs-pdf/p598.pdf...

Nonprofit Law: Athletic Club hotel expenses, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: As the members pay a fee the club may refund part of those fees at the end of the year. 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...

Nonprofit Law: Auto revocation for diregarded entity, irs web page, www irs gov
irs web page, www irs gov, tax exempt status: On page 5 of the IRS publication at http://www.irs.gov/pub/irs-tege/faqs_eo_annualreporting_schr.pdf we see that: --- Start of Excerpt --- • Disregarded entities. Except for reporting of disregarded entities in Schedule R, Part I, disregarded entities...

Nonprofit Law: Baseball Team, semi pro baseball, www irs gov
semi pro baseball, www irs gov, gross receipts: You are welcome. If your players are paying you for services you provide to them, then yes, that is taxable as employment income. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended to be a general statement of law,...

Nonprofit Law: Board of Directors, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: No immediate notification is required to the IRS unless your application for exemption is still pending. The normal filings (Form 990) are all that are required to the IRS. and http://goo.gl/7fmtq explaines which forms of the 990 series to file. Harvey...

Nonprofit Law: Dance Team Booster Funds, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs regulations: Those funds have to benefit every member of the dance team and not just specific members if the boosters organization is a 501(c)(3) organization. My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/RO1ez and you may...

Nonprofit Law: Dissolution of a Delaware nonprofit corporation, cy pres doctrine, attorney client relationship
cy pres doctrine, attorney client relationship, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. For an organization to qualify under the Internal Revenue Code as a 501(c)(3) organization it must have dissolution...

Nonprofit Law: donation to member of 501C3, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, 501c3 organization: No. Not unless that memorial fund is itself a 501(c)(3) organization. Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv has, in part, that the 501(c)(3) organization must be operated exclusively for...

Nonprofit Law: FOOTBALL TEAM, irs determination letter, technical advice memorandum
irs determination letter, technical advice memorandum, youth football league: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. I am assuming from what you wrote to...

Nonprofit Law: fraudulent 501(c)(3), attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: Complaints could go to your State s Attorney General s Office as that office generally oversees charities within the state. If the action is criminal then your local district attorney may be interested in prosecuting as at: https://docs.google.com/open?id=0B4xNuGSpiyzgT3BybmZKSGxNa1U...

Nonprofit Law: GYM BOOSTER CLUB, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, small claims court: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. It appears that there was no such club. If you have a contract matter of dispute you can take that to small claims...

Nonprofit Law: Gymnastic Boosters Account, www irs gov, cancellation request
www irs gov, cancellation request, gym fees: It appears that you had an oral or written contract with the booster organization that, if you put funds in to your daughter s account it would be used for her gym fees. It is not a donation any more than college tuition is a donation. The IRS has written...

Nonprofit Law: HOA changes in bylaws without a vote, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for relevant federal exempt issues of 501(c)(3) organizations. Homeowners Associations generally are not exempt under 501(c) See www.irs.gov/irm/part7/irm_07-025-004.html#d0e234 IRC 528... provides...

Nonprofit Law: homeowner associations, property owner associations, attorney client relationship
property owner associations, attorney client relationship, harvey mechanic: See www.irs.gov/irm/part7/irm_07-025-004.html#d0e234 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 found it difficult...

Nonprofit Law: Initial Investment for a Non-Profit, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I do not yet know whether your nonprofit would be granted IRS exemption as a 501(c)(3) organization (even not considering your investment plan). However, assuming that it would be granted 501(c)(3) organization status, a 501(c)(3) organization may make arrangements,...

Nonprofit Law: money c3 and c6, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations which are not private foundations. You used the work foundation but, as to public charities. there is no prohibition...

Nonprofit Law: money from c6 to c3, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: As long as the c6 does not have any internal prohibition, such as in its Articles of Incorporation or Bylaws, it may give money for the start-up of a c3. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended to be...

Nonprofit Law: Non profit merger, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. You did not specify what types of nonprofits, but, I am assuming that you are referring to 501(c)(3) organizations....

Nonprofit Law: non profit sale, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, private shareholder: You wrote that you are in Puerto Rico. I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. As for the IRS, a 501(c)(3) organization is not owned by anyone and, therefore,...

Nonprofit Law: pass throug money, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: If the church gives that elder an acknowledgement of a donation, then the church is conspiring to evade federal income taxes. 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: Religious Status, harvey mechanic, irs approval
harvey mechanic, irs approval, internal revenue service: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The IRS allows for such a switch from non-religious to religious. If you have substantial changes in your mode of...

Nonprofit Law: renting a home, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: See IRS Publication 526 Charitable Donations which is available at http://www.irs.gov/pub/irs-pdf/p526.pdf especially on page 9 the IRS writes about partial interests under the heading Partial Interest in Property which means that donations of...

Nonprofit Law: Reverse Triagular Merger and NFPs, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations that are public charities (not treated as private foundations). The general rule is that a public charity may control...

Nonprofit Law: Rules for Monetary Gifts from Non-profits, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: See 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: Scholarship distribution, public charity status, attorney client relationship
public charity status, attorney client relationship, private foundation status: Did your organization receive public charity status (or, in the alternative, private foundation status). It will be on the determination letter from the IRS that the organization is exempt under section 501(c)(3). After you give me that information I will...

Nonprofit Law: tax break?, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: See IRS Publication 526 Charitable Donations which is available at http://www.irs.gov/pub/irs-pdf/p526.pdf especially on page 9 the IRS writes about partial interests under the heading Partial Interest in Property which means that donations of...

Nonprofit Law: Tumbling Team Association Fundraising Requirements, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs regulations: My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/RO1ez and you may be interested to read that. If you want all families to work to receive benefits, then you would not be able to have a 501(c)(3) organization,...

Nonprofit Law: 501 (c)(3) for equine assisted psychotherapy, psychotherapy program, equine assisted psychotherapy
psychotherapy program, equine assisted psychotherapy, pleasure horses: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations that are not private foundations and I am, therefore, assuming that your organization will be qualifying as a public...

Nonprofit Law: 501(C)3 second change in fiscal year, www irs gov, harvey mechanic
www irs gov, harvey mechanic, business income tax: I am assuming, from what you wrote, that you already found out that the fee is $1500 for filing Form 1128 is filed as mentioned at the top of page 2 of: www.irs.gov/pub/irs-news/other_irs_user_fees.pdf www.irs.gov/pub/irs-pdf/f1128.pdf is the form 1128...

Nonprofit Law: 501c3, irs 990 forms, animal rescue group
irs 990 forms, animal rescue group, attorney client relationship: http://www.irs.gov/pub/irs-prior/f990--2010.pdf is the form 990 for the year 2010 and the one for 2011 will be similar. Part III Statement of Program Service Accomplishments at 4a and 4b is where you can give as many details as to the two different programs...

Nonprofit Law: 501c3 benefits to non-members, unrelated business income, www irs gov
unrelated business income, www irs gov, private shareholder: First let me backtrack as it is not clear how often the boosters have Movie Night . If it is only once per year that is no problem, but otherwise, it would be. Have their attorney cite to some law, as I have, and then I can reply to his opinion. But,...

Nonprofit Law: 501c3 Donating to a for profit, www irs gov, private benefit
www irs gov, private benefit, gov pub: A 501(c)(3) organization is not permitted to raise funds for a taxable entity. However, a 501(c)(3) organization may raise funds for youth educational and grant the funds for that particular purpose to a for-profit entity to engage in those particular activities....

Nonprofit Law: 990 not filed?, attorney client relationship, irs website
attorney client relationship, irs website, harvey mechanic: Links to Form 990/990-EZ/990-N are available at http://goo.gl/ivlRv and http://goo.gl/7fmtq explain s which 990 series return to file. After 3 years of non-filing in a row, the IRS could revoke exemption. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com...

Nonprofit Law: Avoiding the requirement to file a 990 or 1120, payroll tax forms, corporate income taxes
payroll tax forms, corporate income taxes, determination letters: That sentence about co-owners is not relevant to your unincorporated group. It would only apply to the situation when there are more than one owner of real property. You already informed me that there is only one owner of the real property... the 501(c)(7)...

Nonprofit Law: booster club fees with benefits, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: No one is required to join a 501(c)(3) booster organization, but if they do, and they pay some membership fees, they can get some tangible benefits in return for the membership fee. As to charitable deductions, see IRS Publication 526 Charitable Donations...

Nonprofit Law: boosters club, www irs gov, booster fund
www irs gov, booster fund, boosters club: See http://www.irs.gov/pub/irs-tege/eotopica93.pdf starting on pages 11 Private Facility Owners which discusses prohibited private benefit and excessive control of the booster organization by such private facility owners. Your situation is even worse,...

Nonprofit Law: Bylaws/Board of Directors, volunteer fire department, nonprofit corporations
volunteer fire department, nonprofit corporations, articles of incorporation: I am assuming, from what you wrote, that your organization is a nonprofit corporation. The Texas Code sections for Nonprofit Corporations are available at: www.statutes.legis.state.tx.us/Docs/BO/htm/BO.22.htm If your organization is not a nonprofit...

Nonprofit Law: compensation for musicians when revenue fluctuates from event to event, irs requirements, public demonstrations
irs requirements, public demonstrations, first principle: The first principle of the IRS for 501(c)(3) organizations is that compensation to workers may not be more that what is reasonable in the circumstances. Starting on pdf page 10 of http://www.irs.gov/pub/irs-tege/eotopici93.pdf the IRS discusses many of the...

Nonprofit Law: Designated Funds, child sponsorship, future trip
child sponsorship, future trip, 501 c 3 organizations: Generally, donors give up any authority over donated items and funds, unless they had a specific signed agreement with the nonprofit with a reverter clause or at least a letter indicating the conditional nature of the gift. This an issue called enforceability...

Nonprofit Law: Distributions to a member controlled 501(c)(3), low income housing, church money
low income housing, church money, excess income: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. 1. Generally, any 501(c)(3) organization may distribute or grant funds to another 501(c)(3) organization (like...

Nonprofit Law: donated auction items, attorney client relationship, form 990 ez
attorney client relationship, form 990 ez, harvey mechanic: You can see at line 6b that you need to put in there a number after the $ sign, which is the fmv of the value of the donated items that sold at auction, b Gross income from fundraising events (not including $ from fundraising events reported on ...

Nonprofit Law: facility rental, unrelated business taxable income, attorney client relationship
unrelated business taxable income, attorney client relationship, harvey mechanic: On page 9 of http://www.irs.gov/pub/irs-pdf/p598.pdf we see Rents from real property... are excluded in computing unrelated business taxable income. However, on pages 14-19 as to Unrelated debt-financed property, we see that, if there is debt-financing...

Nonprofit Law: Independent Contractor For Homeschool Co-op, irs publication 557, educational enrichment activities
irs publication 557, educational enrichment activities, foreign language teachers: The first issue is whether the organization will be considered by the IRS as primarily educational. If it is then the normal income items would not be taxable. I am not going to be going over every item of a budget. I have in my profile that this free forum...

Nonprofit Law: Issues with church appinting directors of a separate 501c3 school, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs regulations: I don t see any problem as to IRS regulations, as long as the church is not controlled by one family. 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...

Nonprofit Law: Mandatory Fundraising, irs publication 526, youth sports association
irs publication 526, youth sports association, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. A youth sporting organization may...

Nonprofit Law: Mandatory Fundraising Commitments, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Ok. Each player paid a set fee to start the activity. It appears that you are conceding that there was no agreement that the particular set fee would be all that the players would need to pay for the season. Therefore, there is no federal law violation by...

Nonprofit Law: Nonprofit boosters club, irs regulations, team gymnastics
irs regulations, team gymnastics, boosters club: 1. My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/RO1ez and you may be interested to read that. There you will see that a 501(c)(3) organization may not require families to join. Fees may be paid directly to the...

Nonprofit Law: Sale of equipment to a non-US based company, www irs gov, private shareholder
www irs gov, private shareholder, internal revenue code section: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations that are not private foundations. Therefore, I am assuming you are referring to a U.S. public charity (not a private...

Nonprofit Law: Splitting a 501c3, city animal shelter, animal rescue group
city animal shelter, animal rescue group, attorney client relationship: I am not sure what you mean by currently using the same 501c3, but, if you mean that both bank accounts are under the same EIN (Employer Identification Number, also known as the taxpayer identification number), which is the EIN of the 501(c)(3) organization,...

Nonprofit Law: starting bank account for my club under my name, irs gov, attendance fee
irs gov, attendance fee, cruise savings: You do not need to get 501(c)(7) organization status. Just form an unincorporated association for the social events. From the IRS online EIN application page https://sa2.www4.irs.gov/modiein/individual/index.jsp and hitting begin application and then...

Nonprofit Law: student accounts, cookie dough fundraiser, irs gov
cookie dough fundraiser, irs gov, irs rulings: Your organization is still considered a booster organization by the IRS even though it is not controlled by the school and is independent. The IRS rulings as to private student accounts apply also to students who attend public schools. I see nothing to...

Nonprofit Law: trustee gift to executive director, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Personal gifts are allowed, but, of course, then they are not deductible. The gift would be taxable to the employees if the gift was given by the employer, however, The Internal Revenue Code at section 102(a) provides that generally gifts are not income....

Nonprofit Law: 501(c)(3 ), attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: No. My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/9b573 and you may be interested to read that. Specially note, that, in June of 2011, the IRS wrote: ---Start of Excerpt-- If a booster club confers a benefit...

Nonprofit Law: 501c & choir trip funds, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs rule: It appears that, as the primary purpose of the trip is charitable, educational or religious, then any required expense would be valid, even if not funded by the individual members. The IRS rule for what nonprofits may spend money on is similar to the standard...

Nonprofit Law: 501c3, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, harvey mechanic: It appears that you have not reviewed your Articles of Incorporation and Bylaws. Before I could answer the question whether the pastor could become the sole controller (sole Director) of the church corporation, I would need to review those documents. I would...

Nonprofit Law: 501c3 fraud?, www irs gov, private inurement
www irs gov, private inurement, payroll expense: There definitely appear to be discrepancies. I don t know if there is fraud but it could be. Complaints could go to your State s Attorney General s Office as that office generally oversees charities within the state. If the action is criminal then your...

Nonprofit Law: 501c3 - Multiple Checking Accounts, profit community organization, exact citation
profit community organization, exact citation, nullum crimen sine lege: 501(c)(3) organizations may have separate checking accounts. It is not that there is any law stating that such multiple checking accounts may be maintained. Here in the United States, unless something is specifically prohibited by law, then it is allowed....

Nonprofit Law: 501c4 - spending requirements, www irs gov, harvey mechanic
www irs gov, harvey mechanic, community raffle: For general information about 501(c)(4) organization see www.irs.gov/irm/part7/irm_07-025-004.html and, specifically as to Police and Firemen’s Relief Associations see www.irs.gov/irm/part7/irm_07-025-004.html#d0e503 Police and firemens’ organizations...

Nonprofit Law: 990-N Asset test, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: No. Revenue Procedure 2011-15 on page 5 provides that: --- Start of Excerpt --- An organization exempt from federal income tax under § 501(a) because it is described in § 501(c) (other than a private foundation or a § 509(a)(3) supporting organization)...

Nonprofit Law: 990-N conflict with I.R.S. vs. 990, pension protection act, life membership fund
pension protection act, life membership fund, irs gov: Revenue Procedure 2011-15 on page 5 provides that: --- Start of Excerpt --- An organization exempt from federal income tax under § 501(a) because it is described in § 501(c) (other than a private foundation or a § 509(a)(3) supporting organization)...

Nonprofit Law: building on leased land, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. Your proposal would be prohibited private...

Nonprofit Law: Business expenses for board member, irs publication 526, www irs gov
irs publication 526, www irs gov, charitable donations: If an individual or family or business donates to a 501(c)(3) organization, those donations are deductible, but not as business expenses but as charitable contributions. As to charitable deductions generally see IRS Publication 526 Charitable Donations ...

Nonprofit Law: How to disburse furniture, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, relevant clauses: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. Internal Revenue Code section 501(c)(3)...

