About Experts Sitemap - Group 38 - Page 49 2016-08-16

Nonprofit Law: What to do with non profit donations that are not needed?, tax donation receipt, unrelated business income
tax donation receipt, unrelated business income, www irs gov: A 501(c)(3) organization may certainly sell donated items. In fact, the activity is not taxable. See IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations . In the middle column of page 7 there is an exception discussed for the sales...

Nonprofit Law: non profit funding & work therapy, harvey mechanic, legal obstacles
harvey mechanic, legal obstacles, 501 c 3 organizations: Work for pay is generally taxable and it appears that the people would not be volunteers as they would not get their housing without the work. The Salvation Army may do therapy and have their people work, but the church or company is not doing the therapy...

Nonprofit Law: non profit tax law, harvey mechanic, employer identification number
harvey mechanic, employer identification number, taxpayer identification number: Which question on the form 990 are you referring to? If you are referring to income and expenses generally, then they would not include any income or expenses of an organization that has a separate EIN (Employer Identification Number, also known as the taxpayer...

Nonprofit Law: nonproift donating to an unrelated nonprofit, irs gov, harvey mechanic
irs gov, harvey mechanic, volunteer firefighters: The IRS has written in an internal memo in 2005 on page 2, A section 501(c)(3) organization may make grants to another section 501(c)(3) organization [one that is not a private foundation]. There is no geographic or other limitation. www.irs.gov/pub/irs-wd/0504031.pdf...

Nonprofit Law: Officers, harvey mechanic, www irs gov
harvey mechanic, www irs gov, corporations law: 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 generally,...

Nonprofit Law: Partial Fundraising Benefit, youth sports organizations, unrelated business income
youth sports organizations, unrelated business income, harvey mechanic: You are welcome. You would need to give 1099s to each sales person and may raise other issues. See starting at the bottom of page 2 of www.irs.gov/pub/irs-wd/02-0041.pdf where the IRS wrote in a related matter: You have asked whether issuing a Form...

Nonprofit Law: Private benefit of non profit board members, www irs gov, private benefit
www irs gov, private benefit, profit space: Hi, Kimberly, 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 by non profit you are referring to a 501(c)(3) organization. A 501(c)(3)...

Nonprofit Law: Property of a 501(c)(3), form 990 ez, harvey mechanic
form 990 ez, 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. Starting for the tax year 2010, tax-exempt organizations (other than churches) with annual gross receipts that are...

Nonprofit Law: Public Support - 2% test, harvey mechanic, www irs gov
harvey mechanic, www irs gov, gov pub: You can see Section 509(a)(2) at: http://bit.ly/amhXof and that has from persons other than disqualified persons (as defined in section 4946) Section 4946 is at: http://bit.ly/cJRt2w and has family at subsection (d) defined as (d) Members...

Nonprofit Law: paying a member of a non profit club, sierra nevada conservancy, harvey mechanic
sierra nevada conservancy, harvey mechanic, 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. I am assuming, therefore, that your organization is a 501(c)(3) organization. There is no problem if a 501(c)(3) organization...

Nonprofit Law: Reimbursement for Personal Expenses, www irs gov, federal per diem
www irs gov, federal per diem, per diem rates: You would need to obtain a contract with the organization that includes the requirement that the organization reimburse you for payments that you make for items that they want. See www.irs.gov/pub/irs-pdf/p535.pdf Business Expenses on page 40 which has...

Nonprofit Law: Reporting Purchase of Goods, form 990 ez, harvey mechanic
form 990 ez, harvey mechanic, www irs gov: The IRS would have an issue if there was substantial private benefit. An extensive discussion of by the IRS of the private benefit issue relating to 501(c)(3) organizations is found at: www.irs.gov/pub/irs-tege/eotopich01.pdf (it takes a while to load the...

Nonprofit Law: Retailer's Rewards Programs, irs publication 526, youth sports clubs
irs publication 526, youth sports clubs, 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 you are referring to a 501(c)(3) organization. The rewards may go to the benefit of the team....

Nonprofit Law: what is required, www irs gov, harvey mechanic
www irs gov, harvey mechanic, irs requirement: Form 990 instructions are at www.irs.gov/pub/irs-pdf/i990.pdf and specifically note on page 5 on the right column that a church is not required to file form 990 or form 990EZ. Also a church is not required to file for exemption determination by the IRS....

Nonprofit Law: required filing of income tax to retain non-profit status, form 990 ez, www irs gov
form 990 ez, www irs gov, harvey mechanic: Starting for the tax year 2010, tax-exempt organizations (other than churches) with annual gross receipts that are normally $50,000 or more must file Form 990 or Form 990-EZ. www.irs.gov/charities/article/0,,id=184445,00.html Those exempt organizations...

Nonprofit Law: Starting a non-profit, irs gov, harvey mechanic
irs gov, harvey mechanic, 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 that are not private foundations. The IRS wants the Board of Directors of such organizations to not be controlled by...

Nonprofit Law: setting up a Non-Profit under a For Profit LLC..., irs gov, harvey mechanic
irs gov, harvey mechanic, private shareholders: No. 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: starting up a non-profit club with paid workers, irs gov, harvey mechanic
irs gov, harvey mechanic, irs rules: Right. They want you to follow all normal employment tax rules. If the coach is an employee, then you would use form W-2. If the coach is an independent contractor, then you would use form 1099. You should review Employer Tax Guide www.irs.gov/pub/irs-pdf/p15.pdf...

Nonprofit Law: Theft by a board member, public benefit corporations, nonprofit public benefit
public benefit corporations, nonprofit public benefit, harvey mechanic: If you are a board member, you are responsible to the organization to not be grossly negligent in trying to recover the funds. http://law.justia.com/california/codes/corp.html starting at section 5002 is the California Nonprofit Corporation s law and specifically...

Nonprofit Law: Transfer of money to a foreign school, u s treasury department, irs gov
u s treasury department, irs gov, harvey mechanic: www.ustreas.gov/offices/enforcement/ofac/programs has the list of countries that the U.S. Treasury Department has on its sanctions list and, if you are dealing with parties in any of the listed countries, you would need to review the details as to whether...

Nonprofit Law: UBIT and Church Rental, unrelated business income, harvey mechanic
unrelated business income, harvey mechanic, www irs gov: 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 the charitable, educational, religious or other purpose or function ...

Nonprofit Law: Umbrella of another Non-Profit, contract negotations, harvey mechanic
contract negotations, harvey mechanic, irs 501 c 3: 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 IRS regulations, it is up to the organization that has IRS 501(c)(3) status to make sure that the funds are...

Nonprofit Law: Undue Influence of For-profit gym on boosters organization, sports booster club, www irs gov
sports booster club, www irs gov, irs regulations: The 501(c)(3) organization can control the information that they share with the for-profit gym and should not inform the coach which families are participating in the 501(c)(3) booster organization. Otherwise, they would be conspiring with the coach to evade...

Nonprofit Law: USA Non Profit working overseas, harvey mechanic, www irs gov
harvey mechanic, www irs gov, international grants: See www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and international activities of U.S. exempt organizations, and, especially page 3-4 about grants to foreign organizations starting on page 3 at Deductibility - Control Rules...

Nonprofit Law: Using School's Tax id number, harvey mechanic, sports booster club
harvey mechanic, sports booster club, employer identification number: Your booster organization appears to be operating not an entity separate from the school board as you are using their EIN (Employer Identification Number, also known as the taxpayer identification number). Therefore, you are like a committee of the school...

Nonprofit Law: Value of donated hand made items, irs publication 526, irs gov
irs publication 526, irs gov, harvey mechanic: The 501(c)(3) organization organization does not value the property and does not indicate any value on the receipt. I am assuming your organization is a 501(c)(3). If so, it would simply give an acknowledgment of the item and whether it appears to be new...

Nonprofit Law: Value of inkind hours, form 990 instructions, harvey mechanic
form 990 instructions, harvey mechanic, www irs gov: No. A 501(c)(3) organization does not put a dollar value of volunteer labor in form 990. Instructions for Form 990 are at: www.irs.gov/pub/irs-pdf/i990.pdf and we see on the first column of page 10 at the instructions to Part I, line 6 Enter the number...

Nonprofit Law: Valuing In-Kind Coupon donations, free flu vaccinations, www irs gov
free flu vaccinations, www irs gov, irs publication: It appears that you, like many other questioners, are asking primarly how they give a written acknowledgment of non-cash donations. Your organization does not value the property and does not indicate any value on the receipt. I am assuming your organization...

Nonprofit Law: Violation of bylaws, ohio attorney general, nonprofit funds
ohio attorney general, nonprofit funds, attorney generals: 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. However,...

Nonprofit Law: Voting on Bylaws, mutual benefit corporations, mutual benefit corporation
mutual benefit corporations, mutual benefit corporation, harvey mechanic: http://law.justia.com/california/codes/corp.html starting at section 5002 is the California Nonprofit Corporation s law and specifically starting at 7110 is the law for Nonprofit Mutual Benefit Corporations. You can confirm that yours is a Nonprofit...

Nonprofit Law: youth league withholding product without sponsor, harvey mechanic, nonprofit corporation
harvey mechanic, nonprofit corporation, breach of contract: It appears that you are asking about a 501(c)(3) Texas nonprofit corporation. Such corporations are bound by regular contract procedures, and, if you were promised certain products and services before you paid a registration fee, then they are in breach of...

Nonprofit Law: 501(c)3 For Dog Rescue, nonprofit corporation law, irs service
nonprofit corporation law, irs service, internal revenue code section: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations and not to be treated by the IRS as a normal, for-profit business, you would need to establish a charitable trust, incorporate under a state s...

Nonprofit Law: 5013c dissolution, harvey mechanic, www irs gov
harvey mechanic, www irs gov, community ice rink: Your articles of incorporation should have had a clause relating to dissolution such as ---Start of Excerpt-- Sixth: Upon the dissolution of the corporation, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3)...

Nonprofit Law: 501c3, harvey mechanic, irs regulations
harvey mechanic, irs regulations, parents clubs: It appears that you did not absorb one of the points that I had in my summary of booster club regulations as to the IRS. You can not require parents to join your organization. If the membership is optional, then a family can join and pay a membership fee,...

Nonprofit Law: 990-N, www irs gov, harvey mechanic
www irs gov, harvey mechanic, irs news: If a return was required but not made, then you can complain to the IRS. Complaints to the IRS regarding Exempt Organizations are discussed at www.irs.gov/charities/article/0,,id=131651,00.html which has mailing address and then the details are in a pdf...

Nonprofit Law: Access to ByLaws, public disclosure requirements, irs gov
public disclosure requirements, 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. If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the IRS it has an...

Nonprofit Law: Advertising v. Acknowledgment, school sports team, www irs gov
school sports team, www irs gov, harvey mechanic: 1. None unless you keep the posting in the calendar as what the IRS calls an acknowledgment. See, starting at the middle of page 10 of www.irs.gov/pub/irs-tege/eotopico94.pdf under the heading B. Advertising v. Acknowledgment as to the discussion. ...

Nonprofit Law: Booster Club, harvey mechanic, competition fees
harvey mechanic, competition fees, fundraising money: Yes, you can certainly refund amounts that are overpaid by the families. Note that their funding is not allowable as a deductible contribution for tax purposes as they are considered fees or advances towards fees. You are correct that you may not refund...

Nonprofit Law: Out of Budget Expenses, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, articles of incorporation: 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: benefits of non-exempt, non-profit, tax exempt status, form 1120
tax exempt status, form 1120, 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. You indicated that you understand that the IRS would not give any benefit to a state nonprofit corporation that does...

Nonprofit Law: benevolence, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, internal revenue code: 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 granting an individual monetary assistance...

Nonprofit Law: Car Club, www irs gov, employer identification number
www irs gov, employer identification number, annual membership dues: The IRS explains that, when applying for the Employer Identification Number, the club may check the line for banking purposes only and gives the examples, a bowling league for depositing dues or an investment club for dividend and interest reporting)....

Nonprofit Law: Ceo donating to nonprofit
The laws and regulations as to charitable deductions are at: 26 U.S.C. §170 http://is.gd/dbMIW and 26 C.F.R. § 1.170A-1 http://snipr.com/bhouw A more readable description is in IRS Publication 526 Charitable Donations www.irs.gov/pub/irs-pdf/p526.pdf...

Nonprofit Law: Changing Name and Director, state corporations division, www irs gov
state corporations division, www irs gov, articles of incorporation: I am assuming the nonprofit organization is a corporation. To change its name, 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. After you receive the...

Nonprofit Law: Cheerleading organization, harvey mechanic, cheerleading organization
harvey mechanic, cheerleading organization, cheerleading association: You can add that to your bylaws, but that would not mean that, under state law, your previous actions were valid or legal. In other words, the effect of bylaws can not be retroactive in effect, under state law. Harvey Mechanic, Attorney at Law Harvey108@hotmail.co...

Nonprofit Law: change of church fiscal year, www irs gov, harvey mechanic
www irs gov, harvey mechanic, group exemption: See www.irs.gov/pub/irs-pdf/f1128.pdf Application To Adopt, Change, or Retain a Tax Year The instructions are at: www.irs.gov/instructions/i1128/ch01.html and specifically we see ---Start of Excerpt-- An organization exempt under section 501(a) does...

Nonprofit Law: Will we have to close our store if we apply for non-profit status?, unrelated business income, unrelated business activities
unrelated business income, unrelated business activities, federal tax exemption: 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: Can my company change from a 501c6 to a 501c3?, irs publication 557, irs memo
irs publication 557, irs memo, harvey mechanic: See IRS Publication 557 Tax Exempt Status for Your Organization www.irs.gov/pub/irs-pdf/p557.pdf on page 66 (footnote 2) An organization exempt under a subsection of Code sec. 501 other than 501(c)(3) may establish a charitable fund, contributions...

Nonprofit Law: cooperative nursery school, cooperative nursery school, charitable contribution deduction
cooperative nursery school, charitable contribution deduction, irs gov: Many of my answers in which I mentioned that cooperatives would not be granted 501(c)(3) organization status related to boosters organizations. The IRS has different rules for schools and the cooperative nature would not, in itself, cause the IRS to deny...

Nonprofit Law: donation values, irs gov, harvey mechanic
irs gov, harvey mechanic, irs publication: Your organization does not value the property and does not indicate any value on the receipt. I am assuming your organization is a 501(c)(3). If so, you would simply give an acknowledgment of the make and model and whether new or used. See the IRS Publication...

Nonprofit Law: drama booster club, nonprofit corporation law, irs service
nonprofit corporation law, irs service, internal revenue code section: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations and not to be treated by the IRS as a normal, for-profit business, you would need to establish a charitable trust, incorporate under a state s...

Nonprofit Law: Earned Income vs. Donations Guidelines?, nonprofit media organization, irs guidelines
nonprofit media organization, irs guidelines, 501 c 3 organizations: You are welcome. the general rules are at www.irs.gov/pub/irs-pdf/p557.pdf starting on page 29 Qualifying as Public Supported . However, the IRS would not use those rules to decide the issue as to your subsidized charges. They would need to look at...

Nonprofit Law: Fundraiser Buy outs, harvey mechanic, nonprofit league
harvey mechanic, nonprofit league, taxable compensation: They probably phrased it wrong but a nonprofit league may charge a fee and then waive the fee if the family works for the organization in a certain context. However, then, such work is considered taxable compensation (work for benefits). Thank you for...

Nonprofit Law: Golf shirts, unrelated business income, www irs gov
unrelated business income, www irs gov, irs publication: I don t know which of my 9741 answers you are referring to. If you want to give me the url I will check on it. Other than that, I can inform you that I would need to see the logo on the shirt in a photo or layout before I could give you an opinion. However,...

Nonprofit Law: Hiring Board Member, federal tax questions, www irs gov
federal tax questions, www irs gov, public charities: http://law.justia.com/oklahoma/codes/os18.html is the Oklahoma Corporations Code and I searched within that for conflict and did not find anything relevant However, note down about 1/2 of the way down that page ---Start of Excerpt-- §18867. Director...

Nonprofit Law: In-kind & Public Benefit Test, harvey mechanic, www irs gov
harvey mechanic, www irs gov, property magazines: The IRS would treat mobile phone accounts as a donation of services and that is accounted for as no value. See www.irs.gov/pub/irs-pdf/p526.pdf at the top of page 5 is a chart Table 2 that shows that a taxpayer may not deduct as a donation the value of...

Nonprofit Law: How to know what portion of a Charitable Sponsorship is Tax Deductible as Donation, irs pub 526, celebrity golf tournament
irs pub 526, celebrity golf tournament, irs gov: 1. The statement tax deductible is a non-standard way of referring to the IRS approved term deductabke as charitable donation. 2. There are certain items of value that the IRS overlooks as on page 7 of the instructions to the 501(c)(3) organizations...

Nonprofit Law: license fees / commissions, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, internal revenue code: 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: Membership Value Decreasing Deduction Value, irs publication 557, irs pub 526
irs publication 557, irs pub 526, irs gov: As to charitable deductions: See IRS Publication 526 Charitable Donations www.irs.gov/pub/irs-pdf/p526.pdf in the first column of page 4 ---Start of Excerpt-- Membership fees or dues. You may be able to deduct membership fees or dues you pay to a ...

Nonprofit Law: memorial funds, harvey mechanic, www irs gov
harvey mechanic, www irs gov, will make every effort: A church may use donated funds in different ways, but they must be for uses that are charitable, educational or religious as long as the church wants to maintain its 501(c)(3) organization status. Internal Revenue Code section 501(c)(3) which is at: http://pages.citebite.com/w8p5e1ayxjv...

