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Nonprofit Law/501(c)(3) public charity receiving funds from UK charity

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Question
As I understand from your answers to previous questions, there is no legal restriction on a 501(c)(3) charity receiving funds from a foreign charity, as long as the country of origin is not on the US Treasury's sanctions list (in this case the funds would be coming from the UK - which would be fine, I assume!)?

I was wondering if there is any documentation you could direct me to about this?

Answer
It is not that there is any law stating that such an act may be done.  Here in the United States, unless something is specifically prohibited by law, then it is allowed.

I don't know, off the top of my head, of any published case that deals specifically with funding from the UK charity to a U.S. 501(c)(3) organization, but, generally, the support of a U.S. 501(c)(3) organization is discussed by the IRS in its Publication 557 "Tax Exempt Status for Your Organization" which is available at http://www.irs.gov/pub/irs-pdf/p557.pdf and we would have expected, if the IRS knew about issues of funding from the U.K. that it would have mentioned that there or in http://www.irs.gov/pub/irs-pdf/p4221pc.pdf - "Compliance Guide for 501(c)(3) Public Charities."  If you want to look directly at the regulations, though, there are not many and they are available at http://www.law.cornell.edu/cfr/text/26/1.501(c)(3)-1 (and the few sections around that.

www.ustreas.gov/offices/enforcement/ofac/programs
has the list of countries that the U.S. Treasury Department has on
its sanctions list and, if you are dealing with parties in any of
the listed countries, you would need to review the details as to
whether you would be able to send or receive funds from persons in
those countries. (The U.K. is not on that list).

I would be willing to work on your matter further, but I would need to spend a substantial amount of time researching U.S. cases to find something about U.K. funding and that would be beyond the scope of my offer of free services.  If you want to inquire about hiring me for such work, please contact me directly to the email address below.

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

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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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