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Nonprofit Law/Questions Answered by Expert Harvey Mechanic

SubjectDate Asked
"dormant" 501 (c) (3)2/10/2012
  Q: Our non-profit group is suspending its services for the time being. We are wondering if we will ...
  A: Links to Form 990/990-EZ/990-N are available at www.irs.gov/charities/article/0,,id=152728,00.html ...
Question on Directors Right Of Communication2/10/2012
  Q: I am working as a volunteer Member of the Board of Directors of a 501c Non Profit Corporation in the ...
  A: The New York Not-for-Profit Corporation Law is available at http://goo.gl/lPmci and there is ...
990-N Asset test2/10/2012
  Q: In response to the answer you gave for my question of 2 days ago: The question dated August 15, ...
  A: The asset test for the 990 takes precedence over the asset test for the 990-N. In other words, an ...
HSA sponsered 5th Grade Boston Trip2/9/2012
  Q: My question is our HSA in South Glens Falls, NY 12803 established a fundraiser for our 5th graders ...
  A: I don't know what you mean by HAS but I am assuming that you are referring to a 501(c)(3) ...
501c3 - Multiple Checking Accounts2/9/2012
  Q: I am the treasurer for a committee which is part of a 501c3 organization. The 501c3 is a non-profit ...
  A: 501(c)(3) organizations may have separate checking accounts. It is not that there is any law ...
Distribution of dissolved 501(c)(3) booster club monies2/9/2012
  Q: Our booster club is being dissolved at the end of the season. I need to explain how, once all bills ...
  A: The organization may refund to parents fees that they paid that were not used, but not the other ...
high school music boosters/fundraising/student accounts2/9/2012
  Q: Our high school music boosters organization has been in existence since the 1980s but never obtained ...
  A: My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/9b573 and ...
Tax Write Off for the Use of Land2/8/2012
  Q: The 501(C)3 organization I work with is trying to negotiate the use of a parcel of land where they ...
  A: See IRS Publication 526 "Charitable Donations" which is available at ...
Nonprofit 1099 forms2/8/2012
  Q: Can a member of a nonprofit organization request a list of the 1099's issued to members for paid ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
How to disburse furniture2/8/2012
  Q: How should a non-profit company (NYC) who receives city and federal funding disburse of office ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Nonprofit 1099 forms2/8/2012
  Q: Can a member of a nonprofit organization request a list of the 1099's issued to members for paid ...
  A: A member may certainly make a request for the list of the 1099s but the organization generally would ...
501c32/8/2012
  Q: Church pastor dies, can 501c3 be transferred to another minister within the church? Is this legal? ...
  A: It appears that you have not reviewed your Articles of Incorporation and Bylaws. Before I could ...
501c32/8/2012
  Q: Church pastor dies, can 501c3 be transferred to another minister within the church? Is this legal? ...
  A: The IRS does not and has not granted 501(c)(3) status to an individual. See the IRS Publication ...
990-N conflict with I.R.S. vs. 9902/7/2012
  Q: I have been unable to find on the IRS.gov/eo website detail regarding the 990-N not having to apply ...
  A: I don't know which of my postings you are referring to but the IRS instructions for Form 990 has on ...
501c4 - spending requirements2/6/2012
  Q: We are a 501c4, Firefighters's Association in CA. The c4 was originally formed to support the ...
  A: For general information about 501(c)(4) organization see www.irs.gov/irm/part7/irm_07-025-004.html ...
Non-Profit Corporation Law2/5/2012
  Q: Is a 501 c(3) organization in California required to provide a members list to any requesting member ...
  A: It appears that the corporation is a California Public Benefit Corporation. http://goo.gl/Zm9Z6 ...
Educational theatre program for high school2/4/2012
  Q: We are a 501c3 public charity supporting theatre education at the local high school. We underwrite ...
  A: Well, it looks like Tim Tebow has influenced changes in rules and laws throughout the United States. ...
Educational theatre program for high school2/4/2012
  Q: We are a 501c3 public charity supporting theatre education at the local high school. We underwrite ...
  A: I don't know what you mean by the "Tim Tebow rule". I did find, --- Start of Excerpt --- In 2010 a ...
school public funds v. booster club funds2/3/2012
  Q: Do you know of any case law that discusses the nature of school public funds as opposed to booster ...
  A: Somebody recently asked me about the Utah Education Law and I explained that the particular law has ...
personal gains from non-profit club assets2/3/2012
  Q: Question A 501(c)(3) organization has allowed members to use the club assets (rock and gems ...