Nonprofit Law: disbursment of fund, irs instructions, substantial contributor
irs instructions, substantial contributor, internal revenue service: 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: Distribution of dissolved 501(c)(3) booster club monies, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, tax exempt status: The organization may refund to parents fees that they paid that were not used, but not the other funds. You can see in your Articles of Incorporation the dissolution clause that the IRS requires for 501(c)(3) organizations, which is something like: --- Start...

Nonprofit Law: "dormant" 501 (c) (3), california franchise tax, franchise tax board
california franchise tax, franchise tax board, california franchise tax board: Links to Form 990/990-EZ/990-N are available at www.irs.gov/charities/article/0,,id=152728,00.html and at the bottom of that page is the link to Filing thresholds (which 990 series return to file). You would need to file form 990-N even if you are...

Nonprofit Law: Educational theatre program for high school, tim tebow, sign ups
tim tebow, sign ups, purpose clause: Well, it looks like Tim Tebow has influenced changes in rules and laws throughout the United States. The Virgina Nonstock Corporation Act has at § 13.1-825 --- Start of Excerpt --- Purposes. Every corporation incorporated under this Act has the...

Nonprofit Law: EIN glitch for our nonprofit, categorized us as a standard corporation!, attorney client relationship, irs 1023
attorney client relationship, irs 1023, harvey mechanic: You have an EIN and, even if you made some mistake in the online EIN application, if you are organized and operating like a 501(c)(3) organization should, you can file your 1023 application with that EIN. I am assuming that you are within the first 15 months...

Nonprofit Law: Financial Data Part IX, attorney client relationship, good faith estimate
attorney client relationship, good faith estimate, harvey mechanic: There would not be any penalties as long as the estimates are sincere now. See instructions to the Application for Exemption at: www.irs.gov/pub/irs-pdf/i1023.pdf on page 12 column 1: reasonable and good faith estimate of your future finances for your...

Nonprofit Law: fundraising, irs gov, field directive
irs gov, field directive, nonprofit clubs: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issue is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Fundraising and W-9, form 1099 misc, www irs gov
form 1099 misc, www irs gov, irs instructions: The W-9 form with instructions is at: www.irs.gov/pub/irs-pdf/fw9.pdf and, on the right column of page 1 you see that, for certain purposes, the taxpayer (merchant) may request a payee s information including Social Security number. I suggest that the...

Nonprofit Law: high school music boosters/fundraising/student accounts, high school music, irs requirements
high school music, irs requirements, irs regulations: My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/9b573 and you may be interested to read that as it explains the issues you inquired about. Specifically, note that your operation would be what the IRS calls a cooperative....

Nonprofit Law: HSA sponsered 5th Grade Boston Trip, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, south glens falls: I don t know what you mean by HAS but I am assuming that you are referring to a 501(c)(3) organization. I would need to read the contract (or agreement or offer)( by the school in which they originally offered the families the fundraising opportunity. They...

Nonprofit Law: Individual accounts, irs gov, mr mechanic
irs gov, mr mechanic, summer internship program: Yes, your impression was correct and the restriction does apply to faith-based organizations when students are doing charitable work. In June of 2011 that IRS wrote: ---Start of Excerpt-- If a booster club confers a benefit on a participant in return...

Nonprofit Law: Love Offerings for a Pastor, irs publication 526, irs publication 517
irs publication 526, irs publication 517, www irs gov: A church can not engage in solicitations for a pastor and expect that the donations are tax deductible to the donor. See IRS Publication 526 Charitable Donations which is available at www.irs.gov/pub/irs-pdf/p526.pdf on page 6 where the IRS lists as not...

Nonprofit Law: membership, public benefit corporation, mutual benefit corporation
public benefit corporation, mutual benefit corporation, california public benefit: See page 13 of 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 class...

Nonprofit Law: Mi. voting, nonprofit corporation act, attorney client relationship
nonprofit corporation act, attorney client relationship, michigan nonprofit corporation: It appears from what you wrote that there were sufficient material improprieties to void that election and, if the Executive Committee does not agree, then some of the members can file an action in state court requesting the judge to order a proper election....

Nonprofit Law: Non-Profit Corporation Law, public benefit corporations, california public benefit
public benefit corporations, california public benefit, public benefit corporation: It appears that the corporation is a California Public Benefit Corporation. http://goo.gl/Zm9Z6 starting at section 5002 is the California Nonprofit Corporation s law and specifically starting at 5110 is the law for Nonprofit Public Benefit Corporations....

Nonprofit Law: Non profit sports club started to support charities - members' costs tax deductible?, irs publication 557, www irs gov
irs publication 557, www irs gov, private shareholder: Your purposes are mixed. They are both recreational and charitable. The IRS could grant exemption as a 501(c)(7) recreational or social organization about which the IRS writes at www.irs.gov/irm/part7/irm_07-025-007.html Please note that donations to such...

Nonprofit Law: Nonprofit 1099 forms, nonprofit corporation act, attorney client relationship
nonprofit corporation act, attorney client relationship, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issue is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Nonprofit Booster Club, band booster club, attorney client relationship
band booster club, attorney client relationship, harvey mechanic: Unless you have a contract with the school that requires you to release such information to them, or something in your Articles of Incorporation or Bylaws that require such, you do not have to release such information. Of course, if the school is not satisfied...

Nonprofit Law: nonprofit dues, attorney client relationship, irs website
attorney client relationship, irs website, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The IRS does not have any limitation as to the amount that a 501(c)(3) organization may charge in dues. Harvey...

Nonprofit Law: We are opperating as a non-profit without our 501c3, irs web page, attorney client relationship
irs web page, attorney client relationship, irs gov: To be considered exempt by the IRS even before you obtain the IRS exemption determination letter your organization would need to have the required clauses in the organizational document. See, starting in the middle column of page 26 of Publication 557 under...

Nonprofit Law: personal gains from non-profit club assets, www irs gov, private inurement
www irs gov, private inurement, club assets: Don t worry about how you classify the club owned assets. What you need to evaluate is not the value of the assets, per se, but the value of the rental (or use) of those assets for the period of time that the members are using those assets for their own private...

Nonprofit Law: Public perception and donor's intent, irs publication 526, www irs gov
irs publication 526, www irs gov, mr mechanic: What you are doing now would appear to be to the IRS to be conspiracy to commit tax fraud. For, as to charitable deductions, see IRS Publication 526 Charitable Donations which is available at www.irs.gov/pub/irs-pdf/p526.pdf especially on page 9 the IRS...

Nonprofit Law: Question on Directors Right Of Communication, attorney client privilege, professional accountants
attorney client privilege, professional accountants, volunteer member: The New York Not-for-Profit Corporation Law is available at http://goo.gl/lPmci and there is nothing there (or in any federal law) prohibiting anyone, who is a member of the Board of Directors from communicating with the tax consultant. You may want to...

Nonprofit Law: are rentals to members taxable income, income tax matters, unrelated business taxable income
income tax matters, unrelated business taxable income, personal income tax: on page 9 of www.irs.gov/pub/irs-pdf/p598.pdf where we see Rents from real property... are excluded in computing unrelated business taxable income. However, see pages 14-19 on Unrelated debt-financed property. There you will see that, if there has been...

Nonprofit Law: new questions 501c3 name change, team gymnasts, bingo sessions
team gymnasts, bingo sessions, grocery card: I am assuming the nonprofit organization is a corporation. It will first need to amend its articles of incorporation with the Secretary of State, Corporations Division of the State and they do charge a fee. You would then amend your bylaws. Then an officer...

Nonprofit Law: school public funds v. booster club funds, head football coach, football activities
head football coach, football activities, fundraising money: Somebody recently asked me about the Utah Education Law and I explained that the particular law has nothing to do with funds of a private 501(c)(3) organization (even a booster organization). Certainly booster organizations may obtain permission from a school...

Nonprofit Law: Tax Write Off for the Use of Land, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: See IRS Publication 526 Charitable Donations which is available at www.irs.gov/pub/irs-pdf/p526.pdf especially on page 9 the IRS writes about partial interests under the heading Partial Interest in Property which means that donations of use are not...

Nonprofit Law: Taxed on Donated Property Appreciation?, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your question is related to a donor s individual income tax. Even though this forum is not for such personal tax...

Nonprofit Law: Third-party fundraising events, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, party goers: Charities use volunteers to help with fundraising events but what you have here is a joint venture. From what you wrote, though, neither the book club nor the the volunteers will be receiving anything in return for their work or during the events and nothing...

Nonprofit Law: Youth Football 501(c) 3, youth football league, irs code
youth football league, irs code, unfortunate truth: General rules as to how participants are to be removed should be in the agreement (contract) for services that the organization would have with the participants, which would also detail the fees and the refund policy. Unless the reason for the removal is...

Nonprofit Law: not sure if we are 501(c)(3), www irs gov, publication 557
www irs gov, publication 557, gross receipts: If the income were all donations of the type that would have allowed a full deduction if your organization had actually been acknowledged as a 501(c)(3) organization by the IRS, then you would not be expected to have filed income tax returns as you had no...

Nonprofit Law: 501(c)(3) medical clinic using funds to cover pastor co-payments, cost medical care, charity care
cost medical care, charity care, patient payments: You are not required to put in writing the charitable classes that you are giving benefits to now, as you have already done that, most likely, in your exemption application. Exempt organizations determination letters state that if its mode of operation...

Nonprofit Law: 501(c)(3) perks for donation/volunteer, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, public zoos: A zoo has been established to serve hundreds of thousands of people. The IRS does not equate booster organizations, that serve a few dozen, at most, with such public zoos which provide benefits to the whole community. A 501(c)(3) organization can not require...

Nonprofit Law: 501 (c) 3 v/s 501 (c) 7, marine biology department, www irs gov
marine biology department, www irs gov, fish club: I don t know if you read that IRS article about the gemological organization, but please do, as the issue is that education (for purposes of 501(c)(3) organization status) needs to be to the public, not to members of a hobby. Harvey Mechanic, Attorney...

Nonprofit Law: 501 (c) (6) organization, nonprofit corporation law, title 15a
nonprofit corporation law, title 15a, mr mechanic: Certain states provide for members that do not have meetings. But, if the members have voting rights, they would generally have meetings. I suggest that, in the amended Certificate of Incorporation you would comply with the specific wording of the state law...

Nonprofit Law: 501c3 board member expense allowance, form 1099 misc, attorney client relationship
form 1099 misc, attorney client relationship, harvey mechanic: See on pdf page 112 of the 160 page pdf file IRS Internal Training: Employee/Independent Contractor at www.irs.gov/pub/irs-utl/emporind.pdf ---Start of Excerpt-- A director of a corporation, acting in the capacity of a director, is not an employee of...

Nonprofit Law: 501c3 Booster leaving a for profit gym, oregon secretary of state, internal revenue service
oregon secretary of state, internal revenue service, articles of incorporation: 1. You may change the name of the organization. If you are incorporated in Oregon, you would need to file an amendment to your Articles of Incorporation showing the name change. Filing instructions from the Oregon Secretary of State Office which is available...

Nonprofit Law: 501c3 and LLC Parent Cooperative, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: If the private gym has substantial control of the LLC it would be an important factor and you would want to let me know and then I could give you further details, but, from what you wrote, the IRS may want to use its Substance over Form which it uses often....

Nonprofit Law: Can a 501c3 organization charge dues?, irs publication 526, www irs gov
irs publication 526, www irs gov, search for missing people: A 501(c)(3) organization may charge members dues, but then you should update your 1023 exemption application to reflect the change in the source of your income. It does not matter whether you call them dues or donations, but, if the members do not receive...

Nonprofit Law: 509(a)(3) conversion, private foundation status, responsiveness test
private foundation status, responsiveness test, www irs gov: I don t know what you mean, in that context, by the word artificial , but I will be assuming that the qualification for any classification sought exists. A Type III supporting organization must be operated in connection with one or more publicly supported...

Nonprofit Law: allowable 501c3 expenses, olympic gymnasts, www irs gov
olympic gymnasts, www irs gov, irs rule: Sounds good. My only concern is the content of the display advertising or text advertising and whether the gym is getting too much benefit from those. See the 1994 IRS internal memorandum Corporate Sponsorship Income www.irs.gov/pub/irs-tege/eotopico94.pdf...

Nonprofit Law: Amending Non Profit Bylaws, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, non profit bylaws: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. However, I will direct you to http://goo.gl/pbPdk which is the Florida Not For Profit Corporation Act and specifically...

Nonprofit Law: arms length transaction, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, investopedia: Investopedia has a good definition of arm s length transaction at http://goo.gl/NuwRa and that term is not, in itself a law. Some laws, both those relating to nonprofits and also for other types of entities, however, contain the requirement that a particular...

Nonprofit Law: Articles of Incorporation / Name reservation, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: It appears that you have an unincorporated association and you now want to file Articles of Incorporation with the State. Your issues are controlled by state law and states may differ somewhat with how they would treat such issues. Even though this forum is...

Nonprofit Law: benefit for individual, www irs gov, home makeovers
www irs gov, home makeovers, tax deductible donation: A 501(c)(3) organization is not allowed, under federal law to inform donors that your organization has decided to fund a particular family, and also donors would not be able to deduct donations when they know, ahead of the time of their donation, that the...

Nonprofit Law: board member expense ceiling, form 1099 misc, attorney client relationship
form 1099 misc, attorney client relationship, www irs gov: See www.irs.gov/pub/irs-utl/emporind.pdf on pdf page 50 A director, as such, is not an employee. Therefore they would be treated like independent contractors (1099s, not W-2). See the second link at www.irs.gov/form1099misc which is the IRS instructions...

Nonprofit Law: Booster Club payment of fees for competitions attended, booster club members, team gymnasts
booster club members, team gymnasts, gymnastics team: Even if a member of the team decides not to participate in the booster club, the booster club entity can still invoice them the cost for their gymnast to participate in the sport, in order to combine the funds into the single registration payment for the...

Nonprofit Law: Boosters and School Admin Relationship, exact citation, nullum crimen sine lege
exact citation, nullum crimen sine lege, irs requirements: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. There is no federal law that requires you to release your records to the School Administration. I have not found...

Nonprofit Law: Bylaws, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, corporate resolutions: Amended bylaws are only active from the date of approval unless there is a particular clause that would specifically be noted as a ratification and only certain issues could be addressed in that way. http://legal-dictionary.thefreedictionary.com/ratification...

Nonprofit Law: Church Law NY, irs publication 557, www irs gov
irs publication 557, www irs gov, tax exempt status: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. A church certainly may be an unincorporated association. Note, however, that your activities may bring you into what...

Nonprofit Law: compensation, attorney client relationship, irs limit
attorney client relationship, irs limit, harvey mechanic: The IRS does not allow 501(c)(3) organizations to give someone more compensation than is reasonable. The IRS looks at many factors if it wants to allege that someone is getting excess benefits. The first factor is how many hours weekly the person is...

Nonprofit Law: Control of 501c3 by Relatives, public charity status, www irs gov
public charity status, www irs gov, shareholder agreement: I highly recommend that you have three directors who are unrelated by blood, marriage, residential address, or for-profit business relationships. The IRS wants at least 3 unrelated directors for public charities and, in any case, the board should not...

Nonprofit Law: DBA, animal welfare organization, register business name
animal welfare organization, register business name, mr mechanic: The IRS allows 501(c)(3) organizations to use dbas and even allow searching. --- Start of Excerpt --- Searching by name produces results where either the organization’s legal name or dba includes any of the search terms. For example, a search for Exempt...

Nonprofit Law: Disbursement of fundraising, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs regulations: I do not see any problem there, as the funds are going for meet fees. They are then being used to support youth athletic endeavors. Individual accounts are fine if only used for certain purposes, such as holding funds parents gave as fees or for holding...

Nonprofit Law: discrimination or anti-trust violation nonprofit, ftc act, discrimination laws
ftc act, discrimination laws, antitrust statutes: It is discrimination but discrimination laws only protect against certain discrimination, such as those based upon religion, national origin, race and a few other categories. Some states, such as Florida have laws that are more extensive in reach than...