Nonprofit Law: Non Profit, irs publication 557, irs gov
irs publication 557, irs gov, harvey mechanic: Yes, from what you informed me you would qualify for 501(c)(3) organization status. Make sure, though, that you do not give anyone any salary that is more than reasonable . See, generally, IRS Publication 557 Tax Exempt Status for Your Organization www.irs.gov/pub/irs-pdf/p557.pdf...

Nonprofit Law: Non-Profit Foundation Issue, irs gov, harvey mechanic
irs gov, harvey mechanic, cso members: You earlier used the term pass-through entity but, from what you are writing now, I don t see anything relating to what the IRS would call a pass-through or conduit . www.irs.gov/pub/irs-tege/eotopice96.pdf is an IRS publication about prohibited...

Nonprofit Law: Nonprofit Law - Return of donation from non-profit organization, neighborhood coalition, nonprofit law
neighborhood coalition, nonprofit law, 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: Operating for-profit from 501(c)(3), harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, worship activities: 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 require advance notification of the cleaning business as long as the church maintains its substantial...

Nonprofit Law: Placing a non-profit on hold, harvey mechanic, consignment store
harvey mechanic, consignment store, irs: Once you pay for the filing fee with the IRS they will not refund it. Therefore, I suggest that you simply give them a revised budget for the next 3 years and, then they will make a determination as to your exemption. Thank you for asking. Harvey Mechanic,...

Nonprofit Law: Preschool in church, unrelated business taxable income, harvey mechanic
unrelated business taxable income, 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 church would not lose IRS exemption as to the rental as long as it maintains its substantial worship activities....

Nonprofit Law: Profit, or not?, medical emergency fund, harvey mechanic
medical emergency fund, harvey mechanic, www irs gov: See www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is pdf page 7 of that pdf file) as to the discussion of Charitable Class --start of excerpt --- The group of individuals that may properly receive assistance from a charitable organization...

Nonprofit Law: PTO public support, www irs gov, harvey mechanic
www irs gov, harvey mechanic, cookie dough sales: See www.irs.gov/pub/irs-pdf/p557.pdf starting on page 29 right column Qualifying as Public Supported ---Start of Excerpt-- One-third support test. An organization will qualify as publicly supported if it normally re- ceives at least one-third of its...

Nonprofit Law: Does a Quilt Guild need to be 501c?
From their online EIN application page https://sa2.www4.irs.gov/modiein/individual/index.jsp and hitting begin application and then on the next screen we hit View Additional Types, Including Tax-Exempt and Governmental Organizations and then on the...

Nonprofit Law: Raffle prizes for nonprofit org, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, raffle prizes: 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 the IRS, the $250 cash prize is not a problem as long as the income exceeds the payout. Otherwise, it could...

Nonprofit Law: Recusal of members from board decision, harvey mechanic, financial conflict
harvey mechanic, financial conflict, exec board: Massachusetts law for Corporation for Charitable and Certain Other purposes is found at: http://tinyurl.com/5p5fm2 Specifically, note down at section 3 ---Start of Excerpt-- A corporation may have one or more classes of members. If the corporation...

Nonprofit Law: Religious Organization, harvey mechanic, open meetings law
harvey mechanic, open meetings law, 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. However, I will direct you to see www.rcfp.org/ogg/index.php?op=browse&state=fl (which is slow loading) specifically...

Nonprofit Law: Rental income from use of church property, unrelated business taxable income, harvey mechanic
unrelated business taxable income, 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. See page 9 of www.irs.gov/pub/irs-pdf/p598.pdf wherein we see Rents from real property... are excluded in computing...

Nonprofit Law: Reunion Account, club sports teams, www irs gov
club sports teams, www irs gov, tax exempt organizations: From their online EIN application page https://sa2.www4.irs.gov/modiein/individual/index.jsp and hitting begin application and then on the next screen we hit View Additional Types, Including Tax-Exempt and Governmental Organizations and then on the...

Nonprofit Law: refund of donated items and money, harvey mechanic, boy scout troop
harvey mechanic, boy scout troop, 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: registration of a 501 c 3 charity, state corporations division, harvey mechanic
state corporations division, harvey mechanic, www irs gov: They would need to register the Kansas corporation in the new state as a Foreign Nonprofit to be authorized to do business in that new state. The filing is usually with the Secretary of State, Corporations Division of the State and they do charge a fee....

Nonprofit Law: reinbursments of money, harvey mechanic, nonprofit corporation law
harvey mechanic, nonprofit corporation law, 501 c 3 organizations: You can see the Ohio Nonprofit Corporation law http://law.justia.com/ohio/codes/orc/jd_1702-729.html If you don t find anything relevant there, I suggest that you negotiate a contract with the 501(c)(3) organization that will specify your compensation....

Nonprofit Law: Sales Tax for non-for-profits, harvey mechanic, sales tax exemption
harvey mechanic, sales tax exemption, irs 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. Your issue is controlled by state law and states may differ somewhat with how they would treat such issues. Even though...

Nonprofit Law: Swim Booster Tax exempt, harvey mechanic, www irs gov
harvey mechanic, www irs gov, nonprofit corporation law: You are referring to 501(c)(3) organization status from the IRS and to obtain a determination letter from the IRS that the organization is exempt under section 501(c)(3) business, you would first need to establish a charitable trust, incorporate under a state...

Nonprofit Law: sell of church property without congregation approval, harvey mechanic, westfield rd
harvey mechanic, westfield rd, trustee board: You would look at the articles of incorporation and they will surely indicate whether or not the organization was incorporated under the Texas Nonprofit Law. If not, let me know what type of corporation it is. The articles take precendence over the bylaws,...

Nonprofit Law: Transportation Donation for Non-Profit Booster, irs publication 526, irs gov
irs publication 526, irs gov, school field trips: They may only deduct their actual expenses or 14 cents per mile. I am assuming that your booster organization has received a determination letter from the IRS that the organization is exempt under section 501(c)(3), not as a private foundation. As for your...

Nonprofit Law: Treasurer, harvey mechanic, irs regulations
harvey mechanic, irs regulations, 501 c 3 organizations: I have never seen anything close to that in the United States Code or in IRS regulations. There would never be anything like that, as there are many treasurers of 501(c)(3) organizations who volunteer their services. Thank you for asking. Harvey Mechanic,...

Nonprofit Law: Type of, personal bank account, employer identification number
personal bank account, employer identification number, www irs gov: The proper procedure is for the youth team to apply for 501(c)(3) organization status. Otherwise, all of the sales income is taxable as ordinary business income. I have in my profile that this free forum is only for general questions relating to IRS federal...

Nonprofit Law: after being under an umbrella corp, harvey mechanic, umbrella corp
harvey mechanic, umbrella corp, umbrella corporation: Yes, that number does include the years in the group exemption back to their organization was formed as an entity. If incorporated, that would mean the date of incorporation with the State. Thank you for asking. Harvey Mechanic, Attorney at Law - ...

Nonprofit Law: 501 c 6 financial disclosure, financial disclosure, 501 c 6
financial disclosure, 501 c 6, parliamentary procedure: I don t know exactly what either federal or state law says, but I d think it fairly likely that state law may give you as a member the right to *inspect* the financial records. No special rights for former treasurers, but there may be general rights for members....

Nonprofit Law: Advertising for New members, harvey mechanic, determination letters
harvey mechanic, determination letters, church newsletters: A 501(c)(3) organization like a university may certainly advertise to try to get new members. Note that you would need to have the same membership guidelines as you proposed to the IRS in your exemption application. Exempt organizations determination letters...

Nonprofit Law: advertising in a 501 C 3 newsletter, unrelated business income, unrelated business activities
unrelated business income, unrelated business activities, federal tax exemption: 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 the charitable, educational, religious or other purpose or function ...

Nonprofit Law: art donations to Foundation, irs publication 526, irs gov
irs publication 526, 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. Your issue as to state sales tax is controlled by state law and states may differ somewhat with how they would treat...

Nonprofit Law: Board Meetings, Executive session, open meeting
Executive session, open meeting: Disclaimer: I m an expert in Robert s Rules of Order, not the law. I m a parliamentarian, not an attorney. Don t take what I say as legal advice. The answer to your question depends on what rules govern your board. If it is a 501(c)(3) or some other...

Nonprofit Law: Booster Club, harvey mechanic, employer identification number
harvey mechanic, employer identification number, general liability insurance: The former operation was under the school. Therefore, I am assuming that the school was a public school unless you inform me otherwise. The IRS does not, as a policy, go after public schools for booster activities, even if there is taxable income from sales...

Nonprofit Law: Can a booster club support two different organizations, harvey mechanic, cheerleading gym
harvey mechanic, cheerleading gym, irs regulations: 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. That organization may support youth who...

Nonprofit Law: booster clubs, harvey mechanic, gymnastics school
harvey mechanic, gymnastics school, tax exposure: It depends whether the organization wants the IRS to treat them as exempt or whether they want to be treated as a for-profit entity. If they want to be an exempt organization they would need to file for exemption with the IRS. Otherwise, they will be treated...

Nonprofit Law: Check if it is a legitimate organization, irs publication 557, public disclosure requirements
irs publication 557, public disclosure requirements, www irs gov: 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: Clarification on organizations not required to file form 1023, irs publication 557, other than private foundations
irs publication 557, other than private foundations, www irs gov: Some entities eligible to receive tax deductible charitable contributions may not be listed in Publication 78...public charities whose annual gross receipts are normally not more than $5,000 may be treated as tax-exempt without filing an application ...

Nonprofit Law: Class Reunion, harvey mechanic, tax deductible donations
harvey mechanic, tax deductible donations, internal revenue code section: I don t believe that I wrote that obtain 501(c)(3) organization status was unnecessary. If I did, please send me the URL or date of the posting that I made and I will correct that posting. A class reunion does not qualify for 501(c)(3) organization status....

Nonprofit Law: Con somebody that is not a non-profit orginazation accept donations?, harvey mechanic, accepting donations
harvey mechanic, accepting donations, internal revenue code: The acceptance of gifts is allowed and not taxable. 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://is.gd/dbMVW They may not,...

Nonprofit Law: Control of Booster Club by Private School, harvey mechanic, tax exempt status
harvey mechanic, tax exempt status, booster organization: 1. It appears that the principal has no authority over the decisions of the booster club if the booster organization has been established as an entity separate from the private school and the booster organization has not made an agreement with the school as...

Nonprofit Law: Converting a Private Foundation to Public Charity, public charity status, public benefit corporation
public charity status, public benefit corporation, private foundation status: First let me know what type of entity the present foundation is, i.e. trust, unincorporated association or a nonprofit corporation in California of some type other than a public benefit corporation. If it is a nonprofit corporation let me know what state...

Nonprofit Law: cash giveaway fundraiser, irs publication 526, www irs gov
irs publication 526, www irs gov, harvey mechanic: www.irs.gov/pub/irs-tege/notice_1340.pdf is an IRS Publication regarding raffle withholding requirements For the IRS rules see their publication: www.irs.gov/pub/irs-pdf/p3079.pdf Tax-Exempt Organizations and Gaming For State rules where you will...

Nonprofit Law: Day Care, www irs gov, harvey mechanic
www irs gov, harvey mechanic, property tax exemption: 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 Day Care organization may be granted 501(c)(3) organization status either as charitable or as educational or it...

Nonprofit Law: Domain Name Reg Issues, federal trademark registration, harvey mechanic
federal trademark registration, harvey mechanic, domain name reg: 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 not issues as to federal exemption. 1. Such domain issues are the same for both for-profits...

Nonprofit Law: Donation Fund for Relative, irs publication 557, nonprofit corporation law
irs publication 557, nonprofit corporation law, tax deduction purposes: You are correct. In order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations and not to be treated by the IRS as a normal, for-profit business, she would need to establish a charitable trust, incorporate under...

Nonprofit Law: Donations to Incorporated Non-Profit Before Filing 1023, irs publication 557, irs gov
irs publication 557, 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. Therefore, I am assuming that you are referring to a 501(c)(3) organization. I am also assuming that, when you incorporated...

Nonprofit Law: Donations prior to 501(c)(3) status granted..., irs publication 526, www irs gov
irs publication 526, www irs gov, irs regulation: The 501(c)(3) organization did not receive the funds from those donors and, therefore, absent some contract, would not be able to give the funds to those individuals. 501(c)(3) organizations may only use their funds for charitable, educational or religious...

Nonprofit Law: divesting funds from a non-profit, harvey mechanic, www irs gov
harvey mechanic, www irs gov, gov ernment: In order to have obtained IRS exemption determination, a 501(c)(3) organization would have had to have the IRS required clauses in its Articles of Incorporation as discussed starting on page 19 at Organizational test at: www.irs.gov/pub/irs-pdf/p557.pdf...

Nonprofit Law: Failure of board to investigate report of theft, harvey mechanic, embezzlement
harvey mechanic, embezzlement, attorney at law: You can report it to the police or district attorney who have jurisdiction over criminals, but as to who could investigate the board s actions, complaints could go to your State s Attorney General s Office as that office generally oversees charities within...

Nonprofit Law: Fiduciary obligation of federation board member, manuscript management, journal manuscript
manuscript management, journal manuscript, fiduciary obligation: See Sec. 108.60. Director conflict of interest. http://pages.citebite.com/o3t6x3y8jpwj Also, Sec. 108.85. Act not exclusive. This Act is not an exclusive statement of the duties and responsibilities of directors and officers. Directors and officers...

Nonprofit Law: Free registration for board members, volunteer board members, youth soccer league
volunteer board members, youth soccer league, harvey mechanic: See http://viewer.zoho.com/docs/lcYOt 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 subject to state wage regulations for employees....

Nonprofit Law: 501 c 6 financial disclosure, assets and liabilities, property assets
Nonprofit Law: 501 c 6 financial disclosure, assets and liabilities, property assets, aslo

Nonprofit Law: fundraiser event - income??, harvey mechanic, neighborhood girl
harvey mechanic, neighborhood girl, 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. I am assuming that by your statement we do not have a charity 501 account that your group is not a 501(c)(3) organization....

Nonprofit Law: Gymnastics Booster Club, harvey mechanic, irs regulations
harvey mechanic, irs regulations, booster organizations: It appears that you may be conspiring with the sporting event company to evade taxes. When people work in exchange for benefits, then the IRS wants that treated like normal employment taxable income. True volunteer firefighters do not receive, or have...

Nonprofit Law: Gymnastics Booster Club, harvey mechanic, discrimination laws
harvey mechanic, discrimination laws, irs: 1. I don t know of any exceptions, either. 2. I do not know of any laws that might protect you. Discrimination laws only protect against certain actions based upon religion, national origin, race and a few other categories. Harvey Mechanic, Attorney...

Nonprofit Law: high school group, sample bylaws, high school alumni
sample bylaws, high school alumni, tax exempt status: If you are already a 501 nonprofit, you may already have bylaws. If not, here s some suggestions: The standard articles for bylaws include: Name, Purpose (or, Object), Members, Officers, Meetings, Executive Board, Committees, Parliamentary Authority, Amendments....

Nonprofit Law: Incorporating in another state, harvey mechanic, washington dc area
harvey mechanic, washington dc area, new york secretary of state: 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 of state law. However, I will inform you that you could incorporate in DC and the New York Secretary...

Nonprofit Law: Large Gift to Relative of Insider, internal revenue code section, children in china
internal revenue code section, children in china, public charity: The distribution, as it is to an employee insider family member would come under the IRS proscription of inurement. As you have just now developed the payment for this one individual, the IRS could particularly scrutinize it. A 501(c)(3) organization...

Nonprofit Law: Mandatory Fundraising Requirement by a 501(c)(3) Christian School, www irs gov, pdf example
www irs gov, pdf example, private benefit: A 501(c)(3) organization may require families to pay an additional $400 in fees, as long as the requirement is not something that indicates a breach of contract. For example, if the school notifies parents, before the time that the school year starts, that...

Nonprofit Law: Non Profit 501C4 Open Meetings, harvey mechanic, open meetings law
harvey mechanic, open meetings law, profit 501c: As for your state law on Open Records and Open Meetings See www.rcfp.org/ogg/index.php?op=browse&state=az (which is slow loading) specifically read at Open Meetings about 1/2 the way down the left column at I.C.4 Nongovernmental bodies receiving...

Nonprofit Law: Non Profit Bylaws, irs publication 557, youth soccer club
irs publication 557, youth soccer club, www irs gov: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations and not to be treated by the IRS as a normal, for-profit business, you would need to establish a charitable trust, incorporate under a state s...

Nonprofit Law: Non Profit donating to For Porfit, income tax deductions, www irs gov
income tax deductions, www irs gov, charitable income tax: A 501(c)(3) organization may accept such a contribution, but then it is considered a pass-through and the 501(c)(3) organization should not give the donor any acknowledgement, such is given when there is a tax-deductible donation. Such donation is not deductible....

Nonprofit Law: Non Profits vote by email, or electronic signature, delaware corporation law, nonstock corporations
delaware corporation law, nonstock corporations, nonprofit corporations: 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 1099 Requirements, form 1099 misc, animal welfare organization
form 1099 misc, animal welfare organization, harvey mechanic: I don t know the content of the alleged oral contract. Oral contracts may be enforceable. www.answers.com/topic/oral-contract-2 But, even if there was an oral arrangment that he would not need to furnish logs or receipts, still the organization would be...

