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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 > fraudulant use of 501(c)3

Nonprofit Law - fraudulant use of 501(c)3

Expert: Harvey Mechanic - 11/8/2009

Question
QUESTION: Can a person change the name of a 501(c)3 organization and the name of the person it is registered under, and still keep the same not-for-profit number? What are the chances that a person's not-for-profit status will be revoked if fraud can be shown? (It's not a million dollar operation, but it has caused MUCH frustration for other legitimate organizations.) How can we convince the IRS to conduct an investigation?
THANK YOU FOR YOUR HELP....we are SO frustrated.

ANSWER: First let me inform you that, if you are representing a competitor, you may be able to sue that organization if they have been using fraud or misrepresentation.

As to your specific question, the Board of Directors of a nonprofit corporation may change the name of the corporation if there is an amendment filed with the State corporations division. There is no way to change the name of the incorporator. I don't know what you mean by the "name of the person it is registered under", but the registered agent may be changed. Such change does not change the EIN (federal tax identification number).

If there is substantial and material fraud, then it is certainly possible that the State or IRS would revoke the nonprofit status.

Complaints could go to your State's Attorney General's Office as
that office generally oversees charities within the state. If the
action is criminal then your local district attorney may be
interested in prosecuting as at:
http://viewer.zoho.com/docs/tzcmai
which is a pdf file of 4 different news stories.

IRS Complaints 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 that is linked
on that page as "Fact sheet 2002-10 and is:
www.irs.gov/pub/irs-news/fs-02-10.pdf

Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com

---------- FOLLOW-UP ----------

QUESTION: You state that "there is no way to change the name of the incorporator. Who is considered the 'incorporator'? Please identify where the state law requires that "an amendment be filed with the state corporations division" If such an amendment is not filed, what is the result?
THANK YOU SO MUCH

Answer
I have in my profile that this free forum is only for relevant 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 though this forum is not for such state law issues, if you give me your state I may be able to direct you.

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

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