Nonprofit Law: Dissolution of 501c3; regarding assets, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs code: The IRS code does not use the word similar , therefore, you would need to look to your Articles of Incorporation. If they require the disposition to a similar 501(c)(3) organization, then the word similar , as being vague, would leave an opening for different...

Nonprofit Law: Employer tax on distributed donations, irs publication 526, www irs gov
irs publication 526, www irs gov, private shareholder: I don t know how many employees your 501(c)(3) organization has, but your club may jeopardize their exempt status by using the employee fund that you have set up. Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv...

Nonprofit Law: Family as directors, public charity status, www irs gov
public charity status, www irs gov, fifth circuit court of appeals: The IRS wants at least 3 unrelated directors for public charities and, in any case, the board should not be controlled by related persons. See: www.irs.gov/pub/irs-wd/1002041.pdf which is denial of exemption based, in large part, upon the fact that there...

Nonprofit Law: Fiscal Agent/Sponsor, irs determination letter, attorney client relationship
irs determination letter, attorney client relationship, google search: A for-profit can apply to a 501(c)(3) organization for a grant for a particular project. That is permitted as long as the 501(c)(3) organization receives proper accounting as to the use of the funds. However, fiscal sponsorship is a vague term and...

Nonprofit Law: Gymnastics 501c3 booster, team gymnastics, volunteer requirements
team gymnastics, volunteer requirements, federal income taxes: How does the private gym owner/coach know that the family has not joined the booster organzation? If the 501(c)(3) booster organization shares such information with the private gym owner it will look to the IRS, if the owner fires a gymnast from the team,...

Nonprofit Law: Individual Fund Raising Accounts, unrelated business income, www irs gov
unrelated business income, www irs gov, irs publication: The 501(c)(3) organization s sale of candy to its members is allowed as fundraising. However, the sale by members to the general public is not considered by the IRS as anything directly related to 501(c)(3) organization activity. The IRS treats such sales...

Nonprofit Law: integrated auxiliary of a church, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: Yes. Even though an organization, in the past has filed Form 990, if it is an integrated auxiliary of a church, it is not required to continue such filings. --- Start of Excerpt --- Every organization exempt from federal income tax under Internal Revenue...

Nonprofit Law: International Money Transfer, international money transfer, attorney client relationship
international money transfer, attorney client relationship, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. Internal Revenue Code section 501(c)(3)...

Nonprofit Law: by-laws, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I am assuming yours is a Texas nonprofit corporation and you are referring to a seat on the Board of Directors. The Texas Code sections for Nonprofit Corporations as of 2009 are available at: www.statutes.legis.state.tx.us/Docs/BO/htm/BO.22.htm Specifically,...

Nonprofit Law: Merge, liberal arts education, irs approval
liberal arts education, irs approval, internal revenue service: I would need to review the 1023 exemption application that your friend filed with the IRS and then review the operation after your merger to decide whether there is going to be a substantial and material change in mode of operation. Exempt organizations...

Nonprofit Law: multiple purposes, attorney client relationship, good faith estimate
attorney client relationship, good faith estimate, harvey mechanic: In drafting the 1023 to apply for 501c3, you would need to include all of the current programs and those planned to become operational within the first three years. The instructions to the exemption application which is available at www.irs.gov/pub/irs-pdf/i1023.pdf...

Nonprofit Law: Non discrimination policy, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: The non-discrimination policy is only required by the IRS for 501(c)(3) organizations that are schools. For example see http://goo.gl/AOFMF which is a Google site search of the IRS site with the search terms non-discrimination policy and you will see...

Nonprofit Law: non-profit status, charitable beneficiaries, irs gov
charitable beneficiaries, irs gov, private shareholder: Section 502 of the Internal Revenue Code reads, in relevant part, An organization operated for the primary purpose of carrying on a trade or business for profit shall not be exempt from taxation under section 501 on the ground that all of its profits...

Nonprofit Law: Non-profit umbrella explanation, irs publication 557, www irs gov
irs publication 557, www irs gov, google search: The term is not umbrella . Some nonprofits are in what the IRS calls a group exemption . Group Exemption is discussed starting on the bottom of the first column on page 7 of IRS Publication 557 at www.irs.gov/pub/irs-pdf/p557.pdf and that would not apply...

Nonprofit Law: Parent organization with 501 (c) (3) status distribution limitations, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, www irs gov: Everything depends upon what you mean by member clubs. You use the word parent which may mean that you are referring to what the IRS calls group exemption . Group Exemption is discussed starting on the bottom of the first column on page 7 of IRS Publication...

Nonprofit Law: Payroll and Board of Directors, state tax id, payroll program
state tax id, payroll program, public charity: You are welcome, Molly. See www.irs.gov/charities/article/0,,id=131083,00.html explains: --- Start of Excerpt --- An exempt organization (EO) may have officers such as a president, vice-president, secretary, treasurer, executive director, and CEO (chief...

Nonprofit Law: For-profit setting up a non-profit organization, irs publication 557, www irs gov
irs publication 557, www irs gov, nonprofit corporation law: If you want donors to be able to deduct donations you would need to establish a charitable trust, incorporate under a state s nonprofit corporation law, or set up an unincorporated nonprofit association. Your organizing document would need to state that it...

Nonprofit Law: Quit Claim Deed, attorney client relationship, property tax exemption
attorney client relationship, property tax exemption, harvey mechanic: You may quit claim the deed to the church as long as the church s board approves the resolution to accept the property. The equity of the property should, therefore, be something substantial. As for property taxes, either you or the church can pay those...

Nonprofit Law: religious charities, public disclosure requirements, attorney client relationship
public disclosure requirements, attorney client relationship, harvey mechanic: 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 www.irs.gov/charities/article/0,,id=96430,00.html...

Nonprofit Law: restrictions on who can be a board member of a 501c3, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Unless either organization s Articles of Incorporation or Bylaws prohibit it, there would be no problem, unless there is a conflict of interest and, in that case, there still may not be a prohibition except for votes that are for issues that are potential...

Nonprofit Law: Scholarship, nonprofit corporation law, www irs gov
nonprofit corporation law, www irs gov, internal revenue code section: If you want to be able to deduct donations you would need to establish a charitable trust, incorporate under a state s nonprofit corporation law, or set up an unincorporated nonprofit association. Your organizing document would need to state that it is organizing...

Nonprofit Law: Selling Donations a Fraud?, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Misrepresentation or fraud in the solicitation of funds is not legal in any state. You can file a complaint with the local police department or prosecutor s office. Also those who donated can request refunds. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com...

Nonprofit Law: single-member 501c3, public charity status, www irs gov
public charity status, www irs gov, public charities: A quick summary of the differences between public charities and private foundations can be found at: www.guidestar.org/news/features/foundations.jsp www.npccny.org/Form_990/Exp_Private_Foundations.htm is also a good article. The IRS wants at least...

Nonprofit Law: Thrift store workers' salaries & other expenses Fundraising Expenses, www irs gov, irs instructions
www irs gov, irs instructions, noncash contributions: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. I also mentioned there that I will not be helping with accounting issues and completing of returns. I wrote to...

Nonprofit Law: Transfer of real estate from 501c3 to individual, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, private shareholder: The IRS does not allow 501(c)(3) organizations to give someone more compensation than is reasonable but does allow compensation for work. It appears that what you are being provided would not be excessive, but that would depend upon how many hours you...

Nonprofit Law: Volunteer Incentives, pre paid visa card, www irs gov
pre paid visa card, www irs gov, volunteer officers: As the IRS writes at: www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf on page 74 (it generally takes a while to load as it is a 91 page pdf file): --start of excerpt --- The use of the term volunteer generally has no significance in applying the tax...

Nonprofit Law: 1099, unrelated business income, attorney client relationship
unrelated business income, attorney client relationship, www irs gov: Most public charities are corporations. If the 501(c)(3) organization you refer to is a corporation then you would not be giving a 1099-misc. See the right column of page 1 of www.irs.gov/pub/irs-pdf/i1099msc.pdf which is the IRS instructions for form...

Nonprofit Law: 501(3)(c),LLC, or charitable trusts., irs gov, private shareholders
irs gov, private shareholders, charitable trusts: I suggest that you consult with someone like me who is highly knowledgeable as to the set-up of 501(c)(3) organizations. I do not have any links for governement grants, sorry. This forum is only for questions relating to exemption issues of 501(c)(3) organizations....

Nonprofit Law: 501-3c, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, www irs gov: You had in your subject heading 501-3c, but, the code section is 501c3. Anyway, there are only three ways that a separate entity can operate under an existing 501(c)(3) organization. 1. What the IRS calls group exemption . Group Exemption is discussed...

Nonprofit Law: 501-C3, nonprofit corporation act, attorney client relationship
nonprofit corporation act, attorney client relationship, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. However, I will direct you to http://law.justia.com/idaho/codes/30ftoc/30003ktoc.html which is the Idaho Nonprofit...

Nonprofit Law: 501 c3 books, tax exempt number, 501 c3
tax exempt number, 501 c3, finance books: It appears that there may have existed what the IRS calls conspiracy to avoid federal taxes as the gym was originally responsible for withholding employment taxes and reporting such to the IRS for its coaches (or, if they were independent contractors to report...

Nonprofit Law: One 501c3 paying another 501c3, attorney client relationship, youth sports groups
attorney client relationship, youth sports groups, harvey mechanic: You might have an issues with the other programs that you have for your paid membership . Are those educational programs? If not, then there is a private benefit problem. An extensive discussion by the IRS of the private benefit issue relating to 501(c)(3)...

Nonprofit Law: 501c4 or 501c7 ATV Club, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, 501c7: Generally when a group has mixed purposes, with some substantial recreational purposes to benefit its members, I recommend two different organizations, in your case one c4 and one c7. I would be willing to work on your set up, but I would need to spend a...

Nonprofit Law: 501c4 clubs and affiliated 501c3, optimist international foundation, private letter ruling
optimist international foundation, private letter ruling, optimist clubs: See on page 3 of an IRS Private Letter ruling from 2006: --- Start of Excerpt --- Another question that arises in the context of charitable contributions is whether the contribution is really to the charity, or to another person. If a contribution...

Nonprofit Law: Amending By-Laws, delaware corporation law, attorney client relationship
delaware corporation law, attorney client relationship, harvey mechanic: Your organization may amend all or only part of the bylaws and the procedure for amendment and any requirement for a super-majority vote may be found in the bylaws (if they are standard bylaws). Your issue is controlled by state law and states may differ...

Nonprofit Law: Band Boosters-Chaperones for Spring Trip, www irs gov, harvey mechanic
www irs gov, harvey mechanic, irs rule: 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: www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: Benevolence Assistance, child support arrears, www irs gov
child support arrears, www irs gov, brenda bryant: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv has, in part, that the 501(c)(3) organization must be operated exclusively for religious, charitable, scientific, testing for public safety, literary,...

Nonprofit Law: benevolence given to pastor, www irs gov, volunteer worker
www irs gov, volunteer worker, fringe benefit: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. I would be willing to work on your matter further, but I would need to spend a substantial amount of time to determine...

Nonprofit Law: Bible Study website: public charity or private foundation?, private foundation grants, sunday school materials
private foundation grants, sunday school materials, irs gov: See Tax Guide for Churches and Religious Organizations www.irs.gov/pub/irs-pdf/p1828.pdf on page 27 --start of excerpt --- Certain characteristics are generally attributed to churches. These attributes of a church have been developed by the IRS and...

Nonprofit Law: Booster Club Division of Funds Raised, private benefit, booster organization
private benefit, booster organization, cooperative 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) booster organization is to be a charitable, not a cooperative, organization. In denying exemption to a purported 501(c)(3)...

Nonprofit Law: Booster club for sorority - tax exempt?, www irs gov, tax exempt status
www irs gov, tax exempt status, federal income taxes: Chapters of sororities can not attain to 501(c)(3) organization status generally. Therefore, an organization that supports the general fund of a sorority can not qualify for 501(c)(3) organization status. See pdf page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf...

Nonprofit Law: Booster fees. Are they tax deductible?, www irs gov, booster organizations
www irs gov, booster organizations, booster organization: You are absolutely correct. Like tuition payments by parents to private schools, that are required, fees for children are not tax deductible by the parents. See www.irs.gov/pub/irs-tege/eotopice96.pdf Conduit Organizations - Charitable Deductibility...

Nonprofit Law: Boy Scout fund raising, boy scout troop, scout fund
boy scout troop, scout fund, capability requirements: You wrote, we have no particular restriction on the type and manner of fund-raising which is done solely with volunteer workers and solely for the troop general fund. Before I answer that, please let me know what you mean by volunteer . Do those volunteers...

Nonprofit Law: Conversion of a for profit to an exsisting non-profit, irs approval, internal revenue service
irs approval, internal revenue service, organizational document: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. As for the IRS, after your merger, you would need to notify the IRS if that merger results in substantial changes to...

Nonprofit Law: Designation of Use for Gifts to Churches, ohio court decisions, profit church
ohio court decisions, profit church, 501 c 3 organizations: Generally, donors give up any authority over donated items and funds, unless they had a specific signed agreement with the nonprofit with a reverter clause or at least a letter indicating the conditional nature of the gift. This an issue called enforceability...

Nonprofit Law: Discrimination, federal tax questions, attorney client relationship
federal tax questions, attorney client relationship, harvey mechanic: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. The IRS does not have any regulation relating to your issue. Your question is an issue of what may be called discrimination and the Civil...

Nonprofit Law: Donor Funds on deposit, high school seniors, graduating high school seniors
high school seniors, graduating high school seniors, college performance: Unless you have a contract that requires that you deal with that donor in the future, you do not need to deal with him, nor accept donations from him. Also unless you are bound by some contract that your organization breached, the funds that he donated...

Nonprofit Law: faith based non-profit, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: For all tax matters where there are payments to individuals we suggest that the payor (here in the 501(c)(3) organization) obtain the SS# of the payee, and that can be obtained by a form W-9. In some cases, reports need to be filed with the IRS that call...

Nonprofit Law: FARMERS MARKET NON-PROFIT, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, nonprofit corporation law: The Missouri Nonprofit Corporation Law (2009 revision) is available at: http://law.justia.com/codes/missouri/2009/t23/c355/c355.html and I can add that I do not know of any states that require more than a simple majority except in some exceptional cases....

Nonprofit Law: Fire Dept. Early Payoff of Financed Vehicle, volunteer fire dept, attorney client relationship
volunteer fire dept, attorney client relationship, irs publications: There is no IRS regulation even close to you are referring to. It is not the burden of the citizen in the United States to show a case that shows that it is legal to do an act. It would be the burden of the person stating that it is NOT legal to...

Nonprofit Law: Form 1023, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, harvey mechanic: This nonprofit is not a governmental entity and therefore, it would not be treated by the IRS as an instrumentality of government. See the IRS Publication 557 Tax Exempt Status for Your Organization at: www.irs.gov/pub/irs-pdf/p557.pdf in the right...

Nonprofit Law: Fund Raising Incentive Program, pride club, gymnastics team
pride club, gymnastics team, malibu ca: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) booster organization. You are correct that their proposal...

Nonprofit Law: giving money to pay child support arrears, child support arrears, www irs gov
child support arrears, www irs gov, united methodist church: See 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: Individual Accounts, www irs gov, group fundraisers
www irs gov, group fundraisers, field directive: I don t under what you mean by sports gym operating under a 501c3 other than that the sports gyms is part of a 501(c)(3) organization. The first Group is generally permitted unless it is excessive. See Fund Raising at: www.irs.gov/pub/irs-tege/eotopicl82.pdf...

Nonprofit Law: Inurement, excess benefit transactions, www irs gov
excess benefit transactions, www irs gov, private benefit: It appears that the church board has approved that the program of training the church future leaders is related directly to the exempt purposes of the church (or the board could ratify that activity). If the participants understand that they are not required...

Nonprofit Law: Inurement, nonprofit community hospital, www irs gov
nonprofit community hospital, www irs gov, bonus incentives: The IRS does not allow 501(c)(3) organizations to give someone more compensation than what is reasonable. The IRS looks at many factors if it wants to allege that someone is getting excess benefits. The first factor is how many hours weekly the person...