Nonprofit Law: Non-profit IRS regs for membership, irs publication 557, private membership club
irs publication 557, private membership club, irs regs: You are correct if you are referring to a particular subsection of the IRS code. I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You can find that in the articles of incorporation. If it is a 501(c)(3) organization,...

Nonprofit Law: Non profit-Tax exempt organization opens a branch, u s treasury department, form 990 ez
u s treasury department, form 990 ez, harvey mechanic: The federal government has no regulations as to that. As I informed you earlier, this forum is only for questions relating to federal law. You can check with the State of Pennsylvania, but I doubt that they will have any regulations, once you set up your...

Nonprofit Law: Non profit thrift store, harvey mechanic, www irs gov
harvey mechanic, www irs gov, bargain sales: A bargain sale is what you propose to the donors. A bargain sale of property to a qualified organization (a sale or exchange for less than the property s fair market value) is partly a charitable contribution and partly a sale or exchange. That is discussed...

Nonprofit Law: Nonprofit to import crafts?, indigenous crafts, clean drinking water
indigenous crafts, clean drinking water, jewelry bags: A 501(c)(3) organization would need to be charitable in the definition of the IRS, which means that it is assisting a class of poor persons. Reg. 1.501(c)(3)–1(d)(2) expressly provides that relief of the poor, or distressed, or underprivileged is a charitable...

Nonprofit Law: Nonprofit Law/Change of Name and Focus of 501c3, harvey mechanic, ca secretary of state
harvey mechanic, ca secretary of state, 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 your state issues, the Secretary of State will be more than happy to inform you what steps (such as filing the...

Nonprofit Law: Nonprofit org. vp,wont sign org. over to President, even though vp no longer wants part of it!!, parliamentary authority, g robert
parliamentary authority, g robert, horse rescue: Your bylaws should show who can call meetings, and may contain provisions for removing officers. If your group is a nonprofit corporation, find what state law you are incorporated under, and see if that law has provisions for removing officers. If none of...

Nonprofit Law: Do we need a 501?, harvey mechanic, nonprofit corporation law
harvey mechanic, nonprofit corporation law, unincorporated association: You do not need to establish an exempt organization (501(c)(3) organization) unless you want donors to be able to deduct donations. You should not use the word nonprofit , as that may be misrepresentation under your state s law. Generally, the word nonprofit...

Nonprofit Law: Should a newly formed organization apply for tax-exempt status immediately?, irs publication 557, www irs gov
irs publication 557, www irs gov, harvey mechanic: An organization that has a substantial social function does not qualify under section 501(c)(3). 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...

Nonprofit Law: non-profit donations, harvey mechanic, profit donations
harvey mechanic, profit donations, federal grants: Fraud is always illegal when the federal government is involved in a contract with the organization. The fraud would be in the accounting of the organization that indicated that funds were donations when they should be classified as loans. Harvey Mechanic,...

Nonprofit Law: non profit - IRS filing, irs tax exempt status, nonprofit corporation law
irs tax exempt status, nonprofit corporation law, irs 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. Therefore, as to #1... In order to have donations deductible by the donors according to Internal Revenue (IRS)...

Nonprofit Law: non-profit owning half the rights to a movie, irs laws, harvey mechanic
irs laws, harvey mechanic, income tax purposes: Revenue Ruling 98-15 www.unclefed.com/ForTaxProfs/irs-drop/1998/rr-98-15.pdf on the bottom of pdf page 14 and going to page 15 ---Start of Excerpt-- A § 501(c)(3) organization may form and participate in a partnership, including an LLC treated as a partnership...

Nonprofit Law: Does a non-profit school need a non-profit parent's association, charitable contribution deduction, www irs gov
charitable contribution deduction, www irs gov, school treasurer: Either way, but note that parents donations may not be deductible as donations. See www.irs.gov/pub/irs-tege/eotopice96.pdf Conduit Organizations - Charitable Deductibility And Exemption Issues which has examples of donations to schools that might be...

Nonprofit Law: nonprofit Jr. football team, www irs gov, cheer teams
www irs gov, cheer teams, football teams: To qualify for exemption under section 501(c)(3), an organization must be organized exclusively for purposes described in that section. This means, among other things, that the organization’s organizing documents must contain certain provisions. The IRS provides...

Nonprofit Law: nonprofit lending to another, www irs gov, private shareholder
www irs gov, private shareholder, private inurement: 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 selling gifted assets, unrelated business income, gifted assets
unrelated business income, gifted assets, irs publication: 1. First you would need to establish a 501(c)(3) organization as then donations would be deductible. Your educational activities would need to be substantial and for the public, not a small group of persons. Section 1.501(c)(3)-1(d)(3) of the Income...

Nonprofit Law: Personal Fundraisers, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, organization activity: 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 activity is not qualified as a 501(c)(3) organization activity. ---Start of Excerpt-- A charitable organization...

Nonprofit Law: Potential conflicts- splitting 1 nonprofit into 2 similar., harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, startup funds: 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. The similar names and missions are not...

Nonprofit Law: PTA donating to a non 501(c)(3), irs gov, harvey mechanic
irs gov, harvey mechanic, charity fund: The IRS has written in an internal memo in 2005 on page 2, A section 501(c)(3) organization may make grants to another section 501(c)(3) organization [one that is not a private foundation]. There is no geographic or other limitation. www.irs.gov/pub/irs-wd/0504031.pdf...

Nonprofit Law: Reincorporation of nonprofit - New Exemption Application, harvey mechanic, aba section
harvey mechanic, aba section, form 1024: No. Sorry, Ray, I have not seen any change in the IRS published position. You can use a search engine to search Rev. Rul. 67-390 and you will see when the IRS decides to publish a revenue ruling that modifies that particular 1967 Revenue Ruling as...

Nonprofit Law: Reporting Rules for Giving Grants to Individuals, 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: community benefit percentage, unrelated business income, harvey mechanic
unrelated business income, harvey mechanic, www irs gov: The IRS does not have any particular percentage. However, the IRS wants to see that the organization does charitable work commensurate with its size and income. An article posted on the site of The Chronicle of Philanthropy on May 13, 2008 discusses briefly...

Nonprofit Law: Scholarships for Church Members - Fundraising, www irs gov, harvey mechanic
www irs gov, harvey mechanic, publication 557: You need advance approval from the IRS for your method of giving scholarships if you want assurance that your procedure is not going to be called illegal by the IRS. For organizations granting scholarships, Schedule H of the IRS Exemption Application...

Nonprofit Law: Scholarships for Church Members - Fundraising, www irs gov, harvey mechanic
www irs gov, harvey mechanic, publication 557: You need advance approval from the IRS for your method of giving scholarships if you want assurance that your procedure is not going to be called illegal by the IRS. For organizations granting scholarships, Schedule H of the IRS Exemption Application...

Nonprofit Law: Seed Money and Restricted Funds, harvey mechanic, law misrepresentation
harvey mechanic, law misrepresentation, 501c4: 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 particular percentages in the federal law as to your issue. You may want to check your state s regulations....

Nonprofit Law: Single member LLC and IRC 514 rule, federal unemployment tax, harvey mechanic
federal unemployment tax, harvey mechanic, www irs gov: Yes. As the IRS has written: The disregarded entity receives the benefit of its owner’s tax-exempt status, including exemption from federal income tax, federal unemployment tax, and other federal taxes where applicable. www.irs.gov/pub/irs-tege/llc_guide_sheet_instructions.pdf...

Nonprofit Law: Starting a For-Profit, federal tax questions, www irs gov
federal tax questions, www irs gov, public charities: A conflict of interest is present whenever a director has a material personal interest in a proposed contract or transaction to which the 501(c)(3) organization may be a party. Therefore, in the situation you present, there is a conflict of interest,...

Nonprofit Law: sale non profit property without court approval, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, new york not for profit corporation law: 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. Even though this forum is not for such state law issues, I will direct you....

Nonprofit Law: scholorship info, www irs gov, harvey mechanic
www irs gov, harvey mechanic, irs instructions: 1. Providing scholarships to members appears to be an issue for a 501(c)(3) organization. See: www.irs.gov/irm/part7/ch10s03.html#d0e87962 where the IRS has an organization may properly have a purpose to benefit a comparatively small class of beneficiaries,...

Nonprofit Law: Tithes, donations, rent, harvard law school, earthquake relief fund
harvard law school, earthquake relief fund, charitable endowments: 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. Churches and chuch/schools are categorized...

Nonprofit Law: Transerferring program, harvey mechanic, 501 c 6
harvey mechanic, 501 c 6, hostile takeover: The 501(c)(3) organization is controlled by the board of directors and they have the power over that 501(c)(3) organization subject to state law and the articles of incorporation and bylaws. I suggest that you contact the board and see if a majority can agree...

Nonprofit Law: Transferring the 'ownership' of a NY 501c3, harvey mechanic, articles of incorporation
harvey mechanic, articles of incorporation, profit corporation: No one owns a not-for-profit corporation. The board of directors controls the corporation and, therefore, the real issue is control The articles of incorporation and bylaws give the details as to how a member of the board would be replaced or elected and...

Nonprofit Law: Umbrella/Parent Organization, harvey mechanic, irs procedures
harvey mechanic, irs procedures, hotmail: You can send me the exact wording from the Paypal site, but it may be, as on another site, 5. Subordination letter on official letterhead from [the organization] signed by an officer/director/trustee of the parent organization clearly stating that you are...

Nonprofit Law: Unincorporated organization partnership, www irs gov, unincorporated organization
www irs gov, unincorporated organization, unincorporated association: Any bank accounts would be considered by the IRS to be simply an account of your 501(c)(3) organization when they have your EIN on them. Your board and officers would be responsible for the use of the funds and the way that they funds were raised. Sometimes,...

Nonprofit Law: use of non profit corp. funds, irs publication 557, irs gov
irs publication 557, irs gov, noxious weeds: have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Generally, 501(c)(3) organizations are not allowed to issue shares. In any case, the IRS does not regulate the issue...

Nonprofit Law: volunteer profit from sale of merchandise, federal tax questions, www irs gov
federal tax questions, www irs gov, volunteer coach: It appears to be a conflict of interest. A conflict of interest is present whenever a director has a material personal interest in a proposed contract or transaction to which the 501(c)(3) organization may be a party. Therefore, in the situation you...

Nonprofit Law: Work for Benefits - Volunteer?, harvey mechanic, www irs gov
harvey mechanic, www irs gov, volunteer firefighters: See http://viewer.zoho.com/docs/lcYOt 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 subject to state wage regulations for employees....

Nonprofit Law: Youth ice hockey teams- incorporate as non profit or not, nonprofit corporation law, irs service
nonprofit corporation law, irs service, irs regulations: It is not that the coach needs to form a 501(c)(3) organization. He can help, but the majority of the members of the Board should be persons who are no receiving any salary for work for the hockey team. My summary of IRS regulations relating to 501(c)(3)...

Nonprofit Law: 501(c)(3), attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: http://www.irs.gov/app/pub-78/ is the searchable IRS list. If you don t find it there, let me know as they may be a new organization and other rules may apply. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended...

Nonprofit Law: 501 (c)(3) for a Girls Softball Team, irs publication 557, www irs gov
irs publication 557, www irs gov, nonprofit corporation law: A charitable organization needs to be non profit in order to be qualified for 501(c)(3) organization status by the IRS. A team of youth, under the age of 19, certainly may be set up as a 501(c)(3) organization. If you want donors to be able to deduct...

Nonprofit Law: 501c(3) Bylaws, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs approval: Sorry. I did not know that you had already obtained from the IRS 501(c)(3) organization status. Your exemption application did not included such purposes and projected expenditures. Exempt organizations determination letters state that if its mode...

Nonprofit Law: 501c3-19, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, harvey mechanic: See IRS Publication 557 Tax Exempt Status for Your Organization available at: www.irs.gov/pub/irs-pdf/p557.pdf page 54 middle column. The articles of organization (like Articles of Incorporation) would need to include phrases to insure what is required....

Nonprofit Law: 501c3 Board relationships to other nonprofits, public housing authority, federal tax questions
public housing authority, federal tax questions, www irs gov: Yes. The board members of a nonprofit public housing authority may form a 501c3 in which they are also the board members. However, if they contract with the public housing authority they would need to guard against conflicts of interest. A conflict...

Nonprofit Law: 501c3 Elections, public benefit corporations, public benefit corporation
public benefit corporations, public benefit corporation, youth sports program: I am assuming that there is nothing as to the date of the meeting in the Articles of Incorporation. Then the bylaws would control. The June meeting was invalid and the results void. As the bylaws state that there are to be 4 meetings per year, any voting...

Nonprofit Law: 501c3 by state, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, internal revenue service: Ok. If you do not have a good reason to be in California, for exameple that you have some U.S. people who are in California and want to man your new office here, then generally you would find it better to have an Office in Oregon. Oregon is less expensive...

Nonprofit Law: 501c3 not a valid corporation under state law, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: The IRS does not care much about the details of a particular state s corporation code. and whether a corporation is following what, in law, is called corporate formalities . It does care about whether a purported public charity (not a private foundation)...

Nonprofit Law: American Legion Newsletter, business card ads, irs gov
business card ads, irs gov, irs publication: Regarding donations, the sponsors would not be able to deduct the $60 as you are selling space in your newsletter and, therefore, none of that $60 is considered a donation. Therefore, you may not inform them that they may deduct the yearly $60 as a donation....

Nonprofit Law: Booster club for a 501(c)(3), attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, fundraising proceeds: I don t know what you mean for by extension , but I am assuming that the local Civil Air Patrol is a 501(c)(3) organization. Either the booster organization may establish its own entity status and obtain 501(c)(3) organization status from the IRS or that...

Nonprofit Law: Booster Club Membership, 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/9b573 and you may be interested to read that. There you will see that a 501(c)(3) booster organization may not require any payments from a family in order for them...

Nonprofit Law: Booster Club Status, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, school sports team: The IRS considers such an organization to be a regular, for profit entity. 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 22 under Organizations Not Required to...

Nonprofit Law: Booster Club Status, irs publication 557, school sports team
irs publication 557, school sports team, attorney client relationship: You wrote earlier: --- Start of Excerpt --- f a booster club for a public high school sports team, which has never applied for a 501c3 exemption, takes in gross receipts over $5,000 in a calendar year, what does the IRS consider that booster club to be?...

Nonprofit Law: Booster club wants 501c, irs publication 557, athletic booster club
irs publication 557, athletic booster club, www irs gov: It appears that the booster club is not yet incorporated or otherwise organized as a separate entity from the school. If my assumption is not correct, let me know. If it is correct, however, then, if you want donors to be able to deduct donations and not...

Nonprofit Law: cheerleading booster club funds, competitive cheerleading, star cheerleading
competitive cheerleading, star cheerleading, 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. Therefore, I am assuming that you are referring to a 501(c)(3) booster organization. There is no federal law relating...

Nonprofit Law: Christmas Party, 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. There are no federal regulations prohiting a 501(c)(3) organization from sponsoring an event where alcohol is served....

Nonprofit Law: Competitive Taekwondo Team Booster Club, international sports competition, ups airline
international sports competition, ups airline, irs statement: 1. You do not need to foster national or international sports competition or support and develop amateur athletes for national or international competition . My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/9b573...

Nonprofit Law: DBA for 501c3, fictitious business name, attorney client relationship
fictitious business name, attorney client relationship, fictitious business name statement: You may file a fictitious name statement but then your official name does not change. You would then not need to advise the IRS of your use of another name unless they ask specifically. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S....

Nonprofit Law: Designated Gifts, 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: Domestication and 501c3, irs revenue ruling, attorney client relationship
irs revenue ruling, attorney client relationship, irs gov: I am not a member of the Florida Bar. I am a member of the New York Bar. 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...

Nonprofit Law: US donation to 501(c)3 then donated to foreign charity, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: No. The US charity needs to retain discretion as to the use of donated funds. www.irs.gov/pub/irs-tege/eotopice96.pdf is an IRS publication about prohibited conduit arrangements. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This...

Nonprofit Law: Elected public official & 501(c)(3) Board of Directors, 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. In itself, there...

Nonprofit Law: Expantion into states other than state of incorporation, attorney client relationship, new york department of corporations
attorney client relationship, new york department of corporations, harvey mechanic: Your corporation would need to register with the Corporations division of Michigan and New York as a foreign (out-of-state) corporation that wants to do business in the particular state. The Michigan Corporation Division 2 pages with forms and instructions...

Nonprofit Law: fundraisers, harvey mechanic, exact citation
harvey mechanic, exact citation, nullum crimen sine lege: 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 am also assuming that the...

Nonprofit Law: Fundraising Drive "Prizes" Taxable?, form 1099 misc, attorney client relationship
form 1099 misc, attorney client relationship, harvey mechanic: You are welcome. The organziation would complete and file form 1099-Misc for any payments valued over $600. See the second link at www.irs.gov/form1099misc which is the IRS instructions for form 1099-Misc. Especially note, in the first column of page...

Nonprofit Law: Gift to resigning pastor, harvey mechanic, private inurement
harvey mechanic, private inurement, irs regulations: I suggest that the congregation may get together a fund for the retiring pastor. It could purchase the car from the church at a fair market value and then give it to the pastor and that would not be considered taxable to him and it would be allowable. ...

Nonprofit Law: Gym Owner Influence Over Gymnastics Boosters Group, gym owners, national competitions
gym owners, national competitions, gym owner: www.irs.gov/charities/charitable/article/0,,id=123297,00.html has: ---Start of Excerpt-- A section 501(c)(3) organization must not be organized or operated for the benefit of private interests, such as the creator or the creator s family, shareholders...

