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Nonprofit Law/Non Profit fundraising

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Question
Can a 501(C)(6) solicit funds for a related 501(C)(3)if all
donations go to the 501(C)(3) and they only solicit from
their membership?  Does the 501(c)(6) have to be registered
as well as the 501(C)(3) in the states where solicitation
occurred?

Answer
I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. A 501(c)(6) organization, under federal law, may solicit donations from their membership when all of the funds will be going to a 501(c)(3) organization.

Your issues are mostly 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, I may be able to direct you. www.after-prom.org/state_charity_contacts.html has links to the state offices that regulate charitable organizations and charitable solicitations.

It may make a difference whether the donors make out their checks to the 501(c)(3) organization and it also may be relevant if the c6 has a written agreement from the c3 as to the solicitation. I do not know of any states that would require the c3 to register only because a c6 is soliciting donations on its behalf, without compensation, but you would need to check as to the stae where the c3 is located to find out if that state, like California does, requires the c3's that are charities to register after they have received the funds. http://oag.ca.gov/charities

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

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic

Expertise

I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about 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 possible 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. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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