  A: Don't worry about how you classify the club owned assets. What you need to evaluate is not the ...
membership2/2/2012
  Q: We are a recovery hospital that was started by telephone employees and retirees. Our membership is ...
  A: See page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf under the heading "Charitable Class --start of ...
personal gains from non-profit club assets2/2/2012
  Q: Question A 501(c)(3) organization has allowed members to use the club assets (rock and gems ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
membership2/2/2012
  Q: We are a recovery hospital that was started by telephone employees and retirees. Our membership is ...
  A: Is the hospital organization under the California Public Benefit Corporation Law? If not, is it ...
Financial Data Part IX2/2/2012
  Q: I am confused on how to determine if my gross receipts will exceed $10,000.00 for my non-profit ...
  A: There would not be any penalties as long as the estimates are sincere now. See instructions to the ...
are rentals to members taxable income2/1/2012
  Q: I live at a 501c3 non-profit educational school. Members of the school pay rents for lodging on ...
  A: on page 9 of www.irs.gov/pub/irs-pdf/p598.pdf where we see "Rents from real property... are excluded ...
Nonprofit Booster Club2/1/2012
  Q: I am a board member for a high school band booster club. This booster organization is a 501(c)3. ...
  A: Unless you have a contract with the school that requires you to release such information to them, or ...
disbursment of fund2/1/2012
  Q: A corporation agrees to send a check to (not considered a donation for the corp,) a non-profit ...
  A: Revenue Ruling 56-304 has --- Start of Excerpt --- Organizations privately established and funded ...
Adding a dba to an existing Nonprofit1/31/2012
  Q: Harvey, We have a 501C(3) in good standing with both the Federal (IRS) and State (Washington). The ...
  A: You can certainly request the IRS to update their records and issue to you an updated exemption ...
Advance Ruling1/31/2012
  Q: So does the advance ruling means that the IRS will recognize you as a non-profit business business ...
  A: The Application for Exemption is at www.irs.gov/pub/irs-pdf/f1023.pdf and you will see on page 1 ...
Taxability of funds received from a medical fundraiser1/30/2012
  Q: When community organizations hold a medical fundraiser for an individual with a serious and ...
  A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. "Gross ...
starting a club1/30/2012
  Q: We have a bar and want to turn it into a club. What do we need to do.
  A: The only type of nonprofit organization that you may qualify for is a 501(c)(7) recreational or ...
Fundraising and tax concerns1/30/2012
  Q: Good morning, Thank you for taking the time to read my issue. We have a dear friend suffering from ...
  A: You would treat the activity like a normal business activity for tax purposes. Also you could not ...
Property Transfer1/28/2012
  Q: Recently our 501c(3) association inherited a residential property with an approximate value of ...
  A: Those that want your association to give the property to that partner are proposing a gift, which ...
Property Transfer1/28/2012
  Q: Recently our 501c(3) association inherited a residential property with an approximate value of ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
Director loan to public charity he serves1/28/2012
  Q: I am really getting confused by the IRC 4941, dealing with private foundations, and the law, or lack ...
  A: A conflict of interest is present whenever a director, and in some states an officer) has a ...
avoiding conflict of interest1/27/2012
  Q: I am in the process of starting a non-profit educational institution. In looking for space, one ...
  A: A conflict of interest is present whenever a director, and in some states an officer) has a ...
best practices administration vs disbursements1/27/2012
  Q: Harvey, Thank you for taking the time to answer my question. We are a small volunteer-run 501c3 ...
  A: You are welcome. I have in my profile that this free forum is only for general questions relating ...
public access to information1/26/2012
  Q: There is a non-profit 501-c(3) rail trail nearby that just signed a pipeline option for a large ...
  A: The pipline option will be recorded in the County Recorder of Deeds Office. That is a public ...
Love Offering1/26/2012
  Q: I've been searching for a clear cut answer to the Love Offering question. Our pastor gets a salary ...
  A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. "Gross ...
High School Booster Clubs1/26/2012
  Q: Our School Board recently required the High School Booster Club to dissolve their non-profit ...
  A: You are welcome. The particular section that you cited to deals with the standard of care that the ...
High School Booster Clubs1/26/2012
  Q: Our School Board recently required the High School Booster Club to dissolve their non-profit ...
  A: First I will inform you that the a school board does not, except by specific contract or specific ...