Nonprofit Law: Health Insurance Benefits for a Volunteer, health insurance benefits, www irs gov
health insurance benefits, www irs gov, harvey mechanic: A church certainly may give you fringe benefits if the amount of the benefit is no more than the value of your services to the organzation. The IRS does not allow 501(c)(3) organizations to give someone more compensation than is reasonable. Starting...

Nonprofit Law: High School Band Charity, winter color guard, instrumental music program
winter color guard, instrumental music program, www irs gov: A charity has a right not to accept earmarked donations and has right to accept donations only on a certain basis. However, such donations may not then be deductible. See www.irs.gov/pub/irs-tege/eotopice96.pdf Conduit Organizations - Charitable Deductibility...

Nonprofit Law: In-Kind Gift Valuations, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: See the IRS Publication Charitable Donations --- Substantiation and Disclosure Requirements www.irs.gov/pub/irs-pdf/p1771.pdf Note on page 5 the IRS informs the 501(c)(3) organizations that the acknowledgment of the donation would have a description...

Nonprofit Law: Membership dues and tax deductibility, irs publication 526, www irs gov
irs publication 526, www irs gov, harvey mechanic: You are welcome www.irs.gov/newsroom/article/0,,id=240239,00.html has a link to the list of the organizations that had their 501(c)(3) status revoked recently. The link is www.irs.gov/charities/article/0,,id=240099,00.html and the article gives procedures...

Nonprofit Law: non-profit, youth sports club, attorney client relationship
youth sports club, attorney client relationship, harvey mechanic: What is going to happen to the net profits (of around $20,000) annually? After you give me that information I will reply further. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended to be a general statement of...

Nonprofit Law: non-profit fundraising for other cause, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, purpose clauses: You are asking if it is ok to use half the funds for us . I don t know who you are referring to as us . Let me know and after you give me that information I will reply further. However, as for the purposes of a 501(c)(3) organization, generally the Articles...

Nonprofit Law: Non-profit organization advertisitn, irs publication 557, attorney client relationship
irs publication 557, attorney client relationship, irs gov: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You can find that in the articles of incorporation. If it is a 501(c)(3) organization, I would need to know if it is a private foundation. After you reply I will...

Nonprofit Law: office/ condo, harvey mechanic, office condo
harvey mechanic, office condo, 501 c 3: Yes, I would be willing to represent the 501(c)(3) organization as to the acquisition. If you want to inquire about hiring me for such work, please contact me directly to the email address below as I do not put fee discussion on this public board. Thank...

Nonprofit Law: Paid Holidays for Non Profit Organizations?, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, fair labor standards act flsa: Boards of Directors decide generally what the compensation package is for employees and that should include the policies as to paid days off and time and a half for working on days that are not state or national holidays. The policy is generally not included...

Nonprofit Law: Payments to officers, www irs gov, harvey mechanic
www irs gov, harvey mechanic, volunteer officers: See www.irs.gov/charities/article/0,,id=131083,00.html --- Start of Excerpt --- An exempt organization (EO) may have officers such as a president, vice-president, secretary, treasurer, executive director, and CEO (chief executive officer). As used here,...

Nonprofit Law: Permitted use of the word "foundation", secretary of state of massachusetts, word foundation
secretary of state of massachusetts, word foundation, massachusetts corporation: 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 regulation stating that only an IRS appproved 501(c)(3) organization may have, in its name, the...

Nonprofit Law: not profit not following bylaw, what can we do?, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: 1. If you are a Board member you may have standing to deal with the matter. Let me know if you are such a voting Board member (or if you know someone who is and who is ready to act). After you give me that information I will reply further. Otherwise, you...

Nonprofit Law: Refunds for Band Fees, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, irs regulations: No. Many 501(c)(3) organizations, like universities, refund fees. Universities publish their refund schedules and, most of them do not grant any refunds on tuition paid even if a student drops out only after the first few weeks of a term. For example see...

Nonprofit Law: Return of Donated Items, boy scout memorabilia, irs publication 17
boy scout memorabilia, irs publication 17, 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. You are asking about Pennsylvania law. I can inform you though, that I know of no state that has any law prohibiting...

Nonprofit Law: sale of a non-profif corp., attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, infancy stage: Generally the state law requires nonprofit corporations to have clauses in their Articles of Incorporation precluding sale. You can send me a copy of the Articles of Incorporation as an attachment to my email address below and I will look at the document...

Nonprofit Law: Sale of a Property, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, public charity: 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 that require permission for a 501(c)(3) public charity to sell its real property...

Nonprofit Law: School Choir Accounts, even uniforms, choir trip
even uniforms, choir trip, fundraising opportunities: You are welcome. I have done this for a long time and many of the questions are similar and, therefore, I have on my computer excerpts that apply. Yes, the 501(c)(3) organization status is very restrictive, as donors are able to deduct donations. If,...

Nonprofit Law: After School Program, fair labor act, program question
fair labor act, program question, 501 c 3 organizations: You are welcome and thank you for that generous feedback. Housing is considered generally as a fringe benefit when given to employess. In the IRS publication relating to fringe benefits at www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf they have...

Nonprofit Law: Where to start and are we a 501 c 7?, www irs gov, 501 c 3 organizations
www irs gov, 501 c 3 organizations, artist guild: 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 some information. It appears that you are referring to a 501(c)(7) recreational or social...

Nonprofit Law: Unincorporated Association, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, employer identification 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. You are not referring to such an organization. However, I will inform you that you could form the unincorporated...

Nonprofit Law: USING PARENTS 501C-3 IN ANOTHER STATE, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, mr mechanic: Every state requires a registration, similar to filing Articles of Incorporation, which is usually called for a foreign corporation and that applies to out of state corporations that want to do business in that state. You would need to be registered...

Nonprofit Law: Volunteer in a church/religious organization, fair labor act, fair labor standards act flsa
fair labor act, fair labor standards act flsa, volunteer position: You are correct as long as the sexton is not an independent contractor. See http://viewer.zoho.com/docs/lcYOt which is a newspaper story describing a situation when the State determined that organizations that promised volunteers gifts over the value...

Nonprofit Law: Volunteer Compensation, compensation question, judy walsh
compensation question, judy walsh, partial scholarships: I will clarify. If you declare the compensation to Directors and coaches as compensation then there is no jeopardy to the exempt status of the organization. The jeopardy would be if you do not properly report the compensation and then the IRS could interpret...

Nonprofit Law: 501 c 3 - can we require member to be part of school band program?, school music program, public school music
school music program, public school music, usdoj gov: As to federal law, a 501(c)(3) organization may pass regulations, subject to any of the students earlier agreements with the organization, that students must be part of a school program to join the 501(c)(3) organization. I did not indicate that it might...

Nonprofit Law: 501 c 7 dissolution, attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: The IRS writes about 501(c)(7) organizations at www.irs.gov/irm/part7/irm_07-025-007.html Specifically see http://www.irs.gov/irm/part7/irm_07-025-007.html#d0e345 Distribution to Members 1. Liquidating distributions to club members after sale of club assets...

Nonprofit Law: 501c3 and fraternities, irs publication 557, www irs gov
irs publication 557, www irs gov, harvey mechanic: Correct. There are service fraternities that would do charitable work and it would then qualify as a 501(c)(3) organization. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended to be a general statement of law,...

Nonprofit Law: Aid organization expenses, mississippi flood, www irs gov
mississippi flood, www irs gov, irs rule: There is no limitation by the IRS specifically as to the source of the funds for your necessary expenses. They may, therefore, come from donations. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended to be a general...

Nonprofit Law: bending all the rules (part 2), attorney client relationship, www irs gov
attorney client relationship, www irs gov, harvey mechanic: You are welcome. If you are a voting member of the organization then you would have certain rights as to notifications about the board elections. Otherwise, you would not, absent some agreement between you and the 501(c)(3) organization, have any rights....

Nonprofit Law: bending all the rules, irs publication 557, public charity status
irs publication 557, public charity status, 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. If that is not correct, let me know...

Nonprofit Law: board member being hired as an employee, www irs gov, incorporation of a company
www irs gov, incorporation of a company, homeowners associations: 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: Church Charitable 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: Congregation Christmas Gift to Pastor, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: That is such a minor use of church resources that the IRS would not be concerned as that would insubstantial . That word insubstantial is used in reference to a related matter - inurement. Private benefit is discussed by the IRS at www.irs.gov/pub/irs-tege/eotopicc90.pdf...

Nonprofit Law: corporation with 501c3 as part of its portfolio?, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, 501c3 organization: Usually, when the for-profit activities would give more than 15% of the total gross income, the for-profit would be incorporated separately with the 501(c)(3) organization owning all of the shares of the for-profit. Harvey Mechanic, Attorney at Law - ...

Nonprofit Law: Designated or Restricted Donations, flood relief, guidestar
flood relief, guidestar, 501 c 3 organizations: Charities are required to honor donor designations if the charity accepts the funding with the understand that the funds will be used for the particular purposes designated. However, Generally, donors give up any authority over donated items and funds,...

Nonprofit Law: distribution of funds, harvey mechanic, public charity
harvey mechanic, public charity, private foundation: Are you referring to a public charity? If not, are you referring to a private foundation? If you don t know difference, let me know and I will respond anyway. But, generally, the only type of 501(c)(3) organization that is required to distribute funds is...

Nonprofit Law: Employee Christmas party, www irs gov, private shareholder
www irs gov, private shareholder, 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: IRS Form 990, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: In calculating the public support you would need to use the 2% rule which the IRS discusses starting in the first column of page 33 of that Publication 557 under Support from the general public . www.irs.gov/pub/irs-pdf/p557.pdf That is to insure that...

Nonprofit Law: Who can be a non-profit Booster Club?, irs publication 557, www irs gov
irs publication 557, www irs gov, nonprofit corporation law: Yes, you could set up a 501(c)(3) booster organization. Make sure that the profit entity does not have much influence, though. See www.irs.gov/pub/irs-tege/eotopica93.pdf starting on pages 11 Private Facility Owners which discusses prohibited private...

Nonprofit Law: Non Profit Hiring, attorney client relationship, college radio station
attorney client relationship, college radio station, 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 regulations prohibiting a nonprofit college radio station firing non active students.z ...

Nonprofit Law: Non-profit spending, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, charitable beneficiaries: 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. Those types of organizations may not...

Nonprofit Law: Non-profit youth athletic clubs, public charity status, www irs gov
public charity status, www irs gov, participant representation: You are welcome. As that 501(c)(3) organization has received an IRS exemption determination 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: Property Valuation, tax form 990, financial accounting standards board fasb
tax form 990, financial accounting standards board fasb, financial accounting standards board: The Instructions for Form 990 are at www.irs.gov/pub/irs-pdf/i990.pdf and on the right column of page 43 the IRS explains --- Start of Excerpt --- Line 10a. Land, buildings, and equipment. Enter the cost or other basis of all land, building, and equipment...

Nonprofit Law: Pure non-profit, versus for-profit with non-profit affiliate, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, mr mechanic: Generally the IRS does not grant exemption to businesses that sell products. They only grant 501(c)(3) organization status to organization s that are selling items that are part of a charitable, educational or religious mission, such as a church sellling...

Nonprofit Law: qualification for member of non profit board, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, nonprofit corporation law: 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: Refunding a Donation, irs publication 17, attorney client relationship
irs publication 17, attorney client relationship, harvey mechanic: A 501(c)(3) organization may refund a donation. For refunds of donations where a deduction was taken in a previous year, put that amount on line 21 of your form 1040 as stated in IRS publication 17 on page 84 of www.irs.gov/pub/irs-pdf/p17.pdf -- Recoveries...

Nonprofit Law: Reimbursement for Internet access, fringe benefit, irs publication
fringe benefit, irs publication, fringe benefits: I am assuming that the officer is using the internet at home not only for the 501(c)(3) organization, but also for the private use of the officer or other residents there. Section 61 of the Internal Revenue Code (Code) defines gross income as all income,...

Nonprofit Law: Requirements on Bids for 501(c)(3) building an animal shelter, www irs gov, irs regulations
www irs gov, irs regulations, inurement: 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 IRS regulations as to having bids required. I have also not found any states that require its nonprofit...

Nonprofit Law: Scholarship fund, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: You would only have to set up a foundation which is approved by the IRS if you want to able to claim deductions as charitable donations. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com P.S. This response is intended to be a general statement...

Nonprofit Law: Scholarships and non profits, catholic newman center, www irs gov
catholic newman center, www irs gov, harvey mechanic: You need advance approval from the IRS for your method of giving scholarships if you want assurance that your procedure is not going to be called illegal by the IRS. For organizations granting scholarships, Schedule H of the IRS Exemption Application...

Nonprofit Law: Selling A Church, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: http://law.justia.com/illinois/codes/chapter65/2280.html has the Illinois General Not For Profit Corporation Act Specifically it provides that the Articles of Incorporation may have a clause (iii) Limiting, enlarging or denying the right of the members...

Nonprofit Law: Stipended Regulations, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, fair labor standards act flsa: 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 an hour/wage issue. Even though this forum is not an exemption issue I will direct you to the article about...

Nonprofit Law: Supporting Organization Type, www irs gov, sister relationship
www irs gov, sister relationship, public corporations: The term supporting organization (1,2, or 3) is a term that refers to particular type of exempt organizations. 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...

Nonprofit Law: 501(c)(3), attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, taking care of dogs: If the corporation does not have voting members and only the members of the organization s Board have a vote, then what you need to do is convince the present Board to vote in you and your associates as the Board members. As in taking over any business...

Nonprofit Law: 501(c)(3) distribution of funds, attorney client relationship, irs gov
attorney client relationship, irs gov, harvey mechanic: When a 501(c)(3) organization determines grants based upon labor then it is opening a can of worms. In 2011 the IRS revoked exemption retroactively for an organization that only was engaged in contract labor in which the benefits of the labor went to their...

Nonprofit Law: 501(c)(3) Donating to a 501(c)(4), social welfare organization, irs guidelines
social welfare organization, irs guidelines, community service projects: A 501(c)(3) organization may make a grant to even a for-profit entity if that for-profit entity is going to engaged solely to use the funds for a charitable purpose. You mentioned specifically, A few years ago a YPO Foundation was created and it has 501(c)(3)...

Nonprofit Law: Can a 501(c)(3) also have a Subchapter S Corp, subchapter s corp, attorney client relationship
subchapter s corp, attorney client relationship, harvey mechanic: A 501(c)(3) organization may own or have partial ownership of a for-profit entity, but then it may not use its exempt status to benefit the for-profit entity. Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv...

Nonprofit Law: 501c3 organization regarding donations used for upgrading personal property of the owner of the non profit, www irs gov, private shareholder
www irs gov, private shareholder, internal revenue code section: 1. 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: 50th class reunion responsibility, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: First I would need to know what entity it was, in other words a corporation or unincorporated association and then what organizational documents you had, like Articles of Incorporation or Bylaws or Articles of Association. After you give me that information...

Nonprofit Law: Aggressive approaches when soliciting for non-profits, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, charitable solicitation: 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 would also need...

Nonprofit Law: Amend by laws of NY Not for Profit, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, new york not for profit corporation law: §602 provides: --- Start of Excerpt --- (c) Any by-law adopted by the board may be amended or repealed by the members and, unless otherwise provided in the certificate of incorporation or the by-laws adopted by the members, any by-law adopted by the members...

Nonprofit Law: board member term limit, public charity status, www irs gov
public charity status, www irs gov, fifth circuit court of appeals: 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 wants at least 3 unrelated directors for public charities and, in any case, the board should not be controlled...

Nonprofit Law: Board Members and Conflict of Interest, youth sports association, federal tax questions
youth sports association, federal tax questions, 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: Booster Organization Dues, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, hotmail: I hope that I did not put in one of my answers that a 501(c)(3) organization can not enforce an agreement by a member to pay dues. If you did read that in one of my posts, please give me the URL so that I can correct it. Your understanding is correct. ...

Nonprofit Law: How can I buy a non-profit school?, public benefit corporation, attorney client relationship
public benefit corporation, attorney client relationship, special education school: 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, however, give you some information. From what you wrote, the school is a California Nonprofit Public Benefit...

Nonprofit Law: cash on hand, technical advice memorandum, irs national office
technical advice memorandum, irs national office, www irs gov: It appears that you are referencing 501(c)(19) organization which the IRS discusses at http://www.irs.gov/irm/part7/irm_07-025-019.html and in the first paragraph, we see, IRC 501(c)(19) exempts from federal income tax a post or organization of past or present...

Nonprofit Law: Catholic church employees compensation disclosure, financial disclosure requirements, public disclosure requirements
financial disclosure requirements, public disclosure requirements, attorney client relationship: 1. Complaints as to excessive compensation could go to your State s Attorney General s Office as that office generally oversees nonprofit organizations within the state. Complaints to the IRS regarding Exempt Organizations and excess are discussed at ...

Nonprofit Law: Church daycare & minimum wage, fair labor act, attorney client relationship
fair labor 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 an labor law issue that applies to both for-profits and exempt organizations. Even though this forum...

Nonprofit Law: Church to Gift Car to Needy Family, irs gov, charitable foundations
irs gov, charitable foundations, internal revenue code: 1. See www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is pdf page 7 of that pdf file) as to the discussion of Charitable Class --start of excerpt --- The group of individuals that may properly receive assistance from a charitable organization...

Nonprofit Law: Conflict of interest, powerful control, immense pressure
powerful control, immense pressure, conflict of interest: One board seat by a for-profit gym is allowed as long as the gym or the insiders of that for-profit gym do not have a majority of the seats on the Board. However, interested directors generally would need to recuse themselves when there are votes on the Board...

