Nonprofit Law/509(a)(2)

Advertisement


Question
QUESTION: I thought my HS Parents Club was a 501(c)(3) but our paper work says that it is a Public Charity Status 509(a)(2)...what is the difference?

ANSWER: You can put in the name and state in the IRS site at https://goo.gl/CSf9OL and you will see, if, as highlighted in the search they "Are eligible to receive tax-deductible charitable contributions".  If so, then they are a 501(c)(3) organization.

By the way, 26 U.S.C. 509(a)(2) is available at http://www.law.cornell.edu/uscode/text/26/509 and you will see in the first line of 509(a) that it only refers to "a domestic or foreign organization described in section 501(c)(3)".  I don't know where your "paper work" says that it is "it is a Public Charity Status 509(a)(2)" but I am pretty sure that, if that is a determination letter from the IRS, it also indicates that it is a 501(c)(3) organization.

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: It is listed on the paper from the IRS along the Identification Number, DLN # etc. In body of the paperwork it does say that we are exempt from Federal income tax under section 501(c)(3). Do we file at the end of the year with the IRS as a 501 or a 509?

Answer
A 509(a)(2), is not a private foundation.  A private foundation completes the Form 990-PF, whereas the 501(c)(3) organizations that are not private foundations, but are public charities, complete the Form 990, 990-EZ or 990-N annually.  Links to Latest Published  Form 990 Series Forms and Instructions
which ones to file (990/990-EZ/990-N) are available at http://goo.gl/GFVHE

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.