Nonprofit Law: irs form 5227, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: See the instructions for Form 1041 which is available at www.irs.gov/pub/irs-pdf/i1041.pdf on page 25: --- Start of Excerpt --- TPooled income funds and charitable lead trusts also file Form 5227. See Form 5227 for information about any exceptions. ---End...

Nonprofit Law: In-Kind Donations Included in Gross Receipts, good faith estimate, www irs gov
good faith estimate, www irs gov, gross receipts: In the IRS Specific Instructions for Form 990-EZ we see for line 1, Report the value of noncash contributions at the time of the donation. For example, report the gross value of a donated car as of the time the car was received as a donation. www.irs.gov/instructions/i990ez/ch02.html#d0e1625...

Nonprofit Law: leftover fundraising $ in personal account, irs gov, irs regulations
irs gov, irs regulations, field directive: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) booster organization. My summary of IRS regulations...

Nonprofit Law: Men's Ice Hockey Club, private men, club business
private men, club business, hockey club: No, I don t see any reason to pay the filing fee to the IRS to apply for exemption determination as you do not have any income and do not give salaries or wages. Many such clubs have established EINS only for what the IRS calls banking purposes . Other...

Nonprofit Law: Non-Profit Change, irs approval, irs website
irs approval, irs website, internal revenue service: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. If you have substantial changes in your mode of operation, you would want to notify the IRS. Exempt organizations...

Nonprofit Law: Non Profit loan to employee, attorney client relationship, market interest rates
attorney client relationship, market interest rates, www irs gov: See www.irs.gov/pub/irs-tege/eotopicc90.pdf and on pdf page 5 we see, Other case examples of inurement include... inadequately secured loans, Lowry Hospital Association v. Commissioner, 66 T.C. 850 (1976). If the loan is inadequately secured and that...

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

Nonprofit Law: Non-profit preschool, california public benefit, public benefit corporation
california public benefit, public benefit corporation, attorney client relationship: Your wrote that the pre-school is non-profit . I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization...

Nonprofit Law: non profit purpose, membership, and fundraising, internal revenue service, profit purpose
internal revenue service, profit purpose, organizational document: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. Such organizations may engage in other...

Nonprofit Law: Non-profit Referral Program, www irs gov, harvey mechanic
www irs gov, harvey mechanic, form 1099 misc: 1. Yes, referral fees are legal. 2. It is not a donation. The IRS has written on page 2 (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...

Nonprofit Law: Non-profit special funds accounting, irs regulations, outreach ministries
irs regulations, outreach ministries, cash donations: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. As to IRS regulations, because the member is representing to the public that all funds given go to the church account,...

Nonprofit Law: Non-profit Tax Exempt Status, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, harvey mechanic: They are certainly beyond the gross income threshold and are not a type of organization, like a church, that is not required to file Form 1023 to be considered exempt. Therefore, especially if they do like most similar organizations and engage in sales activities...

Nonprofit Law: non-profit transfer, massachusetts division of corporations, attorney client relationship
massachusetts division of corporations, attorney client relationship, harvey mechanic: You are welcome. You don t need to reapply for exempt status with the IRS. You would simply deal with the new state s requirements. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended to be a general statement...

Nonprofit Law: Nonprofit Unincorporated Association in California, irs publication 557, www irs gov
irs publication 557, www irs gov, unincorporated association: Earlier you provided me with a conclusion that yours is an organzation with revenue of less than $6,000 annually . Now you explain some other set of facts. The regulations provide a formula for what constitutes gross receipts normally not in excess of...

Nonprofit Law: Ohio Sales Tax Id # vs EIN #, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: No. EIN (Employer Identification Number, also known as the taxpayer identification number) are federal. State issue their own, separate sales tax numbers. I have in my profile that this free forum is only for general questions relating to IRS federal exemption...

Nonprofit Law: Personal Mission-trip Donations, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: You are welcome. Generally, donations to 501(c)(3) organizations are deductible. However, if an organization develops a practice of always using funds for the donor, then those donations would not be deductible. See www.irs.gov/pub/irs-tege/eotopice96.pdf...

Nonprofit Law: Pet Adoption, animal rescue group, foster pets
animal rescue group, foster pets, petfinders: Complaints could go to your State s Attorney General s Office as that office generally oversees charities within the state. If the action is criminal then your local district attorney may be interested in prosecuting as at: http://viewer.zoho.com/docs/tzcmai...

Nonprofit Law: For-profit Daycare in Non-Profit church, www irs gov, outreach ministry
www irs gov, outreach ministry, daycare: The church will jeopardize its 501(c)(3) organization status with the IRS if it gives substantial private benefit to a for-profit business. --start of excerpt --- The critical inquiry is not whether particular contractual payments to a related for-profit...

Nonprofit Law: Public Charity Equal Access, aau basketball, young basketball player
aau basketball, young basketball player, private secondary schools: See http://pages.citebite.com/i5e6s9l9ninh From the U.S. Supreme Court Case, Bob Jones University v. United States, 461 U.S. 574 (1983) which decided the 501(c)(3) organization status may not be granted to racially discriminatory schools. A few paragraphs...

Nonprofit Law: Recreational (non-profit) Softball League, technical advice memorandum, irs national office
technical advice memorandum, irs national office, presbyterian and reformed publishing: You are welcome. I don t see any inurement problems if the prize money only results in people getting refunds for fees or sponsorship payments, but otherwise, for example, if the team divided the funds to the individuals, there may be issues. As for how...

Nonprofit Law: Registration Fee...Tax deductible ??, irs publication 526, www irs gov
irs publication 526, www irs gov, harvey mechanic: A registration fee is not deductible as a charitable donation to the 501(c)(3) organization as it is required for certain benefits. As to charitable deductions, see IRS Publication 526 Charitable Donations which is available at: www.irs.gov/pub/irs-pdf/p526.pdf...

Nonprofit Law: Required forms, irs publication 557, www irs gov
irs publication 557, www irs gov, nonprofit corporation law: 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: Scholarship, harvey mechanic, www irs gov
harvey mechanic, www irs gov, irs instructions: 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: Selling products on behalf of organization and sharing sales income, unrelated business activities, unrelated business income
unrelated business activities, unrelated business income, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations and not for questions relating to unrelated business activities (not activities that are, in themselves educational...

Nonprofit Law: startiing a branch, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs approval: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The IRS has no prohibition. However, is your mode of operation changes you would want to notify the IRS. Exempt organizations...

Nonprofit Law: Starting a NPO from abroad II, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Some of your issues are generally controlled by state law and states may differ somewhat with how they would treat...

Nonprofit Law: Starting a NPO from abroad, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, nonprofit corporation law: You are welcome. Sometimes I establish a nonprofit organization in a few days. The IRS minimum filing fee for such a determination letter is $400 and goes up to $850. www.irs.gov/charities/article/0,,id=232771,00.html The IRS may take months to...

Nonprofit Law: Tax and volunteers, employment tax law, www irs gov
employment tax law, www irs gov, fringe benefit: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. You question relates to what the IRS calls generally employment taxes . Even though this forum is not for such employment...

Nonprofit Law: Unrelated Business Income Tax for Church, unrelated business income, unrelated business income tax
unrelated business income, unrelated business income tax, business income tax: 1. I think I know why your mentioned 15% but I not not understand why you limited it to 15% of the total use of the new facility, instead of say, 15% of the total use of the all of your facilities. IRS Publication 598 Tax on Unrelated Business Income...

Nonprofit Law: 501 3c Help, slush fund, irs regulations
slush fund, irs regulations, booster organizations: My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/9b573 and you may be interested to read that. 1. Fine 2. The Board may decide to distribute the funds differently, for example if team members have more routines....

Nonprofit Law: another 501 (c)(3) distrbition of funds question, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs guidelines: IRS regulations does not prohibit a 501(c)(3) booster organization from making grants to youth gymnasts immediately after a fund-raising event in proportion to their fees that are due. My summary of IRS regulations relating to 501c3 booster organizations...

Nonprofit Law: 501 c 3 gift to individual member, international singing competition, www irs gov
international singing competition, www irs gov, irs publications: 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: www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: 501(c)(3) Privileged Information, public benefit corporations, attorney client relationship
public benefit corporations, attorney client relationship, harvey mechanic: As you wrote that the organization is a 501(c)(3) organization it would have been incorporated in California under the California Nonprofit Corporation s law which is available at http://goo.gl/Zm9Z6 starting at section 5002 and specifically starting at...

Nonprofit Law: 501 (c) (3) questions, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, booster club activities: 1. You still need to distribute to the 40 kids. It appears that you have read my summary of IRS regulations relating to 501c3 booster organizations which is at http://goo.gl/9b573 and also the particular fuller article available at https://viewer.zoho.com/embed.jsp?f=aDebbe...

Nonprofit Law: 501C 3 volunteer issues, excess benefit transactions, www irs gov
excess benefit transactions, www irs gov, volunteer firefighters: We do not use the word volunteer in tax law, especially when the worker expects some compensation. here is no expectation of payment by a volunteer. www.dir.ca.gov/dlse/opinions/1988-10-27.pdf on page 2 which is an opinion from the Chief Counsel...

Nonprofit Law: 501c tax question, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: If the loan was inadequately secured and that is given to an insider then the IRS treats the proceeds as compensation to the insider which may result in a total of excessive compensation to that person which is a violation of IRS regulations. www.irs.gov/irm/part7/irm_07-025-003-cont02.html#d0e4749...

Nonprofit Law: 501c3 charities, irs publication 557, deductible charitable contributions
irs publication 557, deductible charitable contributions, irs website: I am assuming the organization does not operate, as its main activity a house of worship. Some entities eligible to receive tax deductible charitable contributions may not be listed in Publication 78. The IRS may take months to issue the exemption...

Nonprofit Law: 8th Grade Fundraising, irs gov, harvey mechanic
irs gov, harvey mechanic, field directive: 1. No, that is not legal. In June of 2011 that IRS wrote: ---Start of Excerpt-- If a booster club confers a benefit on a participant in return for their fundraising activities, such as by crediting amounts raised by a participant toward that participant...

Nonprofit Law: 990EZ, attorney client relationship, form 990 ez
attorney client relationship, form 990 ez, www irs gov: I don t understand why you are completing Form 990-ez if you have had no annual revenue. Why not just file Form 990-N? Links to Form 990/990-EZ/990-N are available at www.irs.gov/charities/article/0,,id=152728,00.html and at the bottom of that page is...

Nonprofit Law: Adding church to 501c3 Non-Profit Charity, public benefit corporation, community outreach ministry
public benefit corporation, community outreach ministry, attorney client relationship: If the church was not incorporated then it would be easier to have the church come under the existing 501(c)(3) organization s status. But now, as they are separate entities, they must each have their own EIN (Employer Identification Number, also known as...

Nonprofit Law: Amending Minutes Already Accepted by Board, harvey mechanic, roberts rules of order
harvey mechanic, roberts rules of order, robert s rules of order: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issue is not about exemption but about procedures, controlled by state law and states may differ somewhat with...

Nonprofit Law: audit, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, charities bureau: I am a New York attorney, but I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. I will advise you that audits are not required except for certain large organizations...

Nonprofit Law: Band Booster/Accounts, cancellation request, band instructor
cancellation request, band instructor, band booster: I suggest that everything be in writing, like universities with tuition, so that it is clear what is what, including refund policies. I have in my profile that this free forum is only for relevant IRS federal exemption issues of 501(c)(3) organizations....

Nonprofit Law: Benevolence fund-transfer from general fund into it, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: Unless prohibited by its internal rules, like in the Articles of Incorporation or Bylaws a church may transfer funds from an unrestricted-general fund into a benevolence fund. You did not ask, but you may be interested to see www.irs.gov/pub/irs-pdf/p3833.pdf...

Nonprofit Law: booster club, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: I suggest you complain to the IRS. if the booster organization is a 501(c)(3) organization. See www.irs.gov/pub/irs-tege/eotopica93.pdf starting on pages 11 Private Facility Owners which discusses prohibited private benefit and excessive control of the...

Nonprofit Law: Booster Club Bylaws, booster club bylaws, attorney client relationship
booster club bylaws, attorney client relationship, harvey mechanic: Bylaws may only be amended in pursuance to the procedures mentioned in the Articles of Incorporation Therefore, we would need to look at the Articles of Incorporation of August 2010 and then see if the new bylaws were properly adopted. Generally, though,...

Nonprofit Law: Cheer Boosters- allocation of funds question, charity casino, concession stand
charity casino, concession stand, individual fund: As to splits , in June of 2011 that IRS wrote: ---Start of Excerpt-- If a booster club confers a benefit on a participant in return for their fundraising activities, such as by crediting amounts raised by a participant toward that participant s dues requirement,...

Nonprofit Law: Deducability Issue, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: It appears that the organization you are asking about is not a 501(c)(3) organization, but that it runs (manages under a contract) a charity, which is a 501(c)(3) organization. Please confirm or otherwise explain the relationship between the organization...

Nonprofit Law: Designated funds contribution benefitting a single individual, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: No. As to charitable deductions, see IRS Publication 526 Charitable Donations which is available at: www.irs.gov/pub/irs-pdf/p526.pdf on page 6 where the IRS lists as not deductible Contributions to individuals who are needy or worthy. This includes...

Nonprofit Law: Disposition of Unused Solicited Funds, guidestar, 501 c 3 organizations
guidestar, 501 c 3 organizations, charitable gift: You are welcome. Off the top of my head I know of no California case that reverses the common law that I referred to above. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended to be a general statement of law,...

Nonprofit Law: Follow up: Deductability question, www irs gov, profit entities
www irs gov, profit entities, organization status: The for-profit has a logo and, it licenses the use of its logo to other for-profit entities. It may certainly donate funds to the charity, and the charity s status would not be effected unless, by the new income source, that charity loses what the IRS calls...

Nonprofit Law: a fundraising nonprofit, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: Yes. The IRS writes about Section 509(a)(3) Supporting Organizations at www.irs.gov/charities/article/0,,id=137609,00.html The IRS gives a detailed instruction to its own officers at: www.irs.gov/irm/part7/irm_07-020-007.html Particularly note that...

Nonprofit Law: fundraising & separate bank accounts, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, charitable solicitations: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issues are controlled by state law and states may differ somewhat with how they would treat such issues. Even...

Nonprofit Law: gymnastics booster club, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: You are asking about the leftover funds, but what about the other funds -- the funds that were used that year only to benefit persons who were members of the 501(c)(3) booster organization or who did work? That is the main issue and that is what causes the...

Nonprofit Law: Gymnastics Booster Organization, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/9b573 and you may be interested to read that. After reading that you will see that the the answer to your question is yes , but your club would not qualify as...

Nonprofit Law: incorporate? LLC?, nonprofit corporation law, irs gov
nonprofit corporation law, irs gov, private shareholders: The IRS grants 501(c)(3) organization exemption status to LLCs that are properly organized and operated. However, it only would grant exemption to an LLC whose members are all themselves exempt organizations. Because state laws generally provide...

Nonprofit Law: Insurance claim on stolen items, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, baby cribs: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issue is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: L-1 visa denied because of lack of office space, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Something sounds strange from your explanation, as it appears that the petitioner provided evidence that the U.S. entity had already rented sufficient office space. I would be willing to work on your matter further , but I would need to spend a substantial...

Nonprofit Law: Are member dues Tax Deductable, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: As to charitable deductions, see IRS Publication 526 Charitable Donations which is available at: www.irs.gov/pub/irs-pdf/p526.pdf and specifically see, on the first column of page 4: --- Start of Excerpt --- Membership fees or dues. You may be able...

Nonprofit Law: membership dues, parent booster organization, attorney client relationship
parent booster organization, attorney client relationship, harvey mechanic: If the band contracts with your 501(c)(3) organization to have you collect band fees and turn them over to the band then such activity by your 501(c)(3) organization is allowed and you would not be jeopardizing your 501(c)(3) organization status even if your...

Nonprofit Law: Non profit 501c3 giving a gift of collected funds, public school parents, private shareholder
public school parents, private shareholder, 501 c3: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv has, in part, that the 501(c)(3) organization must be operated exclusively for religious, charitable, scientific, testing for public safety, literary,...