Nonprofit Law: courtesy listing on a dog rescue organization, 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. Generally for regulations relatihng to such 501(c)(3) organizations, see IRS Publication 557 Tax Exempt Status for...

Nonprofit Law: Definition of Employment, student loan forgiveness, loan forgiveness program
student loan forgiveness, loan forgiveness program, federal tax exemption: I have in my profile that this free forum is only for general questions relating to IRS federal tax exemption issues of 501(c)(3) organizations. You are asking about a definition for employment and that is not relating to an exemption issue of such an organization....

Nonprofit Law: disbursing donations upon dissolution, choir activities, feminine spirit
choir activities, feminine spirit, personal feelings: 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: Dissolution of Church and Assets, 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 mostly controlled by state law and states may differ somewhat with how they would treat such issues....

Nonprofit Law: Form 1023, Dchedule D, public charity status, attorney client relationship
public charity status, attorney client relationship, adult education program: The instructions to Form 1023 is at: www.irs.gov/pub/irs-pdf/i1023.pdf and, specifically, the instructions for Schedule D start on page 19. That supporting organization status is for those that are filing Form 1023 and do not otherwise qualify for public...

Nonprofit Law: Fundraising for a 501(c)3 youth soccer team, youth soccer program, youth soccer team
youth soccer program, youth soccer team, irs regulations: I do not understand whether the 501(c)(3) organization has more than one team, but it appears that there is only one team. Therefore, any funds raised should only go to the benefit of the team, not to individuals. You can certainly keep track of how much each...

Nonprofit Law: IRS revocation of tax exempt status, harvey mechanic, www irs gov
harvey mechanic, www irs gov, mr mechanic: www.irs.gov/newsroom/article/0,,id=240239,00.html has a link to the list of the organizations that had their 501(c)(3) status revoked recently. The link is www.irs.gov/charities/article/0,,id=240099,00.html and the article gives procedures for the $100...

Nonprofit Law: LLC and 501 c 3, www irs gov, internal revenue code section
www irs gov, internal revenue code section, tax id 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 issues are controlled by state law and states may differ somewhat with how they would treat such issues. Even...

Nonprofit Law: loss of work, 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: love offering, irs publication 517, attorney client relationship
irs publication 517, attorney client relationship, harvey mechanic: 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 As you explained the you accept...

Nonprofit Law: Non-Profit Co-op, mr mechanic, private inurement
mr mechanic, private inurement, digital marketplace: You can certainly propose your compensation arrangement to the IRS in your 1023 exemption application and write that, if they do not approve it, you would not use such an arragement. Rev. Rul. 69-383, 1969-2 C.B. 113, provides that a fixed percentage compensation...

Nonprofit Law: non-profit organizations with same board, piercing the corporate veil, attorney client relationship
piercing the corporate veil, attorney client relationship, harvey mechanic: Having similar of even identical boards and sharing facilities are not a problem as long as the organizations maintain separate corporate records. I don t know what you mean by transfer finances , but if you are referring to commingling of funds, then that...

Nonprofit Law: Non profit and for profit, 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 not private foundations. Therefore, I am assuming that you are referring to such a 501(c)(3) organization....

Nonprofit Law: Non Profit rental, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, charitable beneficiaries: 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. It is correct that the IRS does not allow...

Nonprofit Law: Non Profit vs. For Profit, international adoptions, better business bureau
international adoptions, better business bureau, exempt purpose: It appears that you expect that the gross income from the t-shirt sales, even when considering only those t-shirts that do not have prominent messages as to the orphans, would be at least 15% of the gross income that you expect that your organization would...

Nonprofit Law: Nonprofit raising money to restore a building, 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. Such an organization may not use funds...

Nonprofit Law: Nonprofit under LLC, nonprofit corporation law, irs gov
nonprofit corporation law, irs gov, private shareholders: 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. If you want donors to be able to deduct...

Nonprofit Law: Private Non Profit Building, general contractors license, attorney client relationship
general contractors license, attorney client relationship, harvey mechanic: Federal grants sometimes have restrictions so first I would need to read the text of the contract as to the nonprofit contracting with its own employee, like you. Undoubtedly the federal grant would require contractors to be licensed in the state where the...

Nonprofit Law: proxies, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, proxies: Threaten the Board to follow the law or else you could then file an action in court for an order. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com Member of New York Bar P.S. This response is intended to be a general statement of law, should...

Nonprofit Law: Receiving donations in exchange for goods, irs publication 526, www irs gov
irs publication 526, www irs gov, two pennies: 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 federal law considers that if you require a minimum donation for goods or services, that minimum amount is treated...

Nonprofit Law: Refund of Donation, 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: Reporting Sexual Fondling of Minor at Youth Event, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, child abuse and neglect: 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: Requested Contributions, Some Do Not, Ways to Raising Funds For Those Who Do Not, irs regulations, public charities
irs regulations, public charities, booster organizations: A 501(c)(3) booster organization does not, by definition, produce activities, but, instead support activities of others. Therefore, it can not require people to pay fees for things involved with the activity, such as competition fees as only the entity...

Nonprofit Law: Resident vs Nonresident Rates, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, charitable beneficiaries: 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: Services not yet rendered, 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 not a federal exemption issue and is controlled by state law and states may differ somewhat with how they...

Nonprofit Law: stipend vs wages, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, www irs gov: The words stipend is a vague work are is not, therefore, used by the IRS for tax purposes. The word wages refers to monetary compensation given to employees. The words used, however, in a contractor agreement are not relevant for determining whether...

Nonprofit Law: stolen donations or ethics?, silent auction, white china
silent auction, white china, hand pieces: Oh, now you inform me that the property was unloaded at a member s house. I had thought earlier that the member was at the location of the 501(c)(3) organization and accepted it there. Sorry. But, but unless the sales receipts went into their pockets or...

Nonprofit Law: "Teams" Within Band Organization (For Funds Distribution), junior varsity team, attorney client relationship
junior varsity team, attorney client relationship, harvey mechanic: Separate accounts are allowed, but only for funds that come into that account from family dues or other non-deductible gifts. As to your specific question, I do not know of any IRS or court decisions that deal with sections of a team or band. My opinion...

Nonprofit Law: What type of non-profit to form?, charitable trusts, articles of incorporation
charitable trusts, articles of incorporation, 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 to the Federal government, 501(c)(3) organizations, whether corporations or trusts have the same reporting requirements....

Nonprofit Law: 501(c)(3) Making a Loan, harvey mechanic, www irs gov
harvey mechanic, www irs gov, irs guidelines: I am assuming that the holding company is a for-profit entity and that the 501(c)(3) organization owns all of the shares of the holding company. There are no IRS regulations that prohibit 501(c)(3) organizations from giving loans to wholly owned subsidiaries...

Nonprofit Law: 501(c)3 - Softball Organization, irs gov, harvey mechanic
irs gov, harvey mechanic, supreme court case: By benefit, the IRS also refers to items that the family would otherwise need to pay for. If a family would otherwise need to pay for registration fees or uniforms or tournament fees, then payments are not donations as they are required. For example tuition...

Nonprofit Law: 501(c)(3) Status and Lease of Real Estate, harvey mechanic, income tax purposes
harvey mechanic, income tax purposes, market rents: You wrote that the country is Hong Kong. I only address issues as to U.S. organizations acting in the United States. In the United States what you propose is possible and the answer to all three questions is yes. See www.unclefed.com/ForTaxProfs/irs-drop/1998/rr-98-15.pdf...

Nonprofit Law: 501 (c) 3 sub-committees, harvey mechanic, board resolutions
harvey mechanic, board resolutions, legal boundaries: A 501(c)(3) organization may have many bank accounts, but the board of directors is responsible for all of them, even if there are different persons authorized to sign on some of the account. The signers are authorized by separate board resolutions for each...

Nonprofit Law: Can a 501 c 3 support a foreign missionary?, irs gov, harvey mechanic
irs gov, harvey mechanic, revenue authorities: See www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and international activities of U.S. exempt organizations. Note, particularly on page 2 --- Start of Excerpt --- A section 501(c)(3) organization will not jeopardize...

Nonprofit Law: 501(c)(3) theatre and a church, exact citation, nullum crimen sine lege
exact citation, nullum crimen sine lege, tax exempt organizations: 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 do an act to provide the exact citation. Merriam-Webster s Dictionary...

Nonprofit Law: 501(c)(7) relationship with 501(c)(3), irs publication 526, irs gov
irs publication 526, irs gov, supreme court case: It is not correct that if a 501(c)(7) organization gives to donors that the donation will go towards under writing expenses with proceeds from the event going to the 501(c)(3) that they can still take the deduction. As to charitable deductions, see the...

Nonprofit Law: 501 c3 Board of Directors (dog rescue), harvey mechanic, new york not for profit corporation law
harvey mechanic, new york not for profit corporation law, profit corporation: I am assuming that you are referring to a corporation that was incorporated under the New York Not-for-Profit Corporation Law. That law revised 2010 is available at: http://law.justia.com/newyork/codes/2010/npc Specifically note that section 713 has ...

Nonprofit Law: 501(c3) membership requirements, exempt charitable organizations, nonprofit corporations
exempt charitable organizations, nonprofit corporations, pennsylvania law: First, your In Penna combined with 501(c3) question suggests you might not realize that the 501(c)(3) provisions of federal law for tax exempt charitable organizations is separate from state laws for nonprofit corporations. I don t know what Pennsylvania...

Nonprofit Law: 501c3, unrelated business income, www irs gov
unrelated business income, www irs gov, harvey mechanic: The IRS may have a problem with a 501(c)(3) organization allowing individuals to engage in sales activities that, even in part, go for their own, private benefit. See www.irs.gov/pub/irs-wd/02-0041.pdf on the top of page 2 about Scouts collecting for their...

Nonprofit Law: 501c3, harvey mechanic, www irs gov
harvey mechanic, www irs gov, better business bureau: In the leading case elucidating the purposes considered exempt under Sec. 501(c)(3), the Supreme Court in Better Business Bureau v. U.S., 326 U.S. 279, 283, 66 S.Ct. 112, 114, 90 L.Ed. 67 (1945), stated, he presence of a single [non-exempt] purpose,...

Nonprofit Law: 501c3 vs. 1023, volunteer fire department, harvey mechanic
volunteer fire department, harvey mechanic, 501c3 status: The Form 1023 is an application that is filed with the IRS. After the IRS reviews the application they decide if they are going to treat the organization as exempt under section 501(c)(3). Have you filed the 1023 yet? Harvey Mechanic, Attorney at Law...

Nonprofit Law: Ability to reapply after loss of status, irs publication 557, irs gov
irs publication 557, irs gov, harvey mechanic: If you received a letter from the IRS informing the organization that exemption was revoked, your organization may reapply for exemption, but the IRS determination will not be retroactive to previous periods (it will only pertain from the date the application...

Nonprofit Law: Agenda, public library board, nonprofit corporation law
public library board, nonprofit corporation law, sunshine laws: There is no universal answer to this question. The relevant rules to your situation are probably the organization s bylaws (including constitution if they have both a constitution and bylaws). Possibly articles of incorporation contain relevant provisions,...

Nonprofit Law: Allocation of funds raised by a 501(c)(3), harvey mechanic, www irs gov
harvey mechanic, www irs gov, exempt purpose: See www.irs.gov/pub/irs-wd/1041048.pdf on pdf page 4 The IRS will not grant 501(c)(3) organization status if an organization has a substantial non-exempt purpose. The regulations that the IRS cite to so not specifically give a percentage limitation,...

Nonprofit Law: Amending Officer Elections relevant to Fiscal Year, parent booster organization, irs law
parent booster organization, irs law, nonprofit corporation law: I m actually more an expert on Robert s Rules of Order than on IRS law or state nonprofit corporation law, but I think you are likely okay in changing officer elections and terms in bylaws to suit your needs. It may be more difficult to change your fiscal...

Nonprofit Law: Asking Questions of an Officer, harvey mechanic, nonprofit corporation law
harvey mechanic, nonprofit corporation law, pennsylvania statutes: 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 federal rules that prohibit your contact with the other officer. Your issue is controlled by state law...

Nonprofit Law: Athletic Booster Club in Texas, irs publication 557, athletic booster club
irs publication 557, athletic booster club, harvey mechanic: You would request the Secretary of the group to let you look at the organizational document. If it was incorporated it would be available online through the State. You can search Texas Corporations for $1 www.sos.state.tx.us/corp/sosda/index.shtml ...

Nonprofit Law: advertising to public, www irs gov, harvey mechanic
www irs gov, harvey mechanic, better business bureau: 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 you are referring to a 501(c)(8) fraternal beneficiary society about which the IRS writes at www.irs.gov/irm/part7/irm_07-025-008.html...

Nonprofit Law: amending church by-laws, nonprofit corporation law, ronr
nonprofit corporation law, ronr, robert s rules of order: To amend (change) your bylaws, you need to follow the procedure for amending your bylaws, usually found in an article of your bylaws entitled Amendments. Based on what you were told, I d expect to find the three meetings etc requirement in such an article,...

Nonprofit Law: Band Boosters, www irs gov, harvey mechanic
www irs gov, harvey mechanic, gov pub: See page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf starting on the middle of 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...

Nonprofit Law: Board responsibility re: past excess compensation, excess benefit transactions, irs gov
excess benefit transactions, irs gov, harvey mechanic: Intermediate Sanctions - Excess Benefit Transactions www.irs.gov/charities/charitable/article/0,,id=123303,00.html The Regulations are available at: www.access.gpo.gov/nara/cfr/waisidx_05/26cfr53_05.html specifically down at §53.4958-1 as to Taxes on...

Nonprofit Law: Boardmember Reimbursement, irs gov, harvey mechanic
irs gov, harvey mechanic, irs publication: You are correct. The board member would not be giving the $5000 donation except for something else happening. Therefore, it is not a voluntary donation of $5000 and he would be getting something tangible in return (by agreement). Harvey Mechanic, Attorney...

Nonprofit Law: Booster Club hotel expenses, www irs gov, harvey mechanic
www irs gov, harvey mechanic, 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. Therefore, I am assuming that you are referring to a 501(c)(3) organization. The IRS does not have any specific regulations...

Nonprofit Law: Booster Type (A or B), harvey mechanic, irs regulations
harvey mechanic, irs regulations, irs code: 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. Even though this forum is not for such state law issues, I will direct you the...

Nonprofit Law: board member wages, harvey mechanic, www irs gov
harvey mechanic, www irs gov, member wages: Yes that is allowed for 501(c)(3) organizations that are public charities. However, 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...

Nonprofit Law: booster club questions, unrelated business income, irs gov
unrelated business income, irs gov, allstar gym: You and your child can sell candles but then the profits are taxable. However, the: has written: ---Start of Excerpt-- You have asked whether issuing a Form 1099 for each Scout receiving such benefits would negate the private benefit question. In this...

Nonprofit Law: booster clubs, harvey mechanic, irs regulations
harvey mechanic, irs regulations, federal income taxes: I don t know what you mean by a tax benefit for the booster organization. I was assuming, from what you wrote, that the booster organization has received a determination letter from the IRS that the organization is exempt under section 501(c)(3), and, therefore,...

Nonprofit Law: breach of ethics, google search results, harvey mechanic
google search results, harvey mechanic, google: 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 about ethics, not law. I will inform you, however, that I can not see why using an outside expert...

Nonprofit Law: business in church, harvey mechanic, www irs gov
harvey mechanic, www irs gov, congregation size: A 501(c)(3) organization may not give free rent to a for-profit business unless the space is given to a person chosen on the basis of need from the community. Many Churches and other 501(c)(3) organizations have what they call a Compassion Fund or Benevolence...

Nonprofit Law: Cheer booster club, harvey mechanic, financial difficulties
harvey mechanic, financial difficulties, booster club: Yes, a 501(c)(3) organization may give a grant of funds for a cheerleader who is having financial difficulties paying her monthly membership. I am assuming that the particular cheerleader is not raising the funds. Harvey Mechanic, Attorney at Law - ...

Nonprofit Law: Church below market loans to individuals, www irs gov, harvey mechanic
www irs gov, harvey mechanic, private shareholder: 1. No, the church members is not an insider solely by being a member. 2. See www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is pdf page 7 of that pdf file) as to the discussion of Charitable Class --start of excerpt --- The group...

Nonprofit Law: Churches renting their space out to another businessq, property tax exemptions, harvey mechanic
property tax exemptions, harvey mechanic, zumba fitness: 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 may rent out space but would need to charge at least market rates. Sometimes local real property tax exemptions...

Nonprofit Law: changing MD non-profit's name, md dept of taxation, www irs gov
md dept of taxation, www irs gov, md dept of assessments and taxation: I am assuming the nonprofit organization is a corporation. It will first need to amend its articles of incorporation. 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....

Nonprofit Law: charitable limited partnerships, irs publication 557, irs gov
irs publication 557, irs gov, harvey mechanic: This appears to be a duplicate, but I will answer again. It is good that the organization is a 501(c)(3) that is not a private foundation. I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues...

Nonprofit Law: checks to written to individuals or corporations by a 501(C)(3), disaster relief fund, www irs gov
disaster relief fund, www irs gov, harvey mechanic: Yes, but they need to follow IRS regulations. See page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf starting on the middle of pdf under the heading Charitable Class --start of excerpt --- The group of individuals that may properly receive assistance from...

