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About Harvey 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

You are here: Experts > Real Estate > Tax Planning: U.S. > Nonprofit Law > disbursement percentage

Nonprofit Law - disbursement percentage

Expert: Harvey Mechanic - 11/3/2009

Question
Hello and thank you for your help,

I am a member of a bicycle club with 501c status. currently the club disburses all of its proceeds (generated from organizing a annual bike ride). We are curious how much of that income the law allows us to keep for internal use? someone suggested we need to switch to 501b status but I cannot find info on that.

thanks again
Ed Llorca

Answer
I would need to know the subsection of IRC 501(c) under which the organization was incorporated and received its exemption determination from the IRS. If it is a 501(c)(3) organization, I would need to know if it is a private foundation. After you reply I will respond again. See IRS Publication 557 "Tax Exempt Status for Your Organization"
www.irs.gov/pub/irs-pdf/p557.pdf
starting on page 65 as to the different types of 501(c) organizations.

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

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