You are here:

Nonprofit Law/transfer of 501c3 designaion

Advertisement


Question
Can a nonprofit transfer its 501c3 exemption to another nonprofit that does not have such an exemption.  Boards of both nonprofits are in agreement and the organization without the exemption would qualify as 501c3. Should Transferring nonprofit (with 501c3 exemption) cease to exist by dissolution or merging with other nonprofit. If merger occurs and name of resulting organization is the name of the nonprofit without the 501c3, can the 501c3 exemption be utilized by the resulting merged nonprofits? Thank you for your consideration of this issue.

Answer
Exemption is granted by the IRS to a particular entity which has a particular EIN (Employer Identification Number - or Taxpayer Id number).  Exemption may not be transferred to another entity.  However, the board of directors of the exempt organization may, under certain circumstances, elect the board appointed by the other nonprofit. Merger is another option, but certainly the exempt organization could not dissolve as it needs to remain as it has the exemption. In any case, what you want to do requires some agreements and paperwork.   If you want to hire me for that, send me an email directly to my email address below and I will quote you my fees.

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

All Answers


Answers by Expert:


Ask Experts

Volunteer


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.


©2016 About.com. All rights reserved.