Nonprofit Law: Non-Profit 501c7 Proxy, mutual benefit corporations, mutual benefit corporation
mutual benefit corporations, mutual benefit corporation, attorney client relationship: It does not need to be given to a member of the Board. Just look into the wording in the Code. Now, if the Board of Directors passes a resolution that proxies may only be given to members of the Board, that may be valid, as we see in that section that proxies...

Nonprofit Law: non profit baseball, irs publication 557, www irs gov
irs publication 557, www irs gov, nonprofit corporation law: I am assuming that the players are mostly youth. 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...

Nonprofit Law: non-profit detailed financial statements, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issue is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: non-profit fundraising, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: In June of 2011 that IRS wrote: ---Start of Excerpt-- If a booster club confers a benefit on a participant in return for their fundraising activities, such as by crediting amounts raised by a participant toward that participant s dues requirement, or by...

Nonprofit Law: Non-profit grants versus loans, www irs gov, irs regulation
www irs gov, irs regulation, internal memorandum: 1 &2 Secured loans by the 501(c)(3) organization to the for-profit or assistance by subsidizing cost of capital would be fine as long as the funds are going to be used exclusively for charitable purposes by the for-profit entity. See IRS s Internal Memorandum...

Nonprofit Law: Non-profit leasing to for-profit, unrelated business activities, unrelated business taxable income
unrelated business activities, unrelated business taxable income, federal tax exemption: You are welcome. Real property means real estate, not personal property like furnishings or movable equipment. I gave you the IRS explanation that income on the property could be treated as normal, taxable income, when you have a mortgage (debt-financing)...

Nonprofit Law: Non-profit/Loans, www irs gov, harvey mechanic
www irs gov, harvey mechanic, irs regulations: Even if someone is not an insider, the organization would not be able to give an unsecured loan unless it could also give a grant to the volunteer as then, if the loan is substantial, there would then be substantial private benefit. An extensive discussion...

Nonprofit Law: Non-profit owning property, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I am assuming, from what you wrote, that you would be using your personal funds to purchase the real estate and then put the title in the name of the nonprofit. Unless we draft an agreement between the nonprofit and you specifying under what circumstances...

Nonprofit Law: non profit property dispute, www irs gov, private shareholder
www irs gov, private shareholder, internal revenue code section: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. Internal Revenue Code section 501(c)(3)...

Nonprofit Law: non-profit renting/leasing to for-profit, unrelated business taxable income, attorney client relationship
unrelated business taxable income, attorney client relationship, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. As for the IRS, they allow rental income. On page 9 of www.irs.gov/pub/irs-pdf/p598.pdf we see Rents from real ...

Nonprofit Law: Non profit status revoked, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: The donor certainly may request that the funds be returned, but the organization is not obligated to return the funds, absent some contract with the donor. Generally, donors give up any authority over donated items and funds, unless they had a specific signed...

Nonprofit Law: nonprofit club separating, private shareholder, internal revenue code section
private shareholder, internal revenue code section, tax exempt status: In order to have been granted 501(c)(3) organization status you must have had certain required clauses in the organizational document See, starting in the middle column of page 26 of Publication 557 under Organizational Test . Samples start on page...

Nonprofit Law: nonprofit poker tournament, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. For the IRS rules see their publication: www.irs.gov/pub/irs-pdf/p3079.pdf Tax-Exempt Organizations and Gaming ...

Nonprofit Law: NP being run by just 1 person, nonprofit corporations, h records
nonprofit corporations, h records, records books: I am assuming that the organization has been incorporated uner the the Texas Code sections for Nonprofit Corporations which are available at www.statutes.legis.state.tx.us/Docs/BO/htm/BO.22.htm If my assumption is wrong, let me know. If it is a corporation,...

Nonprofit Law: Operating locations, renting office space, attorney client relationship
renting office space, attorney client relationship, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to 501(c)(3) organizations. There are no laws prohibiting many 501(c)(3)...

Nonprofit Law: Can my PTO pay for training parents?, www irs gov, irs rule
www irs gov, irs rule, busi ness: 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: www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: Qualifiying as Publicily Supported, unrelated business income, unrelated business activities
unrelated business income, unrelated business activities, federal tax exemption: There may be also an issue of what the code calls unrelated business. IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations at www.irs.gov/pub/irs-pdf/p598.pdf explains that, if products or services are not directly related to...

Nonprofit Law: Receipts for International Expenses, irs publication 535, www irs gov
irs publication 535, www irs gov, irs rule: 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: www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: Recreational time prior to STM trip, irs publication 526, www irs gov
irs publication 526, www irs gov, short term mission trip: There is no tax law that I have seen that requires participants in those types of trips to travel to/from the destination all together. The only issue for tax purposes is to what extent the trip is for religious purposes and what extent it is for recreational...

Nonprofit Law: Reimbursements, ethical objection, irs rule
ethical objection, irs rule, private benefit: 1. The word insubstantial is relevant for the issue of private benefit, but any amounts earned for benefits by work is considered taxable as compensation. The organization, however, would not jeopardize its exemption as there are no cases where I have seen...

Nonprofit Law: Renting to For Profits, unrelated business income, unrelated business taxable income
unrelated business income, unrelated business taxable income, attorney client relationship: See page 9 of IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations at where we see Rents from real property... are excluded in computing unrelated business taxable income. However, see pages 14-19 on Unrelated debt-financed...

Nonprofit Law: reprsenitive change, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The IRS does not request organizations to have representatives . Therefore, I don t know what entity is requiring...

Nonprofit Law: Selling product to 501c, unrelated business income, attorney client relationship
unrelated business income, attorney client relationship, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. That relates to income tax. There would be no income tax liability of the 501(c)(3) organization for sales of a product...

Nonprofit Law: Setting Family Fundraising Contributions, club membership fee, irs gov
club membership fee, irs gov, irs regulations: No. A 501(c)(3) organization booster organization does not need to automatically grant membership to participants of a competitive team that is run under another entity. However, the booster organization can not discriminate in making grants to the participants...

Nonprofit Law: Sponsorship, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, ed softball: By sponsorship I am assuming that you are referring to a grant of funds to the softball team. I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming...

Nonprofit Law: Starting a club or association, private shareholder, tax exempt organization
private shareholder, tax exempt organization, internal revenue code section: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv has, in part, that the 501(c)(3) organization must be operated exclusively for religious, charitable, scientific, testing for public safety, literary,...

Nonprofit Law: Taxes for baseball league, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, irs 1023: See the IRS Publication 557 Tax Exempt Status for Your Organization at: www.irs.gov/pub/irs-pdf/p557.pdf in the right column on page 25 under Organizations Not Required to File Form 1023 discusses who does not need to file and among those is Any organization...

Nonprofit Law: Unincorporated Association Laws, irs publication 557, harvey mechanic
irs publication 557, harvey mechanic, www irs gov: I don t know what the organization would be doing when it takes artists to art walks/events so that they can sell their work. Let me know if the nonprofit organization is running those art walks/events and, if not, what actually the organization would be...

Nonprofit Law: unrelated business income, irs publication 526, unrelated business income
irs publication 526, unrelated business income, attorney client relationship: I would need to see the written agreement (or a summary of the oral agreement). Does it require the bank to give that percentage if the band plays at the bank? If so, then that is not a donation. As to charitable deductions, see IRS Publication 526 Charitable...

Nonprofit Law: work exchange, work exchange program, taxable fringe benefits
work exchange program, taxable fringe benefits, www irs gov: Whether an entity is a nonprofit or for-profit, it is required under law to report the value of taxable fringe benefits to the IRS. See www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf (it generally takes a while to load as it is a 91 page pdf file): -...

Nonprofit Law: $100 gift to board member moving away., paul getty trust, queen of angels hospital
paul getty trust, queen of angels hospital, j paul getty trust: The better practice is to that some individuals take up a collection for the couple that is leaving and give them the gift directly. Although $100 is relatively not that much, but churches and other 501(c)(3) organizations should develop that procedure. ...

Nonprofit Law: 501(c)3 or 501(a)1, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, www irs gov: If you have a substantial recreational or social purpose for a group of persons, then it appears that you are referring to a 501(c)(7) recreational or social organization about which the IRS writes at www.irs.gov/irm/part7/irm_07-025-007.html Please note...

Nonprofit Law: 501 (c) (3), attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: http://goo.gl/pbPdk is the Florida Not For Profit Corporation Act and one section has: --- Start of Excerpt --- 617.0841 Duties of officers.—Each officer has the authority and shall perform the duties set forth in the bylaws or, to the extent consistent...

Nonprofit Law: 501(c)3 - Endowment Fund, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: No, as a I quoted from a IRS publication: See pdf page 13 of 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...

Nonprofit Law: 501c Status, first amendment rights, attorney client relationship
first amendment rights, attorney client relationship, harvey mechanic: The Mississippi law for Nonprofit, Nonshare Corporations and Religious Societies (revised as of 2010) is available at http://goo.gl/CsgLH Specifically see: --- Start of Excerpt --- § 79-11-171. Admission of person as member of corporation. (1) ...

Nonprofit Law: 501c3 and discrimination laws, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: An organization may legally discriminate for some reasons but may not legally discriminate for other reasons. There are federal laws that apply to certain businesses (whether for-profit or nonprofit), but I do not know of any that would apply unless the...

Nonprofit Law: Who 501c3 can give to, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: A 501(c)(3) organization may not give unrestricted grants to entities that are not themselves 501(c)(3) organizations. See The IRS publication at www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and international activities of...

Nonprofit Law: Can a 501c3 list members/donors?, irs gov, internal memorandum
irs gov, internal memorandum, 501c3 status: Before we go into the issue of postings we need to be clear as to something that you may have read, as you used the word in quotes, advertising . See the 1994 IRS internal memorandum Corporate Sponsorship Income www.irs.gov/pub/irs-tege/eotopico94.pdf...

Nonprofit Law: 501c3 yuoth sports organization merging with S Corp, youth sports organization, harvey mechanic
youth sports organization, harvey mechanic, merger acquisition: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. There is no problem as to the IRS. Your issues are controlled by state law and states may differ somewhat with how...

Nonprofit Law: Booster Club Competition Fees, spring awards banquet, team gymnasts
spring awards banquet, team gymnasts, tax exempt status: Generally parents will need to pay for any fees for their children when the booster organization does not cover all fees. As you know, when the parents pay such fees those are not deductible by the parents as a charitable donation. The IRS treats booster...

Nonprofit Law: Business Structure for EIN, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, employer identification number: You may apply for a Federal EIN (Employer Identification Number, also known as the taxpayer identification number) online through http://tinyurl.com/yrczt Monday through Friday 7:00 a.m. to 10:00 p.m. Eastern time. If the You would choose nonprofit...

Nonprofit Law: Charitable donations by 501(c)(7)s, irs publication 557, www irs gov
irs publication 557, www irs gov, harvey mechanic: There are no regulation in the tax law relating to a 501(c)(7) organization giving funds to a 501(c)(3) organization. The IRS summary for 501(c)(7) recreational or social organizations is available at at www.irs.gov/irm/part7/irm_07-025-007.html Specifically,...

Nonprofit Law: church Designated donations, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Generally, donors give up any authority over donated items and funds, unless they had a specific signed agreement with the nonprofit with a reverter clause or at least a letter indicating the conditional nature of the gift. This an issue called enforceability...

Nonprofit Law: Church rental property, unrelated business taxable income, attorney client relationship
unrelated business taxable income, attorney client relationship, harvey mechanic: on page 9 of www.irs.gov/pub/irs-pdf/p598.pdf we see Rents from real property... are excluded in computing unrelated business taxable income. However, on pages 14-19 as to Unrelated debt-financed property, we see that, if there has been recently debt-financing...

Nonprofit Law: Conflict of Interest Policy, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. But I will give you some information. The instructions to the Form 1024, which is the application for exemption...

Nonprofit Law: Conversion from IRS 501-C-4 to IRS 501-C3, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, harvey mechanic: I am assuming yours is a nonprofit corporation. First your board (and voting members, if you have those) would resolve that the organization should amend its Articles of Incorporation and Bylaws to convert the corporation to a 501(c)(3) organization. Then...

Nonprofit Law: Donating to a church group, irs publication 557, irs publication 526
irs publication 557, irs publication 526, www irs gov: Churches are generally treated by the IRS as 501(c)(3) organizations that are public charities. See the IRS Publication 557 Tax Exempt Status for Your Organization at: www.irs.gov/pub/irs-pdf/p557.pdf in the right column on page 25 under Organizations...

Nonprofit Law: Did we elect a President?, mutual benefit corporation, public benefit corporation
mutual benefit corporation, public benefit corporation, harvey mechanic: There is a President if the Chairperson announced the result of the election, but, as the election was not done properly, it can be overturned either by later action by the organization (a correction) or it can be overturned by a judge of superior court if...

Nonprofit Law: Do we file for 501c3 if finances are through school bank accounts, irs publication 557, nonprofit corporation law
irs publication 557, nonprofit corporation law, www irs gov: If your Band Booster Association does not have a contract with the school board, then the school board can not control the Association. However, if the booster association does not follow the orders of the school board,t hen the school board does not need...

Nonprofit Law: a fundraising nonprofit, harvey mechanic, irs requirement
harvey mechanic, irs requirement, better business bureau: The IRS would only accept written evidence and would not accept any explanation from you of a verbal agreement. The IRS has not published a particular percentage that it would allow for administrative fees but the higher the amount the more likely that the...

Nonprofit Law: Gifting a nonprofit, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, private shareholder: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. Such organizations may only sell their...

Nonprofit Law: gymnastic booster club membership obligations, membership obligations, governmental authorities
membership obligations, governmental authorities, gym owner: That operation has all of the attributes of a cooperative and its 501(c)(3) organization status would be revoked by the IRS. By all means inform them of their violations and it also appears that they are conspiring with the gym owner to evade taxes (I am...

Nonprofit Law: Inurement, www irs gov, public attendance
www irs gov, public attendance, 501c3 nonprofit organization: The IRS allows annual events for fundraising and, especially for organizations that have their main activity the annual event, it has special rules. For example, see Fund Raising at: www.irs.gov/pub/irs-tege/eotopicl82.pdf On page 1 --- Start of...

Nonprofit Law: Member penalty, bingo fundraiser, booster organization
bingo fundraiser, booster organization, cooperative organization: A 501(c)(3) organization may not have benefits based upon work for the 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) booster organization is to be a...

Nonprofit Law: Members in a 501(c)3 religious non-profit, anthony mancuso, nonprofit corporations
anthony mancuso, nonprofit corporations, corporate decisions: A member in the context of what the state is referring to means someone (other than on the board of directors) who has the right to vote for the Board of a nonprofit corporation. The Texas Code sections for Nonprofit Corporations are available at: http://goo.gl/YYOWh...

Nonprofit Law: Membership fees, summer swim team, attorney client relationship
summer swim team, attorney client relationship, harvey mechanic: Ok. I see there is some rational basis for the difference in the charges. I just don t understand why $25, when you wrote that there is a $10 difference what you pay the pool organization. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com ...

Nonprofit Law: Merging non-profits (youth soccer clubs), irs publication 557, youth soccer clubs
irs publication 557, youth soccer clubs, attorney client relationship: You are welcome. Generally, for small operations the group exemption is too expensive ($3000). Group Exemption is discussed starting on the bottom of the first column on page 7 of IRS Publication 557 at www.irs.gov/pub/irs-pdf/p557.pdf The IRS exemption...

Nonprofit Law: Motorcycle Club, www irs gov, gross receipts
www irs gov, gross receipts, motorcycle clubs: It appears that you are referring to a 501(c)(7) recreational or social organization about which the IRS writes at www.irs.gov/irm/part7/irm_07-025-007.html Please note that donations to such organizations are not deductible by the donors. Also such an organization...

Nonprofit Law: non-designated funds, www irs gov, harvey mechanic
www irs gov, harvey mechanic, personal indebtedness: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. Internal Revenue Code section 501(c)(3)...

Nonprofit Law: Non-Profit Donations, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, www irs gov: First we need to understand whether you will allow the vendors to set up if they do not give the $25. If you do not, then the $25 is not a donation. As to charitable deductions, see IRS Publication 526 Charitable Donations which is available at: www.irs.gov/pub/irs-pdf/p526.pdf...

