Expert: Harvey Mechanic - 11/12/2009

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 the "incorporator?"

ANSWER: Give me your state of incorporation and I will send you the link from that State's code.  But generally the incorporator(s) set up the corporation with the state and sign the articles of incorporation.

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


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

QUESTION: We are in Iowa

Answer
http://bit.ly/rAnjH is the Iowa code

and hit "Control F" to search the page and search
"Chapter 504" without the quotes.

Thank will take you about 65% of the way down that page to
CHAPTER 504  REVISED IOWA NONPROFIT CORPORATION ACT
And you would click on that link and the Nonprofit Corporation
Act opens up on the right side of your screen

and you can go down to 504.201  Incorporators

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