AboutHarvey Mechanic Expertise US Federal tax issues of nonprofit 501(c)(3) public charities only. Establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation.
To search my previous answers you can do a Google search: site:allexperts.com/q/nonprofit [with your other search terms appended].
Experience I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.
Education/Credentials B.S. Columbia University in New York City, 1970
J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude
Question Can I establish a nonprofit organization to generate donations that will be spent on tuition and a living expense stipend for myself while I go to school? If not a non-profit, what type of organization should I establish?
Answer 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
from their federal income taxes. My conclusion is based upon the
following letter in which the IRS indicates that it treats "small
groups" like individuals in the exempt organization context.
www.irs.gov/pub/irs-lafa/den0543r.pdf
on page 3
---Start of Excerpt--
A charitable organization must be set up for the benefit of an
indefinite class of individuals, not for specific persons. A
corporation organized and operated for the
benefit of specific individuals is not charitable, even if the
specific individuals in question are in need of assistance.
Citing to Rev. Rul. 57-449.
---End of Excerpt--
I have in my profile that this free forum is only for relevant IRS federal exemption issues of 501(c)(3) organizations. Your entity will not, as indicated above, be a qualified 501(c)(3) organization. I can inform you that it would be a for-profit entity and donations to it would not be deductible by the donors even if it was a 501(c)(3) organization . 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 organization if you indicate that your
contribution is for a specific person."
Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com
