Nonprofit Law/501c3

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Question
QUESTION: My husband and I have a 501c3 set up for Music Ministry.  We are working with a band/group that is in music ministry that we want to partner with and let them use our 501c3. Would it be best to merge the two groups? If so what is the best way to do that? Or if it is better to just let them utilize the 501c3 what is the best way to do that? Thanks!

ANSWER: First we would need to ascertain if the activities and operation of that band/group are of the type that would be allowable for 501(c)(3) organizations.  If they are not, then you would be liable for taxes on their income or even your 501(c)(3) status could be jeopardized.  If they are, then you would have an option to have them merge into your present 501(c)(3) organization.  They can not "use" your 501(c)(3) organization status as long as they are an entity separate from your organization. I would be willing to draft the papers necessary, after consultations, but that would involve a substantial amount of time and is beyond the scope of the free work that I offer on this Allexperts.com.  If you want to hire me for such work, 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. For me to consider your individual situation and how the law applies, I would need to gather more information.

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

QUESTION: They play music at churches, colleges, local festivals with a focus on getting youth interested in music and dance.  They support Compassion International as well. I will email you about a merge. Thanks!

Answer
Ok.  I will respond to your email.

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.

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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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