Non-profit youth sports team1/26/2012
  Q: If a family member sponsors their child/grandchild in a 501c3 organization, the family member is ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non-profit youth sports team1/25/2012
  Q: If a family member sponsors their child/grandchild in a 501c3 organization, the family member is ...
  A: As for any refund, that is controlled by state contract law and there would not be any difference as ...
Non Profit Track CLub1/25/2012
  Q: I am looking at signing my daughter up with a local Track Club. On there web site it says they are a ...
  A: Most universities and private schools are 501(c)(3) organizations and have requirements for fees for ...
Booster Reimbursements1/25/2012
  Q: I am the president of our band booster organization. My husband volunteered to pull the band ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Community College Foundations1/25/2012
  Q: In setting-up a foundation to solicit contributions for a community college (building fund, ...
  A: The foundation may be simply a part of the community college. A governmental unit, like a county ...
Church pass through to a 501c31/24/2012
  Q: When a church collects funds for specific charitable organization, ie., Physicians for Peace, is the ...
  A: Pass-Through Contributions As to pass-through funds, see the Google Book Version ...
church building usage1/24/2012
  Q: Can a small independent Christian church use under-utilzed space to temporarily house ...
  A: As long as the church maintains its substantial worship activities, then it can maintain its ...
Non-profit under a non-profit.1/24/2012
  Q: My church has 501 3(c) Status. Can I (as a missionary of the church)Start a foundation under the ...
  A: Your foundation could be a separate committee of the church and use the church's EIN (Employer ...
Catholic church employees compensation disclosure1/23/2012
  Q: I am a contributing member of a catholic church for 41 years. I have asked the Financial Committee ...
  A: 1. Complaints as to excessive compensation could go to your State's Attorney General's Office as ...
Renting from Executive Director of NP1/23/2012
  Q: I am trying to find some information about lease agreements and how they work in the NP world. The ...
  A: A conflict of interest is present whenever a director, and in some states an officer) has a ...
imoney recieved to a non profit org1/22/2012
  Q: is it a law that a non profit organization share with employees how money is distributed or if ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
amendments to a 501c31/20/2012
  Q: I have a question? A friend of mind has received his 501c3 determination letter. For some he only ...
  A: It appears that your friend filed a Form 1023 with the Internal Revenue Service which is the ...
Non-Profit Fundraising and Donation (s)1/20/2012
  Q: Harvey, We are a 501(c)(3)District of Columbia Tax-Exempt Ballet Studio. This summer we will have ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Transfer of asset1/17/2012
  Q: We were given some books, which the donor had appraised for his tax purposes. The donor suggested ...
  A: I am assuming, when you mention "not-for-profit" that you are referring to 501(c)(3) organizations ...
Converting 501c to for profit1/16/2012
  Q: Can you turn a 501c to a for profit? What taxes, if any, would you have to pay? Can you sell it ...
  A: States do not allow 501(c)(3) organizations to convert to for-profit entities except in rare ...
Non Profit Club fees1/16/2012
  Q: There is a nonprofit woodcarving club I am thinking of joining, but I noticed that when they collect ...
  A: See "Compliance Guide for Tax-Exempt Organizations (Other than 501(c)(3) Public Charities and ...
Non Profit Volunteer Guidelines1/16/2012
  Q: I have recently been elected to the Treasurer position in a local youth sports program--a 501 (c)3. ...
  A: The fee may be made, but then, if fees are given back after work, then that work is simply taxable ...
Rules for nonprofit competitive sports groups1/15/2012
  Q: My daughter plays asa softball and the fees are very costly. We are trying to coordinate ...
  A: There are no laws that require 501(c)(3) organizations to give reduction of fees or scholarships. ...
501c31/15/2012
  Q: Can 501c3 fund-raise for an individual that is a member of the 501c3?
  A: No. See www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is pdf page 7 of that pdf file) ...
Nonprofit for the Elderly1/14/2012
  Q: I have a question about nonprofit for the elderly. I am wanting to provide utility and medication ...
  A: If you want donors to be able to deduct donations and not to have your sales income, if any, taxed ...
Scholarships1/13/2012
  Q: 00 what forms do we need to file with IRS. ANSWER: You need advance approval from the IRS for your ...
  A: The link that I gave you was to Form 1023, application for example and referred you to that Schedule ...
Scholarships1/13/2012
  Q: 00 what forms do we need to file with IRS.
