You are here:

Nonprofit Law/Non-Profit Expenditures

Advertisement


Question
Can a non-profit buy material things such as beds, wheel chairs, etc. with donated funds.  I want to start a non-profit organization for my step son who has als.  I want to raise money for a) getting him the medical and everyday life quality things he needs; b) money for his children for education; c) money to help pay the bills, etc). d) raise money for furthering the education of other als patients children.  I live in Florida if that matters.

Answer
An organization established or operating to benefit one named person is not qualified as a 501(c)(3) organization. See pdf page 13 of http://www.irs.gov/pub/irs-pdf/p3833.pdf under the heading
"Charitable Class"
--start of excerpt  ---
The group of individuals that may properly receive assistance from a charitable organization is called a charitable class. A charitable class must be large or sufficiently indefinite enough that the community as a whole, rather than a pre-selected group of people, benefits when a charity provides assistance.
--end of excerpt  ---
More details are found starting at pdf page 6 of  http://www.irs.gov/pub/irs-tege/eotopick99.pdf

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

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.