Nonprofit Law/Gifts

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Question
QUESTION: We recently held our first annual meeting and a school reunion. The speakers were alumni of the non-profit association. There is one member on the board who feels we should give the speakers a gift paid for by the Alumni Association. They are part of the association and no other person got paid for their hard work for other tasks. What is proper etiquette or how the IRS view such donations to association members.

ANSWER: It depends whether the nonprofit is a 501(c)(3) organization or not. If it is, let me know.  If it is not, let me know under what subsection of section 501(c) the Alumni Association has been recognized by the IRS as.  What organization ran the meeting(s) where there speeches were delivered. 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. For me to consider your individual situation and how the law applies, I would need to gather more information.

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

QUESTION: We are not a 501 3c yet. We are in the process of filing paperwork. We provided an Annual Report for members, budget, projects for next year etc. We are trying to reply with IRS requirements for application purposes

Answer
Is the organization incorporated in the State?  What subsection of section 501(c) is mentioned in the articles of incorporation or articles of organization that would limit the organization's activities.  For example 501(c)(3) or 501(c)(7). In other words, is it a charity or a social organization? 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. For me to consider your individual situation and how the law applies, I would need to gather more information.

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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