  A: You need advance approval from the IRS for your method of giving scholarships if you want assurance ...
dissolution of a 501(c)(7)1/12/2012
  Q: Is it legal to dissolve a 501(c)(7) social club incorporated in California merely by a board vote? ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Volunteer mileage reimbursement1/12/2012
  Q: We utilize volunteers to deliver home delivered meals, a necessary function of our business. They ...
  A: At www.irs.gov/newsroom/article/0,,id=164208,00.html we see, "Generally, amounts employers pay ...
not for profit1/12/2012
  Q: I am a new board member and treasurer of a HS football booster club in New York. Previous ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Booster Club Fundraiser1/12/2012
  Q: I am the president of a highschool booster club that supports the track team. We do a carwash as a ...
  A: 1. If the purchaser of the ticket decides later not to use the ticket still the same deduction for ...
removing nonprofit board members1/12/2012
  Q: Our 501(c)(3) has been notified that a member of our board has received donations, and not turned ...
  A: The Colorado Revised Nonprofit Act is available through http://tinyurl.com/5cwsx5 If you want to ...
removing nonprofit board members1/11/2012
  Q: Our 501(c)(3) has been notified that a member of our board has received donations, and not turned ...
  A: Do members (other than the Board of Directors) have a right to vote in the election of the Board of ...
Not for profit booster club never filed with IRS or state1/10/2012
  Q: I recently became the treasurer of a sport booster club which is filed as a not for profit ...
  A: I don't have the ability to send you a private email as allexperts.com does not give me your email ...
Not for profit booster club never filed with IRS or state1/10/2012
  Q: I recently became the treasurer of a sport booster club which is filed as a not for profit ...
  A: Even if the organization had received 501(c)(3) organization status previously, if it failed to file ...
Transfer of Funds1/9/2012
  Q: We exectuted a fundraiser a year ago for a charity we created. Our 501c3 status was still in ...
  A: It appears that the donations originally did not go to your 501(c)(3) organization but to another. ...
donation1/8/2012
  Q: I donated 2000.00 to a cheer organization and just recently have come to find that thier account has ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
churches1/8/2012
  Q: Can a church charge rent on the house behind the church ?
  A: Yes, but that might effect the church's real property tax exemption. I have in my profile that this ...
Membership Information1/6/2012
  Q: I am the Soccer commissioner of a 501(c)3 youth sports league in Texas. Recently we had some ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501c3 fiscal year change1/6/2012
  Q: If I understand a previous answer correctly, a 501 c3 organization doesn't have to file form 1128 to ...
  A: When two conditions in a law are connected by "and" that means that both conditions must apply. ...
501c3 fiscal year change1/6/2012
  Q: If I understand a previous answer correctly, a 501 c3 organization doesn't have to file form 1128 to ...
  A: The Form 990-N was established after the time that the particular revenue ruling was issued. It ...
501c3 fiscal year change1/6/2012
  Q: If I understand a previous answer correctly, a 501 c3 organization doesn't have to file form 1128 to ...
  A: You are correct that you were required to file an information return as you were required to file ...
money distribution1/5/2012
  Q: I belong to a non-profit that helps women in transition. Typically we have women fill out an ...
  A: Revenue Ruling 56-304 has --- Start of Excerpt --- Organizations privately established and funded ...
Non-Profit Newsletters1/5/2012
  Q: I'm the editor of a quarterly fraternity alumni newsletter and am seeking ways to fund the ...
  A: 501(c)(3) organizations like the fraternity foundation are only to engage in activities that are ...
Private bidding or public bidding1/3/2012
  Q: We are a non profit 501(c)(3) organization.We will purchase a building by using New Jersey Economic ...
  A: I don't think that the bond financing authority would request an organization, that does not yet ...
Private bidding or public bidding1/3/2012
  Q: We are a non profit 501(c)(3) organization.We will purchase a building by using New Jersey Economic ...
  A: I don't think that you meant "in the meantime" to refer to building before you have completed the ...
501c3 investing in precious metals1/3/2012
  Q: Is it lawful for a 501c3 to invest in precious metals? Is it lawful for such entity to hold ...
  A: I am assuming that you are referring to the purchase of the metals or coins at or near the present ...
religious charitable1/3/2012
  Q: what are the requirements for becoming a religious charitable non-profit 501(c)3. Thank you, deby
  A: Generally, under tax law and state nonprofit corporation law, the organization would give its ...
bylaws in question1/3/2012
  Q: I serve on the executive board of a youth football league in Florida. We have been operating under ...
  A: In every state, the Articles of Incorporation will take precedence over the bylaws. For example a ...
non=profit corporation rules and regulations1/2/2012
  Q: Can the board of directors legally make changes to the organizations rules and regulations without ...