Nonprofit Law: Non-Profit Organization, harvey mechanic, federal tax id
harvey mechanic, federal tax id, least five years: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Yours is another type of organization. However, I will inform you that social groups that simply pool their funds...

Nonprofit Law: non-profit organizations, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, 501c6: States allow any individuals to incorporate a nonprofit corporation. A for-profit, can, therefore, start a nonprofit by appointing the incorporators and/or the initial members of the Board of Directors. Such a designation will not, in itself, cause the IRS...

Nonprofit Law: non-profit and students, www irs gov, leadership sessions
www irs gov, leadership sessions, tax paperwork: The IRS uses the words scholarship and fellowship to mean certain things. A scholarship is generally an amount paid or allowed to a student at an educational institution for the purpose of study. A fellowship is generally an amount paid to an individual...

Nonprofit Law: Non Profit Travel Baseball Team, state contract law, refund schedules
state contract law, refund schedules, george washington university: Unless you have a contract with the family that provides the specification as to when they would be getting a refund, the non profit is not required to give a refund as long as you had the authority to kick the player off of the team and you did not discriminate...

Nonprofit Law: nonprofit/church, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: See www.irs.gov/pub/irs-wd/1041048.pdf on pdf page 4 as to the regulations that the IRS has that preclude the granting of 501(c)(3) organization status if an organization has a substantial non-exempt purpose. The regulations that the IRS cite to so not...

Nonprofit Law: Pass-thru money & tax write eligibility, level gymnast, tax deductible donation
level gymnast, tax deductible donation, booster organization: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) booster organization. I don t want to get into what...

Nonprofit Law: percentage of a fundraiser for a 501 c3 org., attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The IRS does not have any regulations as to such percentages. The IRS does give preferential status to grants from...

Nonprofit Law: Can President veto vote, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Generally not, especially if the President is not a member of the Board and no such power is given in the Articles of Incorporation or Bylaws, and, even in that case, only if allowed by state law. I am willing to direct you to the state law, but first you...

Nonprofit Law: Property lease agreement, public charity status, www irs gov
public charity status, www irs gov, mark pruitt: Many 501(c)(3) organizations have compensated board members, so I don t know why you wrote that If we became compensated in the future...we would obviously replace ourselves on the board. That certainly might be beneficial in certain respects though. ...

Nonprofit Law: PTO expenses, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, science lab equipment: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your questions are very specific. I gave you the general law in the area. I would be willing to work on your matter,...

Nonprofit Law: PTO paying operating expense of for profit private school, www irs gov, private benefit
www irs gov, private benefit, room science: I don t know what you mean by associated with a for profit private school , but see www.irs.gov/pub/irs-tege/eotopica93.pdf starting on pages 11 Private Facility Owners which discusses prohibited private benefit and excessive control of the booster organization...

Nonprofit Law: Question about a not-for-profit fundraising for an individual, volunteer fire company, attorney client relationship
volunteer fire company, attorney client relationship, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. See pdf page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf...

Nonprofit Law: raffle ticket purchase, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, income tax purposes: You are welcome. I don t understand why you would conclude that, if one corporation in Wisconsin obtains a license for a raffle that another corporation, even if related, would not have to obtain a separate license. That is not my reading of that law,...

Nonprofit Law: records not keep n money could b missing, nonprofit corporations, countys
nonprofit corporations, countys, association committee: http://bit.ly/kEelH which takes you to page 35 of a book on the subject, Guidebook for Directors of Nonprofit Corporations Second Edition from the American Bar Association Committee on Nonprofit Corporations (ed. Jeannie Carmedelle Frey and George W....

Nonprofit Law: Refund of donations, irs publication 526, charitable deductions
irs publication 526, charitable deductions, 501 c 3 organizations: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. As for individual tax return issues, that would be beyond the scope of this forum, but I do suggest that one of the...

Nonprofit Law: Snack sales, irs publication 557, www irs gov
irs publication 557, www irs gov, nonprofit corporation law: 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: Swim Club and Team Recognized as a 501(c)(3)?, summer swim club, youth swim team
summer swim club, youth swim team, economic downturn: A club that has adults as members could not be combined with a youth swim team and have 501(c)(3) organization status as the primary activity of the adults is recreational. 501(c)(3) organizations are to be exclusively charitable, educational or religious....

Nonprofit Law: 3 groups under one 501c3 organization, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, harvey mechanic: Is there only one corporation? It appears that you have three corporations because you used the term parent corporation which only refers in entity law to a situation when there is a corporation (the parent) and another corporation or corporations that...

Nonprofit Law: 501(c)3 Dog Rescue Ohio, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, nonprofit corporation law: I am assuming that the dog rescue organization is a Ohio nonprofit corporation and you can see the Ohio Nonprofit Corporation law, revised as of 2010 at: http://tinyurl.com/42dtog5 Specifically, as to voluntary dissolution see the sections starting at...

Nonprofit Law: 501(c)(3) nonprofit, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hindu religion: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The IRS allows 501(c)(3) organizations to engage in any charitable, educational or religious activities in the manner...

Nonprofit Law: 501(c)(3) & W-9 forms, attorney client relationship, irs exemption letter
attorney client relationship, irs exemption letter, harvey mechanic: The W-9 form with instructions is at: www.irs.gov/pub/irs-pdf/fw9.pdf and, on the right column of page 1 you see that, for certain purposes, the taxpayer (theater) may require your organization s EIN (Employer Identification Number, also known as the taxpayer...

Nonprofit Law: 501c7, Inurement & Commercial Offerings, www irs gov, commercial offerings
www irs gov, commercial offerings, nonprofit club: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. However, I will direct you to www.irs.gov/irm/part7/irm_07-025-007.html about such c7 groups and specifically note...

Nonprofit Law: Account Balance Maximum, irs determination letter, technical advice memorandum
irs determination letter, technical advice memorandum, irs national office: 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. If you do it for many years, then...

Nonprofit Law: Board member creating a new nonprofit, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, www irs gov: A Board member or officer of an existing nonprofit organization may not set up another nonprofit organization that might compete with the existing nonprofit organization without obtaining a resolution of the existing Board (with that board member not voting)....

Nonprofit Law: Board member loan converted to Contribution, irs publication 526, harvey mechanic
irs publication 526, harvey mechanic, www irs gov: The board member may see IRS Publication 561 Determining the Value of Donated Property www.irs.gov/pub/irs-pdf/p561.pdf which discusses on page 2 that the deduction is in the amount of the fair market value. The rest of the publication addresses certain...

Nonprofit Law: Cash Withdrawals/ bylaws, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: Public Charities Record Keeping Requirements are discussed at www.irs.gov/pub/irs-pdf/p4221pc.pdf from pdf page 24 to pdf page 32 (it usually takes some time to download that 48 page pdf document from the IRS site). Cash withdrawals are fine as long...

Nonprofit Law: Church Fundraiser, federal tax questions, unrelated business income
federal tax questions, unrelated business income, church 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. As for the IRS, their Publication 526 Charitable Donations www.irs.gov/pub/irs-pdf/p526.pdf...

Nonprofit Law: Church pass-thru to non 501-c3 church, tax deductible donations, irs purposes
tax deductible donations, irs purposes, mr mechanic: See instructions to Application for Exemption www.irs.gov/pub/irs-pdf/i1023.pdf in the right column on the first page under From 1023 not necessary discusses who does not need to file and among those is are churches. Therefore, you are correct that,...

Nonprofit Law: disclosure of financial statements of my booster club, public disclosure requirements, high school basketball
public disclosure requirements, high school basketball, irs gov: Do the members have a right to vote for the members of the Board? If so, then certain reports and financial records are required to be disclosed upon request. Section 6333 of the Corporation Code has, The accounting books and records and minutes of proceedings...

Nonprofit Law: Fed regs regarding taking over a 501(c)3, irs publication 557, www irs gov
irs publication 557, www irs gov, group exemption: The term educational 501(c)(3) organization is somewhat a vague phrase but it generally would refer to an organization which has received a determination letter from the IRS that the organization is exempt under section 501(c)(3)and it has, as its primary...

Nonprofit Law: Fundraiser Fraud, charitable solicitation, state charity
charitable solicitation, state charity, company stated that: You would also need to consider your state s charitable solicitation regulations. www.after-prom.org/state_charity_contacts.html has links to the state offices that regulate charitable organizations and charitable solicitations. You could file a complaint...

Nonprofit Law: Fundraising, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, charitable solicitations: It appears that the parents made sales with a statement that the funds were going to be for the benefit of a 501(c)(3) organization. I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3)...

Nonprofit Law: gifting to a nonprofit from a nonprofit of unused solicited funds, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, solicitation request: First I should point out that the first nonprofit, not being a 501(c)(3) organization, may not solicit donations stating that charitable deductions are allowed for donations. Also the organization can not, under most state laws, solicit donations indicating...

Nonprofit Law: Gymnastics Equipment Purchase, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: A 501(c)(3) non-profit gymnastics booster club may only use its funds to purchase new equipment if the equipment is owned by the 501(c)(3) organization and then only used by the beneficiaries of the booster organization. Otherwise there would be too much...

Nonprofit Law: Maintaining control over a 501(c)3 religious corporation, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, certificate of incorporation: There are ways to arrange that an officer or leader of a religious corporation can maintain a life-time position. I would be willing to work on your matter, but I would need to spend a substantial amount of time in drafting documents (after reviewing the Certificate...

Nonprofit Law: Meals for business convention, irs publication 535, www irs gov
irs publication 535, www irs gov, irs rule: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. I would not know anything about Indiana law as to accounting rules, but generally the states do follow the federal...

Nonprofit Law: Misleading Donor, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The answer to your general question is that a 501(c)(3) organization may not legally alter financial documents to present...

Nonprofit Law: non-profit, deductible business expenses, tax deductible donations
deductible business expenses, tax deductible donations, harvey mechanic: I never heard any person from the IRS stating that nonprofits can only raise up to 35% of their funds from non-members nor have read any regulation that stated that. In fact, many 501(c)(3) organizations receive most of their gross receipts in the form of...

Nonprofit Law: Non Profit Funds used for?, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: In June of 2011 that IRS wrote: ---Start of Excerpt-- If a booster club confers a benefit on a participant in return for their fundraising activities, such as by crediting amounts raised by a participant toward that participant s dues requirement, or by...

Nonprofit Law: Non-profit Management of LLC, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: Actually the test is then harder for the 501(c)(3) organization to pass. Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv has, in part, that the 501(c)(3) organization must be operated exclusively...

Nonprofit Law: Non-Profit Operation in foreign country and Board of Directors, public benefit corporations, public benefit corporation
public benefit corporations, public benefit corporation, attorney client relationship: Sales means that you are exchanging something for money. If you are getting all of your income from donations (and not giving anything in return) then you do not need to worry about sales income. If you are filing form 1023 for IRS exemption determination,...

Nonprofit Law: Nonprofit Board of Directors, public charity status, nonprofit board of directors
public charity status, nonprofit board of directors, www irs gov: Related persons may be on the board but they should not control the board (have a majority vote) The IRS wants at least 3 unrelated directors for public charities and, in any case, the board should not be controlled by related persons. See: www.irs.gov/pub/irs-wd/1002041.pdf...

Nonprofit Law: How do Parents Pay for pass through fees, harvey mechanic, irs regulations
harvey mechanic, irs regulations, booster organizations: A 501(c)(3) organization can hire a studio and pay it directly. That is not the issue. However, if the studio owner has too much influence over the 501(c)(3) organization, that could be an issue, for the 501(c)(3) organization should be having coaches just...

Nonprofit Law: political activities, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, tax exempt organizations: See http://bit.ly/1cI2DC for regulations for all types of nonprofit organizations as to political activity Tax-Exempt Organizations: Political Activity Restrictions and Disclosure Requirements by the Congressional Research Service. Specifically note,...

Nonprofit Law: Reimbursement to Board Members, irs publication 535, www irs gov
irs publication 535, www irs gov, irs rule: 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: www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: Who is the responsible party for an LLC owned by a non-profit, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: The instructions to that Form SS-4 are available at: www.irs.gov/pub/irs-pdf/iss4.pdf Specifically see in the first column of page 4 under the heading Lines 7a–b. Name of responsible party and there you will see that it need to be an individual (not the...

Nonprofit Law: Staff Training, www irs gov, irs rule
www irs gov, irs rule, busi ness: 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: www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: teacher salaries paid by a 501(c)(3) booster club, irs publication 526, stipend positions
irs publication 526, stipend positions, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The IRS regulations allow a 501(c)(3) booster organization to support the school by subsidizing the payment of school...

Nonprofit Law: Transfer of Funds from 501(c)3, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: A 501(c)(3) organization may grant funds to an individual but then it must be in pursuance to a good exempt purpose. What is the purpose for the 501(c)(3) organization to give the individual funding? You wrote that you are in Haiti. Is the individual account...

Nonprofit Law: Can a 501(c)(3) co-own an LLC with non-exempt parties?, exempt law, public charity
exempt law, public charity, 501 c 3 organizations: A 501(c)(3) organization may, under many circumstances form an LLC with investors who will share in the profits. I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations and...

Nonprofit Law: 501 C3 meetings and such, youth sports organization, attorney client relationship
youth sports organization, attorney client relationship, harvey mechanic: http://tinyurl.com/2f5cmzt is the Nevada Nonprofit Corporation Code and, as other states, they would not require open meetings of private organizations. As for your state law on Open Records and Open Meetings, The Reporter s Committee for Freedom of...

Nonprofit Law: 501C nonprofit Mi., nonprofit corporation act, 501c nonprofit
nonprofit corporation act, 501c nonprofit, michigan nonprofit corporation: Anyone may request an audit in any way, but that does not mean that the 501(c)(3) organization is required to have an audit, unless it is so required in its Articles of Incorporation or Bylaws. There is no federal law that has such a requirement and I have...

Nonprofit Law: 501c3, public charity status, www irs gov
public charity status, www irs gov, public charities: It appears that you are referring to 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 www.irs.gov/charities/charitable/article/0,,id=154667,00.html...

Nonprofit Law: 501c3 disbursement of funds, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: www.irs.gov/pub/irs-tege/eotopice96.pdf is an IRS publication about prohibited conduit arrangements. Note that there would not be any allegation of a conduit payment unless there is a donor(s) requested the funds to go to the European charity or the donors...

Nonprofit Law: 501c3 limitations, www irs gov, 501c7
www irs gov, 501c7, study labs: A c7 does not have the ability to give donors the benefit of deductions for the donations, but a c3 does. Therefore, the IRS would not want a c7 to have an affiliated c3 that gives more benefits to the c7 members than it would to other members of the community....

Nonprofit Law: 501c3 T-shirt sales - how to report, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: If you are incorporated, you are probably incorporated as a Colorado Nonprofit Corporation. Therefore, you would not use the word profit . I suggest the word surplus. As to charitable deductions, see IRS Publication 526 Charitable Donations which...

Nonprofit Law: 501c3? Team Costs & Fees, www irs gov, publication 526
www irs gov, publication 526, singer co: Now that you give me these details, it appears that the 501(c)(3) organization may give a donation receipt (acknowledgement) to the parents as to the donation. Details of the acknowledgement are found on pdf page 11 at: www.irs.gov/pub/irs-pdf/p1771.pdf...

Nonprofit Law: 508c1a bank account, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, employer identification number: This appears to be a duplicate of a question I just answered, but I will give my answer anyway.... The organization and operation will matter if the IRS audits the church organization or questions a charitable deduction (by audit) on an individual s tax...

Nonprofit Law: 990 Filing, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs document: It appears that, for the last five years, your organization has been filing Form 990-N as you mentioned that gross income amount. Links to Form 990/990-EZ/990-N are available at www.irs.gov/charities/article/0,,id=152728,00.html and at the bottom of that...

Nonprofit Law: animal sancturary non-profit, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: You are welcome. I already wrote earlier that you can buy a tractor and donate that tractor to the 501(c)(3) organization and you can deduct that cost if the field is for the use of the exempt organization solely. See on page 5 of that IRS Publication...