Nonprofit Law: company held fundraiser - no donation, harvey mechanic, small claims court
harvey mechanic, small claims court, 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: creating a NPO-sub under an existing S-corp, litmus test that, camp scholarships
litmus test that, camp scholarships, adult leagues: 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: Day Care within a Church, harvey mechanic, property tax exemption
harvey mechanic, property tax exemption, child care providers: 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 the child care providers pay at least market rent then there is no problem as to the church s federal exemption....

Nonprofit Law: Designated Giving, harvey mechanic, sundown time
harvey mechanic, sundown time, charitable gift: If the organization adds a term to the written designation agreement as to the 5 year period, then it would be legal if agreed to by the donor. Otherwise, generally, under state law the organization could not make such a modification. However, even if the...

Nonprofit Law: Disposal of Assets due to Downsizing, harvey mechanic, irs pub
harvey mechanic, irs pub, case furniture: 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 certainly may sell assets and use for their exempt purposes as far as the IRS is concerned....

Nonprofit Law: Donation, irs publication 526, private family foundation
irs publication 526, private family foundation, irs gov: Because the change was requested in a subsequent year, I suggest that the 501(c)(3) organization to decline the request of the donor and refund $1000 to the donor (the private foundation) and then issue the 1099-Misc. to the private foundation for the year...

Nonprofit Law: Donations by 501(c)(3) to 501(c)(4), harvey mechanic, public charity
harvey mechanic, public charity, 501 c 4: A 501(c)(3) organization may only give funds if it has a particular purpose for the use of the funds and it receives reports as to the ultimate use of the funds. An exemption would be if a 501(c)(3) organization gives to a public charity. Does the 501(c)(3)...

Nonprofit Law: Donations Deductible?, irs gov, harvey mechanic
irs gov, harvey mechanic, deductible charitable contributions: Even though your receipts are not going to be more than $5000 per year, in order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations you would need to establish a charitable trust, incorporate under a state s...

Nonprofit Law: donations to charities, harvey mechanic, apartment building
harvey mechanic, apartment building, charitable gift: He can request the donations back from the charities, explaining his situation. Other than that, 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...

Nonprofit Law: Forms of reimbursement for nonprofit volunteers, federal mileage rate, nonprofit volunteers
federal mileage rate, nonprofit volunteers, www irs gov: The form does not matter. Your assumption is not correct. The charitable rate of 14 cents only refers to unreimbursed expenses. Many people are confused about that and the IRS does not explain it well, but we only see that 14 cent rate mentioned in...

Nonprofit Law: Fundraisers, unrelated business income, www irs gov
unrelated business income, www irs gov, irs publication: You are welcome. The club would need to rent the space to members for a fair market value. Otherwise, it would be considered inurement which is prohibited. Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv...

Nonprofit Law: Fundraising Distributions for 501c7, sports recreation club, www irs gov
sports recreation club, www irs gov, gross receipts: You can not amend your application until you amend your organizational documents, like your articles of incorporation and bylaws, to include required clauses. See the IRS Publication 557 Tax Exempt Status for Your Organization at: www.irs.gov/pub/irs-pdf/p557.pdf...

Nonprofit Law: Fundraising for a Youth Sports Team, irs publication 557, youth sports team
irs publication 557, youth sports team, nonprofit corporation law: A charitable trust or unincorporated association is usually easier compared to setting up a nonprofit corporation, but then it depends sometimes on the state procedures. I have in my profile that this free forum is only for general questions relating to IRS...

Nonprofit Law: forms for Umbrella Organization, irs publication 557, form 990 ez
irs publication 557, form 990 ez, www irs gov: I am assuming that you are referring to what the IRS calls group exemption and your organization is a subordinate. 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...

Nonprofit Law: founder/pastor, nonprofit corporations, 501 c 3 organizations
nonprofit corporations, 501 c 3 organizations, receiving gifts: 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: fundraising, unrelated business income, www irs gov
unrelated business income, www irs gov, irs publication: If an organization is not an approved 501(c)(3) organization then it may engage in sales activities but then those sales activities are taxable as ordinary business. A 501(c)(3) organization may engage in some activities but, if sales activities are regularly...

Nonprofit Law: Giving Money to an undocumented immigrant, harvey mechanic, www irs gov
harvey mechanic, www irs gov, undocumented immigrant: Many Churches and other 501(c)(3) organizations have what they call a Compassion Fund or Benevolence Fund or something similar. Those purposes are allowed by the IRS for Churches as long as the regular religious activities remain as the main activities...

Nonprofit Law: Gymnastics booster 501(c)(3), www irs gov, federal income taxes
www irs gov, federal income taxes, family benefit: As for the funds benefitting a particular team or event. it would depend upon how many persons are benefitted. The IRS has not published any particular guidelines as to group benefit, as opposed to family benefit. Therefore, I could not give you an answer...

Nonprofit Law: International money transfer thru 501(c)(3) status church, international money transfer, harvey mechanic
international money transfer, harvey mechanic, deductible receipts: If the donor is specifying that the funds go to the international (Australian) church, the donation is not deductible as it is a simple conduit. The donor would not receive a deduction by sending the funds directly to Australia and, therefore, the IRS does...

Nonprofit Law: Inurement benefitting officers?, www irs gov, private shareholder
www irs gov, private shareholder, prudent business practices: 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: IRS donation forms, irs gov, irs forms
irs gov, irs forms, harvey mechanic: If it wants to cooperate with the donor it would complete page two of Form 8283 at Part IV and then Form 8283 would be required if and when the circumstances mentioned in the second paragraph apply: ---Start of Excerpt-- Donee Acknowledgment—To be completed...

Nonprofit Law: Loaning money to a 501(c)3, irs publication 526, personal tax issues
irs publication 526, personal tax issues, 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 quesiton is a question relating to personal tax issues. However, I will direct you to IRS Publication 526 Charitable...

Nonprofit Law: Mileage Expense, irs publication 557, harvey mechanic
irs publication 557, harvey mechanic, www irs gov: It appears from your description that you are considering a gift to the people who travelled to Indianapolis only to discuss their ideas as to a project. You did not make any arrangement, prior to them coming to Indianapolis, to reimburse them for their expenses....

Nonprofit Law: Mileage Reimbursement, www irs gov, irs rule
www irs gov, irs rule, mileage reimbursement: The amount of the reimbursement is an element of your employment contract with the organization. They may give you any reasonable amounts. The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses when determining...

Nonprofit Law: Mileage Reimbursement, federal mileage rate, harvey mechanic
federal mileage rate, harvey mechanic, www irs gov: The federal mileage rate for reimbursements for 2011 is 51 cents. www.irs.gov/newsroom/article/0,,id=232017,00.html but, unless your wife has a contract with the company that requires them to reimburse her for the federal rate, then the rate they pay is...

Nonprofit Law: Monetary Donation to a 501(c)(3), irs publication 526, irs gov
irs publication 526, irs gov, harvey mechanic: It is a donation that is deductible as a charitable contribution if there is no quid pro quo or agreement that you are giving the funds because of something else occuring. As to charitable deductions, see IRS Publication 526 Charitable Donations...

Nonprofit Law: Non Profit Conflict of Interest Question, federal tax questions, www irs gov
federal tax questions, www irs gov, public charities: A conflict of interest is present whenever a director has a material personal interest in a proposed contract or transaction to which the 501(c)(3) organization may be a party. Therefore, in the situation you present, there is a conflict of interest,...

Nonprofit Law: Non-Profit Name Change, state corporations division, harvey mechanic
state corporations division, harvey mechanic, www irs gov: 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. After you receive the filed stamped amendment...

Nonprofit Law: Non-profit fundraising, harvey mechanic, fraternity house
harvey mechanic, fraternity house, shelter animal: The same rules do not apply as, under U.S. law an animal is considered not a person, but property. Property is sometimes referred to as chattel . http://tinyurl.com/45uqro4 If, for example, a church wants to have a fundraiser to repair its garage, that...

Nonprofit Law: NPO ticket donations to other NPO's, irs publication 526, www irs gov
irs publication 526, 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 that are not private foundations. Therefore, I am assuming that you are referring to a 501(c)(3) organization. You...

Nonprofit Law: non-profit clubs, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, profit 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. The IRS does not have any limit as long as it is not a private foundation and that would then only be if the money...

Nonprofit Law: non-profit donations, harvey mechanic, profit donations
harvey mechanic, profit donations, church elders: 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 opening retail store, unrelated business income, youth sports organization
unrelated business income, youth sports organization, unrelated business activities: 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 the charitable, educational, religious or other purpose or function ...

Nonprofit Law: A non-profit raising funds for troubled for-profit, ethnic radio program, www irs gov
ethnic radio program, www irs gov, harvey mechanic: I suggest you read about 501(c)(4) organization at: www.irs.gov/irm/part7/irm_07-025-004.html Specifically note, Since the test for exemption under IRC 501(c)(4) is one of primary activities, an organization exempt under IRC 501(c)(4) may engage in substantial...

Nonprofit Law: nonprofit gift cards, harvey mechanic, mr mechanic
harvey mechanic, mr mechanic, charitable beneficiaries: See http://viewer.zoho.com/docs/lcYOt 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 subject to state wage regulations for employees....

Nonprofit Law: nonprofit gift cards, harvey mechanic, mr mechanic
harvey mechanic, mr mechanic, volunteer member: The first time a gift is given usually there is no problem. However, as a pattern develops, then the level gets to be such that it is treated as normal compensation. See http://viewer.zoho.com/docs/lcYOt which is a newspaper story describing a situation...

Nonprofit Law: Piano lessons in church, private piano lessons, harvey mechanic
private piano lessons, harvey mechanic, 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. The church s federal exemption will not be effected negatively if you do as you proposed... pay the chruch at least...

Nonprofit Law: Prayer and 501 organizations, countless churches, easter seals
countless churches, easter seals, governmental institutions: I m not a lawyer and can t give legal advice, so I can t answer your question in an official or definitive way. But in all my experience as a parliamentarian, I ve only heard we-don t-want-to-offend-someone type of arguments for not having prayer, and never...

Nonprofit Law: personally paid clothing, sweatshirt vest, harvey mechanic
sweatshirt vest, harvey mechanic, irs regulations: 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 IRS regulations relating to your issue. Your issue is controlled by state law and states may differ somewhat...

Nonprofit Law: Real estate donation, health promotion center, harvey mechanic
health promotion center, harvey mechanic, www irs gov: I don t see your question, but a donation to a 501(c)(3) organization, even one that you created will result in charitable deductions available to the donor. The main question is whether your proposal for a health promotion center will be qualified to receive...

Nonprofit Law: Rental Income from a Church - CA, unrelated business taxable income, harvey mechanic
unrelated business taxable income, harvey mechanic, www irs gov: See page 9 of www.irs.gov/pub/irs-pdf/p598.pdf wherein 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...

Nonprofit Law: Required Participation Booster Clubs, harvey mechanic, sports booster club
harvey mechanic, sports booster club, irs regulations: 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. State law would also need to be consulted as to the ability of a school to require a parent to joint and pay fees to...

Nonprofit Law: Requirements for Passing on Complimentary Tickets, harvey mechanic, irs regulations
harvey mechanic, irs regulations, 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) organization. A 501(c)(3) organization may distribute...

Nonprofit Law: Returned donations, irs publication 17, harvey mechanic
irs publication 17, harvey mechanic, www irs gov: That is a negative to be subtracted from your other contribution incomes of 2010. Part I, line 8 is the line 8 Contributions and grants (Part VIII, line 1h) The organization must send to the IRS a 1099-Misc indicating the amounts of the refunds given...

Nonprofit Law: Robert's Rules of Order - Elections, harvey mechanic, organization bylaws
harvey mechanic, organization bylaws, robert s rules of order: That third phrase that is in the bylaws is not the standard way to refer to the use of the Robert s Rules of Order. First I will point out that there are many editions of the the Robert s Rules of Order. You may review the Robert s Rules of Order Revised...

Nonprofit Law: Sale of non-profit donations, irs publication 557, volunteer fire department
irs publication 557, volunteer fire department, irs gov: I am revising my answer because you replied to my email that We are are 501(c)(3) organization and funded by means of a county taxing district, various grants and fund-raising events. We are an independent non-profit organization and contract with the county...

Nonprofit Law: Set-up a Booster Club for a School, irs publication 557, www irs gov
irs publication 557, www irs gov, income tax exemption: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service regulations and not to be treated by the IRS as a normal, for-profit business, you would need to establish a charitable trust, incorporate under a state s...

Nonprofit Law: Setting aside an Annual Meeting, nonprofit corporation act, harvey mechanic
nonprofit corporation act, harvey mechanic, health care act: That is not an exemption issue but it is an accounting issue. Even though accounting is beyond the scope of my free forum, I will direct you. If you want to follow the reccommendations of The Financial Accounting Standards Board, see their Statement 117...

Nonprofit Law: Setting up a Bank account for soccer team, harvey mechanic, www irs gov
harvey mechanic, www irs gov, employer identification number: The IRS explains that, when applying for the Employer Identification Number, the club may check the line for banking purposes only and gives the examples, a bowling league for depositing dues or an investment club for dividend and interest reporting)....

Nonprofit Law: Setting up a Booster Club, harvey mechanic, state recognition
harvey mechanic, state recognition, unincorporated association: Yes, the IRS requires you to first determine the type of entity you want and then to establish it under state law, before you obtain an EIN. If you do obtain an EIN for an unincorporated association, you would then need to obtain a new EIN after you incorporated....

Nonprofit Law: Out of State Branch, harvey mechanic, tax exempt status
harvey mechanic, tax exempt status, state sales tax: You would need to register in each state (other than the state of your incorporation) as a foreign (out of state) organization that wants to conduct business in those other states. That is done by the same division of the state that handles incorporations...

Nonprofit Law: spliting off ambulance service, volunteer fire dept, harvey mechanic
volunteer fire dept, harvey mechanic, volunteer ambulance: There is no problem as long as, after the reorganization, both entities are organized and operating as 501(c)(3) organizations. You would need to advise the IRS of the change of operations (reorganization) and the new entity would need to obtain 501(c)(3)...

Nonprofit Law: sponsors, www irs gov, private benefit
www irs gov, private benefit, fundraising activity: 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. The founder is correct as to than no...

Nonprofit Law: sponsors deduction, irs publication 526, irs gov
irs publication 526, irs gov, harvey mechanic: No. As to charitable deductions, see IRS Publication 526 Charitable Donations 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 contributions to a qualified...

Nonprofit Law: startup question, harvey mechanic, hiv counselor
harvey mechanic, hiv counselor, www irs gov: A 501(c)(3) organization may send funds to a foreign nonprofit in Kenya for charitable purposes. The land would need to be owned by the Kenyan nonprofit (or your nonprofit) and not by those individuals. See www.irs.gov/pub/irs-wd/0504031.pdf for details about...

Nonprofit Law: Third party paying on donor's pledge, irs gov, pledge maker
irs gov, pledge maker, 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. A 501(c)(3) organization may not acknowledge a donation if there is a quid pro quo, unless it reports that. See...

Nonprofit Law: tax information, harvey mechanic, clubhouse lake
harvey mechanic, clubhouse lake, internal revenue code section: I would need to know if your organization has received a determination letter from the IRS that the organization is exempt under Internal Revenue Code section 501. If it has not, let me know if it normally has an annual gross receipts of not more than $5,000....

Nonprofit Law: travel reimbursements, volunteer board members, travel reimbursements
volunteer board members, travel reimbursements, www irs gov: 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: UBIT vs substantially related, unrelated business income, harvey mechanic
unrelated business income, harvey mechanic, www irs gov: It is not considered a full donation if someone gives inventory to a charity and requires some payment. That may be what the IRS calls a bargain sale. If the product sales are not substantially related to the exempt purpose of the 501(c)(3) organization,...

Nonprofit Law: Umbrella, irs publication 557, irs form 8718
irs publication 557, irs form 8718, www irs gov: What you are referring to is called by the IRS 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 at length at: www.irs.gov/pub/irs-pdf/p4573.pdf...

Nonprofit Law: volunteer incentives, www irs gov, mr mechanic
www irs gov, mr mechanic, irs rule: You are welcome. You asked earlier about gifts to volunteers. Reimbursements are not considered gifts. A 501(c)(3) organization may reimburse a volunteer for money spent in assisting the organzation. The IRS rule for what nonprofits may spend money on...

Nonprofit Law: volunteer incentives, mr mechanic, volunteer ambulance
mr mechanic, volunteer ambulance, public roadways: ...Wage and Hour Opinion Letter FLSA2005-51 contains a discussion of what constitutes a nominal fee for determining an individual s volunteer status. That opinion letter discusses the economic realities test in the context of school systems and those...

Nonprofit Law: 501 C3 Youth Travel Softball Team, www irs gov, c3 organization
www irs gov, c3 organization, 501 c3: That first softball team was allowing individuals to collect for their own benefit without paying employment taxes. They are, then, not operating as a 501(c)(3) organization should. However, that is not related to the issue of whether they may transfer...

Nonprofit Law: 501(c) 3 for amateur athletic organization, harvey mechanic, better business bureau
harvey mechanic, better business bureau, tax exempt status: You did not present any facts to support a charge of inurement. Inurement (benefits to insiders) is discussed by the IRS at www.irs.gov/pub/irs-tege/eotopicc90.pdf (It takes a while to load the 52 page pdf file) Harvey Mechanic, Attorney at Law -...