  A: The Board of Directors may, by corporate resolution, pass changes to a nonprofit's bylaws or other ...
disbursing donations upon dissolution12/29/2011
  Q: Our 501(c)(3) community choir is disbanding. 2 years ago, a member donated $1,000.00 for scholarship ...
  A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
Church to Gift Car to Needy Family12/28/2011
  Q: I would like to know what are the legal implications for a 501(c)3 church that wants to first ...
  A: 1. See www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is pdf page 7 of that pdf file) ...
Services not yet rendered12/28/2011
  Q: Can a non-profit agencies sue for services not yet rendered if their representative breached part of ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Aggressive approaches when soliciting for non-profits12/28/2011
  Q: I am formulating an aggressive marketing strategy for a non-profit in the Ohio area. Are there any ...
  A: You would also need to consider your state's charitable solicitation regulations. ...
proxies12/28/2011
  Q: i am a resident of nys. our board goes house to house collecting unsigned proxies and then use the ...
  A: Threaten the Board to follow the law or else you could then file an action in court for an order. ...
501c3 organization regarding donations used for upgrading personal property of the owner of the non profit12/27/2011
  Q: What is the legality of the following situation? Someone starts a 501c3 organization to raise money ...
  A: 1. Internal Revenue Code section 501(c)(3) which is available at: ...
Non Profit vs. For Profit12/26/2011
  Q: My husband and I want to start an organization to assist with the funding of international ...
  A: It appears that you expect that the gross income from the t-shirt sales, even when considering only ...
Private Non Profit Building12/26/2011
  Q: I work for a Private Non Profit organization. They received federal grants for building and upgrade ...
  A: Federal grants sometimes have restrictions so first I would need to read the text of the contract as ...
Non-Profit Co-op12/25/2011
  Q: Mr. Mechanic, I am the President of a newly minted 501(c)(3). We formed for the purpose of creating ...
  A: You can certainly propose your "compensation" arrangement to the IRS in your 1023 exemption ...
Catholic church employees compensation disclosure12/24/2011
  Q: I am a contributing member of a catholic church for 41 years. I have asked the Financial Committee ...
  A: Generally churches are not required to file federal or state income tax returns. Therefore, they ...
Reporting Sexual Fondling of Minor at Youth Event12/22/2011
  Q: I was in a discussion with someone from New Jersey about a minister's obligation to report a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Nonprofit under LLC12/22/2011
  Q: I am going to be starting up a LLC. I would like to also establish an non-profit program. Can my ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Conflict of interest12/21/2011
  Q: Our gymnastics booster club used to run in complete violation of 501c3 status. The last ...
  A: One board seat by a for-profit gym is allowed as long as the gym or the insiders of that for-profit ...
Can a 501(c)(3) also have a Subchapter S Corp12/21/2011
  Q: Our soccer club is reforming as a 501(c)(3), and I just found out that they are going to include a ...
  A: A 501(c)(3) organization may own or have partial ownership of a for-profit entity, but then it may ...
Refund of Donation12/20/2011
  Q: Okay, this one might be a tough one. I am part of a consortium that is not yet a non-profit. The ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
IRS revocation of tax exempt status12/20/2011
  Q: Mr. Mechanic, I am trying to assist a small 501c nonprofit that recently received notice from the ...
  A: www.irs.gov/newsroom/article/0,,id=240239,00.html has a link to the list of the organizations that ...
Receiving donations in exchange for goods12/19/2011
  Q: Our 501(c)(3) exists to empower college students to make a difference. Particularly, we guide ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Requested Contributions, Some Do Not, Ways to Raising Funds For Those Who Do Not12/18/2011
  Q: Can you tell me if you know of any way a booster 501(c)(3) public charities can encourage those who ...
  A: A 501(c)(3) booster organization does not, by definition, produce activities, but, instead support ...
Church daycare & minimum wage12/17/2011
  Q: Our church runs a daycare as a ministry of our church as does another church in our small town. ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Fundraising for a 501(c)3 youth soccer team12/16/2011
  Q: I am the treasurer of a youth soccer program that is a not for profit. In the recent year ...
  A: I do not understand whether the 501(c)(3) organization has more than one team, but it appears that ...
stolen donations or ethics?12/16/2011
  Q: I suppose this is ethics? a kind donor (member of club) gave a truck load of white china to a club ...
