Nonprofit Law/charity

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Question
our organization has yearly dances. This is our 8th year. We raise approx. $5.000.00 per dance. We give $3500.00 to a school for scholarships and put away $1500.00 for the following year's expenses to do another dance. All the work in done by volunteers from our committee. Do we need to file to the IRS? We do have an EIN number. We do not have a 501c3. Do we need one?

Answer
I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. In order to be treated by the IRS as a nonprofit organization, your group would need certain required clauses in the organizational document even if your organization is not required to apply for federal exemption if you want the benefits of being an exempt organization. For example, for 501(c)(3) organizations, see, starting in the middle column of page 26 of Publication 557  under "Organizational Test". Samples start on page 77. Also you must operate as a 501(c)(3) organization (see that publication 557 for the general
rules).

Let me know if you have such clauses in your organizational document and, after you give me that information, I will reply further.

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.  

Nonprofit Law

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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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