Nonprofit Law: 501(c)3 contributions, fiscal sponsorship, google search
fiscal sponsorship, 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: 501(c)3 Orginization, www irs gov, harvey mechanic
www irs gov, harvey mechanic, internal revenue code section: No. 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: Can a 501(c)3 organization endorse a ballot measure?, harvey mechanic, circuit court case
harvey mechanic, circuit court case, public charities: As long as an exempt 501(c)(3) organization s total lobbying activities for legislation are less than substantial , they are allowed to do so. Please read the section about 40% of the way down in the American Center of Law and Justice Article at http://snipurl.com/3gxut...

Nonprofit Law: 501(c)(3) sells real estate to employee, harvey mechanic, www irs gov
harvey mechanic, www irs gov, fringe benefit: The board of the 501(c)(3) organization only should consider how to achieve the most value for the organization by the sale. It should not, therefore, sell the property for an amount that is below fair market value. Otherwise, the sale would be considered...

Nonprofit Law: 501(c)3 - 'transfer', irs issues, nonprofit corporations
irs issues, nonprofit corporations, articles of incorporation: 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 does not relate to IRS issues but to state issues. Nonetheless, I will give you the following information:...

Nonprofit Law: 501C3 selling items, harvey mechanic, 501c3 status
harvey mechanic, 501c3 status, scholarship fund: As the amounts that you expect are less than 1% of your total income, then the IRS would consider the activity insubstantial, even if the activity was not related to your exempt purposes. In fact, the activity appears to be directly related activity (I am...

Nonprofit Law: 501c3, irs publication 557, harvey mechanic
irs publication 557, harvey mechanic, www irs gov: It appears that the fictitious name is registered to your organization, which I will assume is a Missouri Nonprofit Corporation. Donation checks made to your fictitious name are deductible to the donors as long as the funds go into a bank account with your...

Nonprofit Law: 501c3 bankrupcy, reorganization period, corporation bankruptcy
reorganization period, corporation bankruptcy, bankruptcy proceedings: 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 about bankruptcy. However, I will inform you that the provisions of the Bankruptcy Code (Chapter...

Nonprofit Law: 501c3 entity selling retail, unrelated business income, unrelated business activities
unrelated business income, unrelated business activities, federal tax exemption: 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: How does a 501c3 give a donation to a foreign person?, www irs gov, international grants
www irs gov, international grants, charitable foundations: See www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and international activities of U.S. exempt organizations, and, especially page 3-4 about grants to foreign organizations starting on page 3 at Deductibility - Control Rules...

Nonprofit Law: 501c3 participation in an event?, harvey mechanic, attorney client relationship
harvey mechanic, attorney client relationship, income tax purposes: As long as the 501(c)(3) organization does not benefit the non-exempt organization, it may participate. Otherwise, it would need to follow the IRS regulations for joint ventures. Revenue Ruling 98-15 www.unclefed.com/ForTaxProfs/irs-drop/1998/rr-98-15.pdf...

Nonprofit Law: 501c6 subsidiary, irs publication 557, irs gov
irs publication 557, irs gov, harvey mechanic: Originally you wrote, Can a 501c6 organization form a subsidiary and/or wholly owned subsidiary? That would indicate that the 501(c)(6) organization was going to be the parent. Now you write that The parent organization is not exempt as a 501c6. What...

Nonprofit Law: Band Booster Incentives, school district budgets, sewing hems
school district budgets, sewing hems, irs gov: You are welcome. When 501(c)(3) organization s grant scholorships, they must do so, following procedures that are confirmed as valid by the IRS and, if the organization gives preference to student who work, that would not be approved. You need advance...

Nonprofit Law: Board Members, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, corporate insider: Most states, and the IRS, would object if the Board was controlled by persons who are related by blood, marriage or business relationship, but they do not prohibit any one person from being on the Board because that person is married to a corporate insider...

Nonprofit Law: Board member requirements, harvey mechanic, new york not for profit corporation law
harvey mechanic, new york not for profit corporation law, member requirements: The New York Not-for-Profit Corporation Law revised 2010 is available at: http://law.justia.com/newyork/codes/2010/npc Specifically, Section 702 has (a) The number of directors constituting the entire board shall be not less than three. http://tinyurl.com/4nq9c55...

Nonprofit Law: Boosters, harvey mechanic, www irs gov
harvey mechanic, www irs gov, pta group: Is the booster organization incorporated? If so, in what state? Does the club have bylaws? Has the club signed a contract with the School Board as to control issues? After you give me that information I will reply further. Harvey Mechanic, Attorney...

Nonprofit Law: can we buy a condo as an office?, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, exempt purposes: I don t know why you wrote that the 501(c)(3) organization may not hold legal title to the condo. If you look at the covenants on the deed (homeowner s association rules) you will find what you are looking for. If you find such a clause, email me the text...

Nonprofit Law: Cemetery, speculative investments, public charities
speculative investments, public charities, dubious distinction: You are welcome. www.irs.gov/irm/part7/irm_07-025-013.html is some IRS information about 501(c)(13) organizations. Especially note at www.irs.gov/irm/part7/irm_07-025-013.html#d0e312 ---Start of Excerpt-- A tax-exempt cemetery company may accumulate...

Nonprofit Law: Church Employee Minimum Wage, minimum wage laws, harvey mechanic
minimum wage laws, harvey mechanic, 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 quesiton is not an exemption issue with the IRS. But I will direct you to the article about the Federal Fair Labor...

Nonprofit Law: Church Financial Disclosure, irs gov, harvey mechanic
irs gov, harvey mechanic, nonprofit corporation law: Starting at Louisiana Revised Statutes §12:201 is the Louisiana Nonprofit corporation law http://pages.citebite.com/b2b1f8q6y8lxm If the church has been incorporated under that corporation law then, specifically note RS 12:223 — Corporate records and...

Nonprofit Law: Church nonprofit, irs publication 557, harvey mechanic
irs publication 557, harvey mechanic, www irs gov: You have asked a question about section 508, which starts out (a) New organizations must notify Secretary that they are applying for recognition of section 501(c)(3) status . http://codes.lp.findlaw.com/uscode/26/A/1/F/II/508 See the IRS Publication...

Nonprofit Law: Church an umbrella for member ministries, irs publication 557, harvey mechanic
irs publication 557, harvey mechanic, www irs gov: You are welcome. 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 church may set up as many accounts as it wants including an account using a fictitious (note...

Nonprofit Law: College scholorship fund-High School Booster Club, college scholorship, www irs gov
college scholorship, www irs gov, harvey mechanic: You need advance approval from the IRS for your method of giving scholarships if you want assurance that your procedure is not going to be called illegal by the IRS. For organizations granting scholarships, Schedule H of the IRS Exemption Application...

Nonprofit Law: College student body organizations, irs publication 526, student body organization
irs publication 526, student body organization, irs gov: Note that the donor may not receive a deduction when that same donor decides who is to receive the funds. As to charitable deductions, see IRS Publication 526 CharitableDonations www.irs.gov/pub/irs-pdf/p526.pdf on page 6 where the IRS lists as not deductible...

Nonprofit Law: Community Foundation and "Pass Through Funds", irs 990, cadillac area
irs 990, cadillac area, public charities: Pass through funds to public charities are allowed as conduits. The problem would be if a 501(c)(3) organization advertised that people could give donations to it and they would be deductible and the 501(c)(3) organization would honor the wishes of where...

Nonprofit Law: Contribution Not Voluntary , www irs gov, publication 526
www irs gov, publication 526, gov pub: 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 assume, therefore, that the private school has received a determination letter from the IRS that the organization...

Nonprofit Law: Convert 501(c)(4) to a for-profit entity, www irs gov, harvey mechanic
www irs gov, harvey mechanic, 501 c 3 organizations: 501(c)(4) organization about which the IRS writes at: www.irs.gov/irm/part7/irm_07-025-004.html are considered similar to 501(c)(3) organizations except in a few areas www.irs.gov/irm/part7/irm_07-025-004.html#d0e332 Generally then, I would need to read...

Nonprofit Law: Credit cards for Non-profits?, harvey mechanic, california pta
harvey mechanic, california pta, mail: A credit card makes certain types of purchases so much easier that business, whether for-profit or nonprofit, have them issued to certain persons. I suggest a card with a certain lower limit (like $500), but that limit would depend upon the size of your organization...

Nonprofit Law: c6 subsidiary, liability company act, harvey mechanic
liability company act, harvey mechanic, limited liability company: Sorry, I should have written that I was referring to to federal income taxes not to sales tax, but now you write that the parent is a (c)(6). Therefore, it can set up a for-profit and own all of the shares of the new for-profit or be a member of the for-profit....

Nonprofit Law: changing a non-profit to a for profit, harvey mechanic, nonprofit hospital
harvey mechanic, nonprofit hospital, 501c 3: Only when the state has a procedure for the assets of the nonprofit to first be given to charitable organizations and that procedure is usually only used when a nonprofit hospital converts to become a for-profit hospital. Harvey Mechanic, Attorney at...

Nonprofit Law: Dance Competition Team Tax Exempt, dance competition team, harvey mechanic
dance competition team, harvey mechanic, irs regulations: If the team members are below the age of 19 then they may organize what the IRS calls a 501(c)(3) organization booster organization and raise funds for the team. My summary of IRS regulations relating to 501(c)(3) booster organizations is at: http://snipurl.com/boostersirs...

Nonprofit Law: Designated funds, harvey mechanic, walking in my shoes
harvey mechanic, walking in my shoes, salvation army: No, they don t have a right to use it for other purposes. However, if they refuse to refund you the funds, you may have difficulties in a court. If they do refuse to return those funds, let me know your state and I will reply further. Harvey Mechanic,...

Nonprofit Law: Donations from pools of individuals, acknowledgement letters, tax receipts
acknowledgement letters, tax receipts, income taxation: In Davis v. United States, 495 U.S. 472 (1990), the Supreme Court provided guidance for the first time on the issue of whether payments made to or for the use of a qualified organization were deductible as charitable contributions under IRC 170(c). ...

Nonprofit Law: designated giving, irs gov, harvey mechanic
irs gov, harvey mechanic, irs publication: It is not unlawful to give a donation that is designated, as long as the church does not give the donor an acknowledgment of a donation, without specifying any agreement. See the IRS Publication Charitable Donations --- Substantiation and Disclosure Requirements...

Nonprofit Law: donations, irs publication 526, irs gov
irs publication 526, irs gov, harvey mechanic: A church or any other 501(c)(3) organization may demand a certain minimum donation from someone, but then, if something is given in return, then the part of the value that is given in return is not a donation. It is then a sale. As to charitable deductions,...

Nonprofit Law: employee sky miles, harvey mechanic, mileage awards
harvey mechanic, mileage awards, flyertalk: Either way is fine. I work on legal issues and it is not a legal issue and I don t know how nonprofits handle it, but generally businesses have been letting their employees keep the mileage awards. You might want to check at www.flyertalk.com Harvey...

Nonprofit Law: Family foundation donation to 501(c)(3), federal tax questions, www irs gov
federal tax questions, www irs gov, tax exempt organization: Is your 501(c)(3) organization a public charity? If it is then there is no problem with a family foundation donating funds to a public charity. The Board, without those members who are subject to conflicts, would vote on the use of the funds. A conflict...

Nonprofit Law: Fiscal Sponsorship of Charitable Project, fiscal sponsorship, irs gov
fiscal sponsorship, irs gov, google search: 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: Followup on donating to foreign for-profit, tax law question, irs tax code
tax law question, irs tax code, sustaining communities: Now you are asking about giving funds to a foreign for-profit entity. --- Start of Excerpt --- A section 501(c)(3) organization will not jeopardize its exemption even though it distributes funds to organizations that are not themselves charities. The exempt...

Nonprofit Law: Form 1023 - date of formation vs. founding, public charity status, federal tax exemption
public charity status, federal tax exemption, harvey mechanic: The corporation has only been in existence since September of 2010 and that is what the IRS is referring to. Note, however, that you would need to complete Schedule G of that Form 1023 for Successors to Other Organizations. The IRS has eliminated the procedure...

Nonprofit Law: Forming a non-profit to raise money for other non-profits, harvey mechanic, plate requests
harvey mechanic, plate requests, boiler plate: I would need to see the details of your budget in order to advise you that you do not have more than an insubstantial social purpose. In the leading case elucidating the purposes considered exempt under Sec. 501(c)(3), the Supreme Court in Better Business...

Nonprofit Law: Gymnastics booster 501(c)(3), irs publication 557, irs gov
irs publication 557, 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 inform you that I do not know of any other exempt status that it would qualify for. Those exempt...

Nonprofit Law: Can the Homeowner's Overrule the HOA Board by Majority of votes?, harvey mechanic, www irs gov
harvey mechanic, www irs gov, hoa board: 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: high school booster club, harvey mechanic, high school booster club
harvey mechanic, high school booster club, employer identification number: The school appears to have allowed the coach to misrepresent the nature of the account. Also the coach appears to have misrepresented the nature of the account, as it was simply the coach s personal account and the coach would need to account for the funds...

Nonprofit Law: hoa closed meeting regulations, executive sessions, executive session
executive sessions, executive session, association member: If our bylaws do not state otherwise, am I allowed to have a non-member attend such a meeting? No. An executive session is closed to everyone except voting members of the body that is meeting, and anyone they invite. I also wonder if another...

Nonprofit Law: can an incorporated hockey booster club use the EIN of a youth hockey organization, school hockey team, youth hockey association
school hockey team, youth hockey association, irs gov: www.irs.gov/businesses/small/article/0,,id=98011,00.html has: You will be required to obtain a new EIN (tax-id) if any of the following statements are true....A corporation receives a new charter from the secretary of state. Therefore, the corporation...

Nonprofit Law: Legal Defense Fund, harvey mechanic, purpose clauses
harvey mechanic, purpose clauses, articles of incorporation: You definitely need to advise the IRS that you want to amend your application for exemption. As for the State of New York, the New York Not-for-Profit Corporation Law revised 2010 is available at: http://law.justia.com/newyork/codes/2010/npc and specifically,...

Nonprofit Law: Loans from members to 501(c)(3), form 1099 misc, low interest loans
form 1099 misc, low interest loans, irs website: The previous questioner had asked Is it permissible for a private individual to loan money at no interest to a non-profit corporation? I answered The IRS rule is that 501(c)(3) organizations may take out loans and those with no interest are preferred. ...

Nonprofit Law: A M Turing Award by ACM; Intel Funds 1/4 Mil., information technology product, harvey mechanic
information technology product, harvey mechanic, vinton cerf: Generally, nonprofit organizations may have confidential meetings. ACM is located in New York. www.acm.org/about/contact-us/ As New York State law on Open Records and Open Meetings See www.rcfp.org/ogg/index.php?op=browse&state=ny (which is slow loading)...

Nonprofit Law: Member Benefits & Retention, tax deductible donations, membership banquet
tax deductible donations, membership banquet, tax deductible donation: I don t believe that it seems that I have written that the only funds usable for the benefit of members are membership dues. But, as for your specific question, a 501(c)(3) organization is supposed to be charitable, educational or religious. A banquet...

Nonprofit Law: Mileage reimbursement for founder, business mileage rate, chief cook and bottle washer
business mileage rate, chief cook and bottle washer, www irs gov: The charitable rate of 14 cents only refers to unreimbursed expenses. Many people are confused about that and the IRS does not explain it well, but we only see that 14 cent rate mentioned in the Code or Regulations at http://snipurl.com/dqqw4 which is...

Nonprofit Law: Missionary Support, arabic language study, missions department
arabic language study, missions department, long term goal: 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 specific questions. I would be willing to work on your matter, but I would need to spend a substantial...

Nonprofit Law: mileage reimbursement for volunteers acting in place of employees, business mileage rate, harvey mechanic
business mileage rate, harvey mechanic, mileage reimbursement: Yes, volunteers who are not independent contractors can be reimbursed at the business mileage rate. The charitable mileage rate is only part of section 170 which deals with charitable donations. Specifically, that section gives a charitable rate only for...

Nonprofit Law: mission society per IRS Pub 557?, irs publication 557, harvey mechanic
irs publication 557, harvey mechanic, www irs gov: See IRS Publication 557 Tax Exempt Status for Your Organization available at: www.irs.gov/pub/irs-pdf/p557.pdf in the right column on page 22 under Organizations Not Required to File Form 1023 discusses who does not need to file: --- Start of Excerpt...

Nonprofit Law: Non Profit Baseball/Softball assoc. Financials, public disclosure requirements, irs gov
public disclosure requirements, irs gov, 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: Non-Profit Expansion, harvey mechanic, attorney client relationship
harvey mechanic, attorney client relationship, purple knights: I am somewhat familiar with Boys & Girls Clubs of America. They have a website at: www.bgca.org/Pages/index.aspx I see that, at least in California, there are many unit that appear to be affiliated and which are separately incorporated. You can view...

Nonprofit Law: Non Profits Taking a Fee for Raising Funds, harvey mechanic, www irs gov
harvey mechanic, www irs gov, securities exchange act: I was not referring to the amount of the funds that the 501(c)(3) organization raises that it does not give to the for-profit entity. I was referring to the funds that it raises and gives, by a contract, to the for-profit entity. Your proposal indicated such...

Nonprofit Law: A new 501c3 using a fiscal agent, irs publication 78, irs determination letter
irs publication 78, irs determination letter, google search: A new 501(c)(3) organization may contract with other 501(c)(3) entities to work with. I do not, however, recommend the use of the term fiscal agent . The IRS uses the phrase fiscal sponsor only a few times as we can see by a Google search: site:irs.gov...

Nonprofit Law: non for profit charitable donations, irs publication 557, irs gov
irs publication 557, irs gov, harvey mechanic: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You can find that in the articles of incorporation. If it is a 501(c)(3) organization, I would need to know if it is a private foundation. After you reply I will...