Nonprofit Law: Board Member Compensation, federal tax questions, www irs gov
federal tax questions, www irs gov, public charities: 1. Generally, yes, under conditions. A conflict of interest is present whenever a director, and in some states an officer) has a material personal interest in a proposed contract or transaction to which the 501(c)(3) organization may be a party. Some...

Nonprofit Law: Changing a 501(c)(3) Focus, state corporations division, draft bylaws
state corporations division, draft bylaws, cheerleading team: I would need to read your bylaws to give you a definitive answer, but, generally, when I draft bylaws, I give the organization latitude to add an activity without needing to amend the bylaws. I don t know your organization s name, so I do not know whether...

Nonprofit Law: charging for memberships, 501c3 status, skeet trap
501c3 status, skeet trap, 501 c 3 organizations: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your organization has obtained exemption based upon the fact that it is supporting youth activities, which is one of...

Nonprofit Law: Deductability of gymnastic scholarships without 501(c)(3) status, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Even though your question is not about such an exempt organization, I will inform you that corporations that gift people...

Nonprofit Law: Disbanding Church Distributing Assets, nonprofit corporation law, michigan nonprofit corporation
nonprofit corporation law, michigan nonprofit corporation, www irs gov: You can search for the entity in the state s listing of corporations: www.dleg.state.mi.us/bcs_corp/sr_corp.asp Even if you organization has not yet officially decided to dissolve it appears to be what the law anticipates covering, in other words, the...

Nonprofit Law: donation by a non-profit, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: When a 501(c)(3) organization grants funds or property to another 501(c)(3) organization or to a state or municipal agency for public use the Internal Revenue Code does not give any tax benefit to that first 501(c)(3) organization. Harvey Mechanic, Attorney...

Nonprofit Law: Excess benefit transaction rules for a 501(c)(3), excess benefit transaction, excess benefit transactions
excess benefit transaction, excess benefit transactions, attorney client relationship: It could. Section 4958 of the Internal Revenue Code imposes an excise tax on excess benefit transactions between a disqualified person and an 501(c)(3) organization or 501(c)(4) organization. The disqualified person who benefits from an excess benefit transaction...

Nonprofit Law: Financial operating system for a not-for-profit organization., attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Yes, unless prohibited by its Articles of Incorporation or Bylaws a not-for-profit may make investments in stocks, mutual funds or bonds, but the investments should not be highly speculative. If you are referring to an Indian Nonprofit Corporation see...

Nonprofit Law: Food Pantry Space, www irs gov, plumbing problems
www irs gov, plumbing problems, food pantry: There is a traditional commercial lease called Triple net lease. http://goo.gl/NRlhe Even though you would not be having a triple net lease, one of the elements of such a lease net common area maintenance. is definitely negotiable as a term in any commercial...

Nonprofit Law: Fraudulantly taking in money, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, small claims court: If you have an agreement with the organization (membership agreement) you would have a cause of action in small claims court. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended to be a general statement of law,...

Nonprofit Law: giving from one non-profit to another, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I am sorry about your son, but I can help you with the money that the church is holding. But first I need to know if your organization has received a determination letter from the IRS that it is exempt under section 501(c)(3). After you give me that information...

Nonprofit Law: inactive non-profit, attorney client relationship, www irs gov
attorney client relationship, www irs gov, private foundation status: Where an organization recognized as exempt becomes temporarily inactive but retains its identity as a corporation or association, the exempt status need not be terminated. However, if the evidence clearly indicates that the organization will not resume...

Nonprofit Law: Missing Information for 501(c)3 Reinstatement, www irs gov, irs faq
www irs gov, irs faq, gross receipts: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. 1. See http://www.irs.gov/charities/article/0,,id=252363,00.html which is the IRS FAQ for Applying for Reinstatement...

Nonprofit Law: non profit, www irs gov, federal income taxes
www irs gov, federal income taxes, gov pub: Whether the benefits are going to one individual or to one family would not be considered different in the view of the IRS, so they would not grant exemption. See pdf page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf under the heading Charitable Class ...

Nonprofit Law: Non profit construction service for disaster relief, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, remodeling company: Sorry, yes, that volunteer exception does exist in section 502, which means that your proposed organization would not be eliminated from consideration as a 501(c)(3) organization by that section 502 if the management and workers received no compensation. ...

Nonprofit Law: Non-Profit DBA in California, public benefit corporations, mutual benefit corporations
public benefit corporations, mutual benefit corporations, nonprofit public benefit: I don t see anything there in those links as to for profit corporations . If you see something in those county sources that refer to for profit corporations , please let me know and I will reply further. http://goo.gl/Zm9Z6 is the California Corporations...

Nonprofit Law: Non Profit Dissolution, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, registered sex offender: The officers of the organization handle the winding up of the corporation including closing the bank account. That was detailed down that link I sent to you earlier but you can find it specifically at Continued existence; winding up and liquidation; effect...

Nonprofit Law: Non Profit Reimbursements, irs publication 535, www irs gov
irs publication 535, www irs gov, volunteer officers: Reimbursements are when employees or volunteers spends money while working for the nonprofit. As that person did not spend the money but loaned it to the nonprofit then it would not be treated like a reimbursement. As the check to that person was a payment,...

Nonprofit Law: Non Profit School Spirit Booster Club, irs publication 557, irs publication 78
irs publication 557, irs publication 78, deductible charitable contributions: 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: operations in foreign country, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, nonresident aliens: In your form 990 there are many questions as to operations outside of the United States and you would need to completely answer those questions. But, if you are referring to other reporting such as for employees who are employed working in the United States,...

Nonprofit Law: Outreach Offerings, attorney client relationship, outreach offerings
attorney client relationship, outreach offerings, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issue is controlled by state law and states may differ somewhat with how they would treat such issues. But the...

Nonprofit Law: Question about minster's license, irs publication 517, attorney client relationship
irs publication 517, attorney client relationship, harvey mechanic: It is between the issuing church and the minister what benefits they will be receiving. It is not a government tax matter except in narrow areas. See IRS Publication 517 Social Security and Other Information for the Members of the Clergy and Other Religious...

Nonprofit Law: real property exchange for loan, attorney client relationship, capital improvement projects
attorney client relationship, capital improvement projects, harvey mechanic: Everything would be in writing and an agreement between the officer and the organization is sufficient (later there may be a need to document the value of the residence is actually less than the value of the promissory note, as it is not now worth $200,000)....

Nonprofit Law: Restrictions on Lifetime Board Member, public benefit corporations, attorney client relationship
public benefit corporations, attorney client relationship, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. As you recognize, the laws in the area as to board members having lifetime status are controlled by the state law where...

Nonprofit Law: Shared EIN, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, sports booster club: It appears that the School district may have an idea to control the new booster organization, meaning that it will be a department of the school district, using the School Districts s EIN (Employer Identification Number, also known as the taxpayer identification...

Nonprofit Law: Sports Boosters, technical advice memorandum, irs national office
technical advice memorandum, irs national office, presbyterian and reformed publishing: There is no restriction for one or two years of accumulation of funds. If you do it for many years, then the IRS would want to see a purpose for the accumulation. A 501(c)(3) organization that is not a private foundation may accumulate funds for one...

Nonprofit Law: transfer of non profit it another, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: The control of the nonprofit is in the Board of Directors and the procedure for election of Board members and minimum number of Board members is indicated in the Articles of Incorporation and Bylaws. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com...

Nonprofit Law: Unincorporated Associations, irs publication 557, google search
irs publication 557, google search, www irs gov: The IRS uses the phrase fiscal sponsor only a few times as we can see by a Google search site:irs.gov fiscal sponsor fiscal sponsorship http://bit.ly/jhfrF and that one has Fiscal sponsorship is an area of current concern for the Service...

Nonprofit Law: Youth Sports Fundraising, grocery store cards, partial scholarships
grocery store cards, partial scholarships, hockey organization: Insubstantial could be anything above 5% of the gross budget. I will include, at the bottom of this a detailed explanation. It appears that you have used that word because you are concerned with jeopardizing the exempt status of the 501(c)(3) organization....

Nonprofit Law: youth travel/tournament sports team, spaghetti dinners, volunteer coach
spaghetti dinners, volunteer coach, player payments: It appears that the team is not an entity separate from the 501(c)(3) organization. Therefore, as when students pay tuition, the team members paid fees. Those are not considered pass through payments by the IRS. But, when players worked for benefits...

Nonprofit Law: 501 (3) (c) Non-Booster Club Indv. Student accts., parents organization, student accts
parents organization, student accts, booster organization: Sorry, I meant to use the word disproportionate to mean a disproportiately high amount, but I did not put in, as I should have a disproportiately high amount . The point is that, by working, a family does not get more benefit because of the work, and...

Nonprofit Law: 501 c 3 fundraising for Athletic booster club, athletic booster club, unrelated business income
athletic booster club, unrelated business income, www irs gov: The IRS has written on page 2 (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: 501 (c) (3) income, irs determination letter, technical advice memorandum
irs determination letter, technical advice memorandum, irs national office: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations which are not private foundations. I am assuming from what you wrote to me that the organization is not a private...

Nonprofit Law: A 501 (c)(3) Public Charity Giving Employee Gifts, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: The Internal Revenue Code at section 102(a) provides that generally 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...

Nonprofit Law: 501(c)(4), attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. However, I will direct you to http://www.irs.gov/irm/part7/irm_07-025-004.html which is the IRS information page...

Nonprofit Law: 501 c 7 Club Event Advertising, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. However I will direct you where the IRS writes about the 501(c)(7) recreational or social organizations at http://www.irs.gov/irm/part7/irm_07-025-007.html...

Nonprofit Law: 501(c) (7) funds use, irs gov, harvey mechanic
irs gov, harvey mechanic, gross receipts: Sorry I did not see the difference in your second question. I see now that you have that the use of the dock space will be by the members. If it is for the members private, recreational use, then I do not see any problem. But, you may not rely upon this...

Nonprofit Law: 501c3 dissolving, public charity status, www irs gov
public charity status, www irs gov, public charities: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations that are public charities. Therefore, I am assuming that you are referring to a public charity that is dissolving....

Nonprofit Law: 501c3 Fundraising, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: It is not any longer a process getting back 501(c)(3) organization status compared to getting it the first time. You can certainly set up a new, for-profit entity but then donations to it are not deductible and the sales profits and taxable just like for...

Nonprofit Law: 501C3 Homeschool Co-op Fundraising, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: You are correct that 1099-Misc are not require for total payments during one year is less than $600. www.irs.gov/pub/irs-pdf/i1099msc.pdf I don t know what receipts the 501(c)(3) organization would be issuing to a family for their tax records. Please...

Nonprofit Law: 990N, irs publication 557, irs web page
irs publication 557, irs web page, attorney client relationship: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations that are public charities. Therefore, I am assuming that you are referring to a nonprofit that has a pending application...

Nonprofit Law: Band Booster club paying for awards and trophies, band booster club, home football game
band booster club, home football game, attorney client relationship: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv has, in part, that the 501(c)(3) organization must be operated exclusively for religious, charitable, scientific, testing for public safety, literary,...

Nonprofit Law: Band Boosters/student account/trips, harvey mechanic, irs regulations
harvey mechanic, irs regulations, booster organizations: You wrote, We know we can do fundraiser but according to non profit laws we must divide the profit amongst every student, not just those who actually sold the candy, etc. That is correct and no disclaimer will change that. Refunds of fees given by...

Nonprofit Law: Charitable Donations account, nonprofit orgs, sole proprietorship
nonprofit orgs, sole proprietorship, anonymous donations: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Each bank has their own procedures, so you would need to check with your local banks as to what they require on the...

Nonprofit Law: church 5013c, irs gov, irs publication
irs gov, irs publication, federal income taxes: A church is not exempt from being a 501)(3) organization if it wants to be able to allow donors to deduct their donations from their federal income taxes. But, if you meant to write that you know that a church does not need to apply for exemption determination...

Nonprofit Law: Creating a 501c(3), low cost spay neuter clinic, community fundraisers
low cost spay neuter clinic, community fundraisers, laymen terms: You are welcome. 1. I highly recommend that you have three directors who are unrelated by blood, marriage, residential address, or for-profit business relationships. The IRS wants at least 3 unrelated directors for public charities and, in any case,...

Nonprofit Law: Deposit Refunds, youth sports program, attorney client relationship
youth sports program, attorney client relationship, harvey mechanic: You may go to small claims court, but generally you would first need to put your demand in writing to the organization and wait a reasonable amount of time for them to reply. You would seek action individually. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com...

Nonprofit Law: disbersment of funds, team gymnasts, attorney client relationship
team gymnasts, attorney client relationship, harvey mechanic: The IRS has no objection if you change your beneficiaries, as long as they remain youth in sporting or arts. However, you would need to check your Articles of Incorporation and Bylaws to see if an amendment is required. Harvey Mechanic, Attorney at Law...

Nonprofit Law: disbursements from Booster Club account, irs publication 535, www irs gov
irs publication 535, www irs gov, harvey mechanic: See page 41 of IRS Publication 535 at www.irs.gov/pub/irs-pdf/p535.pdf starting in the first column under the heading Accountable Plans which the organization must have. That section is written for employees but also applies to volunteers. See the section...

Nonprofit Law: Dissolving of our church, gov ernment, www irs gov
gov ernment, www irs gov, charity organization: Even though the church did not obtain a determination letter from the IRS that the organization is exempt under section 501(c)(3) it would have had appropriate articles of organization and have operating as a 501(c)(3) organization should. See instructions...

Nonprofit Law: The documents to retain permanently for a 501(C)(3), attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. Public Charities Record Keeping Requirements...

Nonprofit Law: Donation from 501 C (3) to 501 C (7), attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, 501c 3: The recipient may come to be subject to a 25% excise tax as well as paying regular income taxes on the fund. The organization s managers would be subject to an excise tax equal to 10% of the excess benefit if they knew that the compensation was excessive...

Nonprofit Law: fund-raising complications, articles of incorporation, 501 c 3 organizations
articles of incorporation, 501 c 3 organizations, charitable gift: http://goo.gl/Zm9Z6 starting at section 5002 is the California Nonprofit Corporation s law and specifically starting at 5110 is the law for Nonprofit Public Benefit Corporations. Down at §5210 we see --- Start of Excerpt --- Each corporation shall...

Nonprofit Law: Fundraising, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, year end celebration: A church may engage in some sales activities of what are called unrelated items (not Bibles, for example), but the proceeds are supposed to then go to charitable, educational or religious purposes, not for social or recreational purposes. Internal Revenue...

Nonprofit Law: Funds, excess benefit transactions, harvey mechanic
excess benefit transactions, harvey mechanic, private shareholder: Unless the member had a professional fundraising contract with the 501(c)(3) organization indicating what percentage he or she would receive of the collection, that member does not get any part of the money raised for the 501(c)(3) organization. Harvey...

Nonprofit Law: Gift Certificates to thank volunteers., california attorney general, private shareholder
california attorney general, private shareholder, internal revenue code section: The donations would not be deductible even if the funds went into the 501(c)(3) organization bank account. 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...

Nonprofit Law: Girl Scouts, girl scout promise, scout rules
girl scout promise, scout rules, volunteer leader: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your questions related to the organizations internal operating procedures which are found in their Articles of Incorporation...

Nonprofit Law: Gym employee on board, federal tax questions, irs publications
federal tax questions, irs publications, harvey mechanic: A conflict of interest is present whenever a director, and in some states an officer) has a material personal interest in a proposed contract or transaction to which the 501(c)(3) organization may be a party. Some conflicts do not result in any illegality....

Nonprofit Law: Gymnastics Booster Club, irs gov, field directive
irs gov, field directive, gymnastics team: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. Such a 501(c)(3) booster organization...

Nonprofit Law: Help in finding an inactive npo in TX,USA for immediate takeover, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The general information that I can give you in this context is that some states have filings for nonprofits that want...

Nonprofit Law: Interest on a loan from church to church member, www irs gov, harvey mechanic
www irs gov, harvey mechanic, irs publication: The loans would need to bring at least market-rate interest and be adequately secured. See http://www.irs.gov/pub/irs-tege/eotopicc90.pdf and on pdf page 5 we see, Other case examples of inurement include... inadequately secured loans, Lowry Hospital...