Nonprofit Law: non-profit law, irs determination letter, harvey mechanic
irs determination letter, harvey mechanic, exempt activities: 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). A 501(c)(3) organization that is not a private foundation may accumulate funds for one or two years or...

Nonprofit Law: Opening Branch Overseas, harvey mechanic, www irs gov
harvey mechanic, www irs gov, international grants: 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 assume that your question is whether you are going to have to file any additional paperwork with...

Nonprofit Law: operating a child care withing a 501C, child care business, harvey mechanic
child care business, harvey mechanic, attorney client relationship: A 501(c)(3) organization like a church may lose its exemption if it gives too much private benefits. An extensive discussion of by the IRS of the private benefit issue relating to 501(c)(3) organizations is found at: www.irs.gov/pub/irs-tege/eotopich01.pdf...

Nonprofit Law: organizing nonprofit benefit events, harvey mechanic, benefit events
harvey mechanic, benefit events, benefit event: 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. What you are referring to is activity of an individual. An individual is not a qualified 501(c)(3) organization. ...

Nonprofit Law: Private club parent organization formation, harvey mechanic, www irs gov
harvey mechanic, www irs gov, irs regulations: A 501(c)(3) organization may not be established to benefit a for-profit entity, but may be established for the benefit of youth. What you propose would simply have too much private benefit to the for-profit gym. An extensive discussion of by the IRS of the...

Nonprofit Law: Profit Sharing with a for profit, harvey mechanic, income tax purposes
harvey mechanic, income tax purposes, share profits: Revenue Ruling 98-15 www.unclefed.com/ForTaxProfs/irs-drop/1998/rr-98-15.pdf on the bottom of pdf page 14 and going to page 15 ---Start of Excerpt-- A § 501(c)(3) organization may form and participate in a partnership, including an LLC treated as a partnership...

Nonprofit Law: processing city expense funded contracts, irs publication 557, irs gov
irs publication 557, irs gov, harvey mechanic: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You can find that in the articles of incorporation. If it is a 501(c)(3) organization, I would need to know if it is a private foundation. After you reply I will...

Nonprofit Law: proxy voting, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, articles of incorporation: 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: Re: Mandated fundraising, unrelated business income, little league baseball
unrelated business income, little league baseball, fringe benefit: I don t know which of my previous answers you are referring to, but if a Little League has fees and allows the fees to be waived if there is work done, that is allowed by then that work is consider regular taxable employment as fringe benefits are given in...

Nonprofit Law: Renting space owned by a non-profit, unrelated business income, unrelated business taxable income
unrelated business income, unrelated business taxable income, property tax exemption: See IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations at www.irs.gov/pub/irs-pdf/p598.pdf on page 9 where we we see Rents from real property... are excluded in computing unrelated business taxable income. However, see pages...

Nonprofit Law: Reporting donations as income
Sorry. http://codes.lp.findlaw.com/uscode/26/A/1/B/III/102 should work. As for your question regarding large gifts to indeed contractors, I doubt that the organization wants to categorize them as gifts as the IRS would consider them part of a fund developed...

Nonprofit Law: receipts for use of "entire facility", irs publication 526, irs gov
irs publication 526, irs gov, harvey mechanic: a. No. As to charitable deductions, see IRS Publication 526 Charitable Donations 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...

Nonprofit Law: Salary Disclosure Non Profit, free speech rights, harvey mechanic
free speech rights, harvey mechanic, nonprofit corporation law: Unless the articles of incorporation, bylaws, or employment contract specify otherwise, officers have free speech rights. However, they are held to a standard of care in that they should not be doing anything to hurt the organization. The Missouri Nonprofit...

Nonprofit Law: Scholarship to needy athlete (not for college), unrelated business income, irs gov
unrelated business income, irs gov, scholarship activity: The IRS only refers to Scholarships in the context of educational purposes. You can see that in the first column of page 23 of IRS Instructions to Application for Exemption www.irs.gov/pub/irs-pdf/i1023.pdf A grant by the 501(c)(3) booster organization...

Nonprofit Law: Selling assets of a 501c3, public benefit corporations, public benefit corporation
public benefit corporations, public benefit corporation, nonprofit public benefit: http://law.justia.com/codes/california/2009/corp.html starting at section 5002 is the California Nonprofit Corporation s law as of 2009 and specifically starting at 5110 is the law for Nonprofit Public Benefit Corporations. Specifically as to Standards...

Nonprofit Law: Selling Book on Amazon.com, unrelated business income, unrelated business activities
unrelated business income, unrelated business activities, federal tax exemption: You may certainly sell such a book as it appears that the gross income will result in less than 5% of your organization s annual gross income. But the question is whether the income is taxable. IRS Publication 598 Tax on Unrelated Business Income of Exempt...

Nonprofit Law: Selling eBooks as a Corporate Sole, harvey mechanic, 501 c 3 organizations
harvey mechanic, 501 c 3 organizations, corporation sole: No, not unless the corporation sole has been organized as a 501(c)(3) organization (with IRS required clauses for such organizations) and is operating in accordance with the regulations for such 501(c)(3) organizations. Harvey Mechanic Attorney at Law...

Nonprofit Law: Selling food products, irs publication 557, irs gov
irs publication 557, 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. Your question relates to California law. I will be willing to help, but first I need to know what your entity name...

Nonprofit Law: Separating a 501(c)(3) Non-Profit
As there is presently only one corporation, you would first establish with the state a new nonprofit corporation and then decide whether you want to have a group exemption with a parent and a subordinate or you wanted to have two separate organizations without...

Nonprofit Law: Separating a 501(c)(3) Non-Profit, irs publication 557, irs form 8718
irs publication 557, irs form 8718, www irs gov: Don t use the word umbrella or the word parent unless you are referring to two different organizations (for example two different corporations). Is the present organization a corporation? After you give me that information I will reply further. I...

Nonprofit Law: Sponsorship 'transfers'?, harvey mechanic, irs rules
harvey mechanic, irs rules, sponsorship money: Your organization needs to find out whether it gave him a donation acknowledgment before it gives him a partial or full refund. For if it did give such an acknowledgment, then the organization must send to the IRS a 1099-Misc indicating the amounts of the...

Nonprofit Law: Out-of-State Nonprofit, irs publication 557, irs form 8718
irs publication 557, irs form 8718, www irs gov: You can register in Florida but you will need then a Florida registered agent. It appears you want to incorporate and Florida and then register in California as a foreign (out of state) corporation doing business in California. By how will this affect my...

Nonprofit Law: Swim Club Members and by-laws New York, incorporation certificate, legal citation
incorporation certificate, legal citation, certificate of incorporation: 1. That section is found at: http://law.justia.com/codes/new-york/2010/npc/article-7/701/ and the only relevant phrase is (a) Except as otherwise provided in the certificate of incorporation, a corporation shall be managed by its board of directors....

Nonprofit Law: Swim Club Question, relevant clauses, certificate of incorporation
relevant clauses, certificate of incorporation, relevant pieces: It appears that you have read some of my previous responses. As I wrote earlier, I would be willing to answer further questions but first I would require a copy of the certificate of incorporation. I will also now require a copy of the bylaws. Otherwise,...

Nonprofit Law: Swim club by-laws and member votes, competitive swim club, membership vote
competitive swim club, membership vote, certificate of incorporation: Ok, it appears that you are now writing that the version of the bylaws that first had the provision which gave the membership to right to the vote as to firing a coach was adopted by the members. That code section 602 has unless otherwise provided in ...

Nonprofit Law: selling a 501c3, gov ernment, www irs gov
gov ernment, www irs gov, private shareholder: Nonprofits arrange salaries in the year of the work and before the work. It may not give funds to insiders (including employees) who volunteered in previous years. This is federal law. It does not matter what state. Private inurment is prohibited. Harvey...

Nonprofit Law: selling a 501c3, www irs gov, harvey mechanic
www irs gov, harvey mechanic, gov ernment: A 501(c)(3) organization is not owned and, therefore, it may not be sold. However, the board of directors may be changed. If you want to dissolve, instead, the present board would need to approve that. In order to have obtained IRS exemption determination,...

Nonprofit Law: spliting off ambulance service, irs publication 557, volunteer ambulance corp
irs publication 557, volunteer ambulance corp, harvey mechanic: The New York Not-for-Profit Corporation Law revised 2010 is available at: http://law.justia.com/newyork/codes/2010/npc Specifically, as to Disposition of all or substantially all assets, that would be covered by §510 of the Not-for-Profit Corporation...

Nonprofit Law: subordinate status, irs publication 526, irs gov
irs publication 526, irs gov, harvey mechanic: If the school district allows a booster organization to use its EIN (Employer Identification Number, also known as the taxpayer identification number) or name for soliciting funds, the IRS will expect then that all funds would go into a bank account with the...

Nonprofit Law: suspicious non profit, deductible charitable contributions, irs gov
deductible charitable contributions, irs gov, public charities: It appears that you found that first paragraph from one of my earlier answers. For the benefit of others I will give the url where the IRS made that statement. From the IRS: Some entities eligible to receive tax deductible charitable contributions may...

Nonprofit Law: team fundraising, irs gov, harvey mechanic
irs gov, harvey mechanic, mr mechanic: The IRS does not grant exemption to an organization nor does it allow an organization to maintain exemption if it gives funding to individuals or to a small group named during solicitations nor does it allow donors for such purposes to deduct their donations...

Nonprofit Law: one time fundraiser for high school student senior year Project, irs publication 557, www irs gov
irs publication 557, www irs gov, norther california: 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 would certainly be easier if the Catholic High School allows the project under their own federal exemption. ...

Nonprofit Law: travel sports 501's deductions if son is on team, irs publication 526, www irs gov
irs publication 526, www irs gov, game fees: 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. As to charitable deductions, see...

Nonprofit Law: Use of donations to USA nonprofit in other country, tax law question, irs tax code
tax law question, irs tax code, sustaining communities: I did use that paragraph: --- Start of Excerpt --- A section 501(c)(3) organization will not jeopardize its exemption even though it distributes funds to organizations that are not themselves charities. The exempt organization must ensure of the funds...

Nonprofit Law: Write off rent give back to a charity, irs pub 526, irs gov
irs pub 526, irs gov, harvey mechanic: You may not take a deduction for the contribution if it is based upon an agreement with Charity XYZ. Donations need to be voluntary to be deductible and not based upon getting something tangible in return (like increased rent). See the IRS Publication...

Nonprofit Law: Not Having 501(c)(3), irs publication 557, irs gov
irs publication 557, irs gov, harvey mechanic: The IRS may take months to issue the exemption determination letter, but as long as you file your exemption application within 15 months and are approved for exemption status by the IRS you may begin full operations upon state incorporation. See IRS Publication...

Nonprofit Law: 501(c) 3 Distribution of Funds, harvey mechanic, hotmail
harvey mechanic, hotmail, booster organization: Work for benefits is taxable as employment compensation. Such an operation would be what the IRS calls a cooperative. A cooperative is not qualified as a 501(c)(3) organization. In denying exemption to a purported 501(c)(3) organization booster organization,...

Nonprofit Law: 501(c)(3) granting scholarships, attorney client relationship, harvey mechanic
attorney client relationship, harvey mechanic, high school booster club: You are welcome. I suggest your organization not call it a scholarship but that you call it a grant. A grant is not considered to be taxable income. The Internal Revenue Code at section 102(a) provides that generally gifts are not income. Gross income...

Nonprofit Law: 501(c)(3) selling goods, unrelated business income, www irs gov
unrelated business income, www irs gov, irs publication: 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 the charitable, educational, religious or other purpose or function ...

Nonprofit Law: 501(c)6 Assets on Hand, harvey mechanic, attorney client relationship
harvey mechanic, attorney client relationship, 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 advise you that thet the IRS should use the same test. The court that I cited in my March 9th...

Nonprofit Law: 501.c3 religious, tax exempt organization, law question
tax exempt organization, law question, robert s rules of order: I m not an attorney and can t give legal advice or answer an obligated by law question, but... Ordinarily, any member of any organization should have an opportunity to see minutes of meetings to which they have attendance and voting rights, and to earlier...

Nonprofit Law: 501c3 application, www irs gov, tax exempt organizations
www irs gov, tax exempt organizations, irs website: The IRS Tax Guide for Churches and Religious Organizations (Pub. 1828, www.irs.gov/pub/irs-pdf/p1828.pdf), says on page 3: Churches that meet the requirements of IRC section 501(c)(3) are automatically considered tax exempt and are not required to apply...

Nonprofit Law: 501c3 Diaster Relief Fun Transfer to Foreign NGO, www irs gov, irs approval
www irs gov, irs approval, diaster relief: 1. A 501(c)(3) organization may engage in any activities that are allowed by Section 501(c)(3) of the Internal Revenue Code. Charitable activities, such as you propose are allowed. Exempt organizations determination letters state that if its mode of operation...

Nonprofit Law: Access to previous Board of Director meeting minutes, outright denial, nonprofit corporations
outright denial, nonprofit corporations, outgoing chairman: The New York Not-for-Profit Corporation Law revised 2010 is available at: http://law.justia.com/newyork/codes/2010/npc There is nothing specific to your issue. but you can use my previous answer which applies generally to all states. Note a corporation...

Nonprofit Law: Amending non-profit bylaws, public benefit corporations, california secretary of state
public benefit corporations, california secretary of state, nonprofit public benefit: No. http://law.justia.com/codes/california/2009/corp.html starting at section 5002 is the California Nonprofit Corporation s law as of 2009 and specifically starting at 5110 is the law for Nonprofit Public Benefit Corporations. I am assuming your organization...

Nonprofit Law: Who can attend exeutive meeting of a 501 c3?, homeowners association law, 501 c3
homeowners association law, 501 c3, parliamentary law: Your question isn t clear, as I ll explain. An organization may have a voting membership that has membership meeting, a board of directors, and an executive committee. Many organizations have no executive committee (EC), and some have no voting membership...

Nonprofit Law: Blood Banks, harvey mechanic, attorney client relationship
harvey mechanic, attorney client relationship, open meetings law: You are welcome. You are right that the information is not of public knowledge. Right. at 1.B.4, which I referred to above, OPRA only applies to records of any officer, commission, agency or authority of the State or of any political subdivision thereof,...

Nonprofit Law: Board Member tax expemtion, harvey mechanic, attorney client relationship
harvey mechanic, attorney client relationship, 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 not an exemption issue but is a sales or excise tax issue. I will inform you that I don t know of...

Nonprofit Law: Board Positions, quick responce, open invoice
quick responce, open invoice, nomination acceptance: Do you know of a website where I can find complete info on the process of an ad hoc committee. How it s supposed to run. I don t know of any site that has complete info, but here are some sites that may be helpful. But your best resource is RONR s treatment...

Nonprofit Law: Booster Club Individual Accounts, harvey mechanic, attorney client relationship
harvey mechanic, attorney client relationship, irs regulations: They are simply lucky that the IRS has not been auditing them. They are violating a basic principle of 501(c)(3) organizations. Such an operation would be what the IRS calls a cooperative. A cooperative is not qualified as a 501(c)(3) organization. A...

Nonprofit Law: Booster for local rec dept swim team, irs form 1023, attorney client relationship
irs form 1023, attorney client relationship, harvey mechanic: No. As long as the participants are youth and the membership is open, then it would be treated by the IRS like a school booster organization. You would put your purposes in the articles of incorporation and then explain it also in the narrative part of the...

Nonprofit Law: Church rental property, unrelated business income, unrelated business taxable income
unrelated business income, unrelated business taxable income, harvey mechanic: 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 the charitable, educational, religious or other purpose or function ...

Nonprofit Law: Church subleasing building, unrelated business income, unrelated business taxable income
unrelated business income, unrelated business taxable income, www irs gov: See page 9 of IRS Publication 598 Tax on Unrelated Business Income of Exempt Organizations at 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...

Nonprofit Law: Coaches sitting on booster boards, harvey mechanic, attorney client relationship
harvey mechanic, attorney client relationship, hotmail: I am assuming that the Board has at least 3 unrelated members. Therefore, it is legal to have the coach as one of the Board members. Just so that coach does not control the Board, it is fine. Harvey Mechanic, Attorney at Law - Harvey108@hotmail.com...

Nonprofit Law: Conflict of Interest, federal tax questions, www irs gov
federal tax questions, www irs gov, public charities: A conflict of interest is present whenever a director has a material personal interest in a proposed contract or transaction to which the 501(c)(3) organization may be a party. Therefore, in the situation you present, there is a conflict of interest,...

Nonprofit Law: What is Considered Public Support?, www irs gov, noncash contributions
www irs gov, noncash contributions, adoption fees: See www.irs.gov/pub/irs-pdf/p557.pdf starting on page 30 Qualifying as Public Supported a. In calculating the public support you would need to use the 2% rule which the IRS discusses starting in the first column of page 33 of that Publication 557...

Nonprofit Law: Control of a 501c3 by a for-profit corporation, federal tax questions, www irs gov
federal tax questions, www irs gov, public charities: A nonprofit organization is not owned. It is, however, controlled by its Board of Directors and any voting members, if there are voting members besides the board members. A for-profit corporation may have the authority to appoint the members of the Board...

Nonprofit Law: Can court appoint a free lawyer for poor non-profit organizations, harvey mechanic, attorney client relationship
harvey mechanic, attorney client relationship, free legal representation: I don t know of any right to be provided with free legal representation, except for criminal charges. Under the law an attorney can not be forced to provide free legal representation. In the situation when there is a criminal case and the state provides...