Nonprofit Law: loans, california corporations code, speculative investments
california corporations code, speculative investments, investment assets: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations that are not private foundations. Therefore, I am assuming that you are referring to a 501(c)(3) public charity. ...

Nonprofit Law: Mandatory buyout, boy scout troop, form 1099 misc
boy scout troop, form 1099 misc, www irs gov: You wrote, And since each scout has paid his yearly dues before the fundraiser starts, I don t understand how they can legally kick you out of the troop. We would need to first read the contract (agreement) of membership to see what is provided there upon...

Nonprofit Law: Money from a c6 to a new 501c3, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: The c6 may transfer the funds from the to the c3 depending upon their internal procedures such as listed in their Articles of Incorporation and Bylaws. However, as long as the c6 is going to remain after the transfer, you can not simply change the name of...

Nonprofit Law: Is a new Federal EIN needed?, irs revenue ruling, federal employer identification
irs revenue ruling, federal employer identification, federal employer identification number: The instructions for Form 990, which is for exempt organizations has, on the right column of page 19, If an exempt organization becomes a different legal entity, such as by changing its legal structure from a trust to a corporation or by dissolving in...

Nonprofit Law: Non Profit Board & Officer, public charity status, nonprofit corporation law
public charity status, nonprofit corporation law, www irs gov: As to the Nonprofit Corporation law in Tennessee, see www.lexisnexis.com/hottopics/tncode/ and, after agreeing to Lexis terms, you would click on the + to the left of Title 48 Corporations and Associations then click on the + to the left of Nonprofit...

Nonprofit Law: Non-Profit Employee salary requirements, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: The IRS does not allow 501(c)(3) organizations to give someone more compensation than what is reasonable. Starting on pdf page 10 of www.irs.gov/pub/irs-tege/eotopici93.pdf the IRS discusses many of the factors it would look at to decide whether a salary...

Nonprofit Law: Non-profit "endorsing" a for-profit company, water polo team, irs gov
water polo team, irs gov, internal memorandum: See the 1994 IRS internal memorandum Corporate Sponsorship Income www.irs.gov/pub/irs-tege/eotopico94.pdf especially page 10 Advertising v. Acknowledgment You will not have any issues as long as it is an acknowledgment and not what the IRS refers...

Nonprofit Law: Non-Profit Organization Personal Loan Overseas, www irs gov, harvey mechanic
www irs gov, harvey mechanic, u s treasury department: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv has, in part, that the 501(c)(3) organization must be operated exclusively for religious, charitable, scientific, testing for public safety, literary,...

Nonprofit Law: Nonprofit Baseball League, peewee league, nonprofit corporations
peewee league, nonprofit corporations, baseball league: You did not inform me whether the League is incorporated. Let me know if it is incorporated as a Texas Nonprofit Corporation. If it is, then the Texas Code sections for Nonprofit Corporations apply and they are available at: http://goo.gl/YYOWh Specifically...

Nonprofit Law: Nonprofit dissolution, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I asked for the subsection of section 501 and you gave me something about section 509 (not about section 501. Anyway section 509(a)(3) is available at http://bquot.com/eea and that refers to a 501(c)(3) organization that is treated by the IRS as a public...

Nonprofit Law: Another nonprofit question, public disclosure requirements, articles of incorporation
public disclosure requirements, articles of incorporation, exemption application: Every organization that I know of, which is a 501(c)(3) organization, wants to let people know, because the the potential donors would know that the donations are deductible. So you would simply ask the organization if donations to them are deductible and,...

Nonprofit Law: other group piggybacking on 501c3, internal revenue act, irs gov
internal revenue act, irs gov, field directive: Your bylaws would probably need to be amended unless it has a clause, like I usually put in, in addition to the specific purposes, that the organization may --- Start of Excerpt --- h) To engage in all activities necessary, useful or expedient, through...

Nonprofit Law: Parsonage Sales, irs audits, parsonages
irs audits, parsonages, property assets: 1-2. The burden will be on the church, if the IRS audits it, to show that the property was not sold for substantially less than fair market value. The federal courts have instructed the IRS to accept any generally admissible evidence as to that value. There...

Nonprofit Law: raffles, federal tax questions, unrelated business income
federal tax questions, unrelated business income, attorney client relationship: 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, if you let me know which is your state I may be able to direct you. As for the IRS, their...

Nonprofit Law: refunding of club dues and fees, travel soccer team, small claims court
travel soccer team, small claims court, certified mail: I have in my profile that this free forum is only for relevant IRS federal exemption issues of 501(c)(3) organizations. There is no federal law relating to issuing refunds for fees paid. Even though your issue is a question of state law, I will give...

Nonprofit Law: Regulations of fund raisers, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, competitive cheerleading: You are correct that the national organization has no authority over your local organization and, therefor, they have no authority over your fundraising. I don t know what the national organization can do if you do not comply with their requests, but, it...

Nonprofit Law: reimbursement, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: See www.irs.gov/pub/irs-pdf/p526.pdf at page 5 under the heading Out-of-Pocket Expenses in Giving Services we see that you could deduct the unreimbursed expenses that you paid for the use of the charitable organization. The details are found on page...

Nonprofit Law: School Club, irs publication 526, attorney client relationship
irs publication 526, attorney client relationship, harvey mechanic: If people donate to a public school those donations are deductible, even if the school has decided to use the funds for a particular educational activity. As to charitable deductions, see IRS Publication 526 Charitable Donations which is available...

Nonprofit Law: silent auction money recd for 503 organization, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: I am assuming that you made a typo and are referring to a 501(c)(3) organization. See the IRS Publication Charitable Donations --- Substantiation and Disclosure Requirements www.irs.gov/pub/irs-pdf/p1771.pdf on pdf page 3 a charitable organization...

Nonprofit Law: soccer booster club, profit soccer club, attorney client relationship
profit soccer club, attorney client relationship, harvey mechanic: A booster organization may support youth high school teams, in addition to other youth teams. My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/RO1ez and you may be interested to read that. Harvey Mechanic, Attorney...

Nonprofit Law: Soliciting Donations - other states, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, charitable solicitations: Generally, yes. www.after-prom.org/state_charity_contacts.html has links to the state offices that regulate charitable organizations and charitable solicitations. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended...

Nonprofit Law: starting nonprofit cheer booster club., attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: That is the general procedure for state filings. I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations, however so I will not be giving you a definitive answer as to the...

Nonprofit Law: tax exempt donations, irs publication 526, texas secretary of state
irs publication 526, texas secretary of state, attorney client relationship: The donors would take the deduction in the year 2012. Then is confirmed on page 13, starting at the bottom of the first column as to when to take charitable deductions in IRS Publication 526 Charitable Donations which is available at: http://www.irs.gov/pub/irs-pdf/p526.pdf...

Nonprofit Law: tiered membership in a 501(c)(3), attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs regulations: Both you and the board are incorrect. A 501(c)(3) booster organization can not require any assessments to families in exchange for benefits given to youth. My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/9b573...

Nonprofit Law: Travel Reimbursement - Gymnastics Team, irs publication 535, www irs gov
irs publication 535, www irs gov, irs rule: 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: www.irs.gov/pub/irs-tege/eotopich02.pdf the IRS refers extensively...

Nonprofit Law: Unreimbursed Officer Expenses, www irs gov, sole contributor
www irs gov, sole contributor, irs rule: You are welcome. 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: www.irs.gov/pub/irs-tege/eotopich02.pdf the...

Nonprofit Law: voting and nonvoting members, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: You would first need to check your Articles of Incorporation and Bylaws. I am assuming your organization has been incorporated in Florida as a nonprofit corporation. http://goo.gl/pbPdk is the Florida Not For Profit Corporation Act . Section 617.0601...

Nonprofit Law: Youth Sports, youth soccer program, www irs gov
youth soccer program, www irs gov, public charity: If you are a voting member (you can vote in the elections for the members of the Board of Directors) you may have some rights. Let me know if you are a voting member. Otherwise, you would need to look to any agreements you have with the group and their Articles...

Nonprofit Law: 1099 filing requirements, form 1099 misc, attorney client relationship
form 1099 misc, attorney client relationship, irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Even though your question does not relate to an exemption issue, I will give you some information. Whether your...

Nonprofit Law: 1099s and other IRS forms for foreign contractors and grantees, attorney client relationship, irs forms
attorney client relationship, irs forms, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Yours is a question about reports for contractors which applies to both for-profit and nonprofit. Even though your...

Nonprofit Law: 501(c) 3 -Treasurer Liability, public charity status, nonprofit corporation act
public charity status, nonprofit corporation act, michigan nonprofit corporation: I understand that you are the treasurer of the organization, but are you also a member of the Board of Directors? I am assuming that the organization was incorporated under the Michigan Nonprofit Corporation Act. Please confirm that. I have in my profile...

Nonprofit Law: 501c Non-Profit Pet Rescue, www irs gov, irs rule
www irs gov, irs rule, 13 cats: 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 ...

Nonprofit Law: 501c3 allowable spending, irs publication 535, www irs gov
irs publication 535, www irs gov, youth sports groups: 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 ...

Nonprofit Law: 501c3 donating, harvey mechanic, hotmail
harvey mechanic, hotmail, family classification: A 501(c)(3) organization needs to serve public, not private interests. Section 1.501(c)(3)-1(d)(1)(ii) of the regulations provides that an organization is not organized or operated exclusively for one or more exempt purposes unless it serves a public rather...

Nonprofit Law: 501c5, www irs gov, harvey mechanic
www irs gov, harvey mechanic, personal participation: It would not qualify as a 501(c)(3) organization as a cooperative is not qualified as such. In denying exemption to a purported 501(c)(3) organization in 1992 the IRS at http://goo.gl/e9Mkd on page 6 stated The reason you were created and your method of...

Nonprofit Law: Amend or Restate the Articles of Incorporation?, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: You can do either, but I recommend restating Articles of Incorporation so that everything is then on one document (not the original articles and and amendment on separate documents). Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This...

Nonprofit Law: Appreciation, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: Volunteers who were promised gifts - taxable income Oregon case http://goo.gl/F0OKL which is a newspaper story describing a situation when the State determined that organizations that promised volunteers gifts over the value of $50 per quarter were...

Nonprofit Law: Booster Club, www irs gov, irs rule
www irs gov, irs rule, busi ness: A 501(c)(3) organization may certainly reimburse beneficiaries for expenses that could be valid expenses of the 501(c)(3) organization originally. The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses when determining...

Nonprofit Law: Booster Club Start Up ?'s, irs publication 557, nonprofit corporation law
irs publication 557, nonprofit corporation law, www irs gov: Often booster organizations support other youth activities of other 501(c)(3) organizations. Therefore, a 501(c)(3) booster organization may be established to support the youth athletic teams that are playing for the Salvation Army. If you want donors...

Nonprofit Law: Boosters keeping individually raised funds?, small claims court, certified mail
small claims court, certified mail, service contracts: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issue is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Canada/USA charitable deduction, attorney client relationship, personal income taxes
attorney client relationship, personal income taxes, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. You are asking a question about your Canadian personal income taxes and about your U.S. personal income taxes. But...

Nonprofit Law: CEO of Non-profit sign checks, federal tax questions, harvey mechanic
federal tax questions, harvey mechanic, www irs gov: A conflict of interest is present whenever a director, and in some states an officer) has a material personal interest in a proposed contract or transaction to which the 501(c)(3) organization may be a party. Some conflicts do not result in any illegality....

Nonprofit Law: Changes in 501(c)(3) laws, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: There is nothing new in the code or regs. You may interested to know that the IRS recently reaffirmed the basic principals. For example in June of 2011 the IRS wrote: ---Start of Excerpt-- If a booster club confers a benefit on a participant in return...

Nonprofit Law: Cheerleading Booster Club, irs publication 557, nonprofit corporation law
irs publication 557, nonprofit corporation law, www irs gov: A 501(c)(3) booster organization may certainly fund cheer activities of youth at a charter school that is either a 501(c)(3) organization itself or an instrumentality of the states. If you wanted to use the school s name you may need to obtain their permission...

Nonprofit Law: Deferred Salary for non-profit's only employee, full time job, legal standpoint
full time job, legal standpoint, substantial limitations: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. A 501(c)(3) organization may defer payments to an employee. The IRS has written: --- Start of Excerpt --- Income...

Nonprofit Law: directing 5013C donations towards specific personal real estate, irs publication 526, harvey mechanic
irs publication 526, harvey mechanic, www irs gov: 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 6 middle column under the heading Contributions You Cannot Deduct is 3. The part of a contribution...

Nonprofit Law: Disbursement of non-profit funds, irs gov, irs publication
irs gov, irs publication, articles of incorporation: I am assuming from what you wrote that she was told by a non-lawyer and non-government officer that any monies collected must be used or distributed to other organizations for the blind in Nevada only. If that assumption is not correct, let me know what are...

Nonprofit Law: Discriminatory Practice by 501 (c) (3), tax exempt status, c 3 company
tax exempt status, c 3 company, adoption application: The IRS has regulations prohibiting 501(c)(3) organization status to schools that discriminate on the basis of race. As for other forms of discrimination, they would not be allowed if they are found to be against the public interest. ---Start of Excerpt--...

Nonprofit Law: dissolution of 501 (c) (3), nonprofit corporation act, attorney client relationship
nonprofit corporation act, attorney client relationship, harvey mechanic: As you wrote that you were in West Virginia, if the organization is a corporation it would need to comply with the the West Virginia Nonprofit Corporation Act which is available at: http://law.justia.com/codes/west-virginia/2011/chapter31e/ and specifically...

Nonprofit Law: Donations to 501c6, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, harvey mechanic: An unrestricted donation would not be allowed. Sometimes 501(c)(3) organization have grants to even for-profit organizations, but then those would be limited for use for charitable, educational or religious activities. For example, see http://goo.gl/XfAZX...

Nonprofit Law: Executive Director Severance, private inurement, irs regulations
private inurement, irs regulations, severance pay: It is against IRS regulations for a 501(c)3 organization to give severance pay or any substantial gift to an outgoing employee unless it is required by a long-standing employment contract. Such payments would be a prohibited use of funds as the funds...

Nonprofit Law: executives compensation, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. The IRS does not allow 501(c)(3) organizations to give someone more compensation than what is reasonable. Starting...

Nonprofit Law: Function of a Board of Directors/Trustees, nonstock corporations, national center for nonprofit boards
nonstock corporations, national center for nonprofit boards, attorney client relationship: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your issue is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: gymnast sponsor-transfer?, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I would like to know whether the gym is a for-profit or nonprofit exempt 501(c)(3) organization. Let me know which and then I will reply further. Also did the business specify that the $1000 were to be used for your daughter s training. Was part of the $1000...

Nonprofit Law: Health Insurance Opt out, employment law specialist, attorney client relationship
employment law specialist, attorney client relationship, harvey mechanic: I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Your question is not related to exemption. It is, in fact, an employment issue and applies to nonprofits as well as...

Nonprofit Law: Hosting for-profit to raise funds, unrelated business income, harvey mechanic
unrelated business income, harvey mechanic, www irs gov: The word donation is not accurate in this context. In an Internal Memorandum from the year 2000, Fund Raising Issues: the IRS explained further, where a payment is made in return for an item or benefit, the presumption is that such payment is the purchase...

Nonprofit Law: Is it legal for a parent to obtain a business sponsor to pay for his son's participation costs to be on the team?, www irs gov, participation costs
www irs gov, participation costs, volunteer worker: 1. The IRS explains at: www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf on page 72-73 (takes a while to load as it is a 91 page pdf file): --start of excerpt --- The use of the term volunteer generally has no significance in applying the tax law.......

Nonprofit Law: Love offerings, irs publication 526, www irs gov
irs publication 526, www irs gov, issue checks: Correct on #2. As for the other method, I had put that your congregation can give checks made to the names of the speakers and that would avoid any issues for the church, but I deleted it by mistake. As for the missionary, Revenue Ruling 56-304 has: ---...