  A: Oh, now you inform me that the property was unloaded at a member's house. I had thought earlier ...
stolen donations or ethics?12/15/2011
  Q: I suppose this is ethics? a kind donor (member of club) gave a truck load of white china to a club ...
  A: Unless the 501(c)(3) organization authorized someone to accept and also sell items for the ...
501(c)(3) Donating to a 501(c)(4)12/14/2011
  Q: My questions are: 1. Can a 501(c)(3) Foundation (not private) donate funds to a 501(c)(4) Social ...
  A: A 501(c)(3) organization may make a grant to even a for-profit entity if that for-profit entity is ...
love offering12/13/2011
  Q: we recently started speaking at different churches. Some wrote us checks from the church and others ...
  A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. "Gross ...
LLC and 501 c 312/13/2011
  Q: I would like to know whether, in Ohio, an LLC formed by artists can convert to 501 c 3 status. If ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Amend by laws of NY Not for Profit12/12/2011
  Q: Can a NY state not for profit corporation board amend the bylaws of the not for profit without ...
  A: §602 provides: --- Start of Excerpt --- (c) Any by-law adopted by the board may be amended or ...
Amend by laws of NY Not for Profit12/12/2011
  Q: Can a NY state not for profit corporation board amend the bylaws of the not for profit without ...
  A: Your initial question was "Can a NY state not for profit corporation board amend the bylaws of the ...
Amend by laws of NY Not for Profit12/12/2011
  Q: Can a NY state not for profit corporation board amend the bylaws of the not for profit without ...
  A: The New York Not-for-Profit Corporation Law is available at http://goo.gl/lPmci and specifically ...
Resident vs Nonresident Rates12/11/2011
  Q: South Venice Beach is a large subdivision in south west Florida. The subdivision owns a 1/4 mile of ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
board member term limit12/11/2011
  Q: Is there a limit of how long a person can serve on a board? Also, a limit to how many family members ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Board Members and Conflict of Interest12/10/2011
  Q: I am a Director of Concessions for a non-profit youth sports association. I am not on the Board of ...
  A: A conflict of interest is present whenever a director, and in some states an officer) has a ...
loss of work12/10/2011
  Q: I had recently been working in a theatre that is a non profit I was an outside contractor supplying ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
love offering12/9/2011
  Q: we recently started speaking at different churches. Some wrote us checks from the church and others ...
  A: See IRS Publication 517 "Social Security and Other Information for the Members of the Clergy and ...
Nonprofit raising money to restore a building12/8/2011
  Q: Can a nonprofit raise money to restore a privately owned, historically significant building? If ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501(c)(3)12/8/2011
  Q: Good afternoon. I would appreciate an answer if possible regarding taking over someone elses 501c3, ...
  A: If the corporation does not have voting members and only the members of the organization's Board ...
non-profit organizations with same board12/8/2011
  Q: Is it legal for two entitites to operate under the same board and executive director, share the same ...
  A: Having similar of even identical boards and sharing facilities are not a problem as long as the ...
501(c)(3) distribution of funds12/8/2011
  Q: I am involved with a 501(c)(3) for which we use the organization's name and facilities to run a ...
  A: When a 501(c)(3) organization determines grants based upon labor then it is opening a can of worms. ...
stipend vs wages12/8/2011
  Q: What is the difference between a stipend and a wage? Does it really only boil down to whether a ...
  A: The words "stipend" is a vague work are is not, therefore, used by the IRS for tax purposes. The ...
Dissolution of Church and Assets12/8/2011
  Q: Is it legal and ethical for an independant Pastor to close a church, liquify it's assets and then ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
courtesy listing on a dog rescue organization12/8/2011
  Q: can you tell me the rules of a 501(c)(3) animal rescue putting a courtesy listing of someone animal ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non Profit rental12/7/2011
  Q: I live in a house that was I was renting from my employer. A non profit entitiy purchased the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Booster Organization Dues12/7/2011
  Q: I understand that the booster club, as a 501c3, can charge dues for membership. To the extent these ...
  A: I hope that I did not put in one of my answers that a 501(c)(3) organization can not enforce an ...
"Teams" Within Band Organization (For Funds Distribution)12/7/2011
  Q: You have a lot of patience as the same questions get asked repeatedly! I hope this is a different ...
  A: Separate accounts are allowed, but only for funds that come into that account from family dues or ...
50th class reunion responsibility12/7/2011
  Q: As chairperson of our 50th class reunion, what is my responsibility for monies collected. The ...
  A: First I would need to know what entity it was, in other words a corporation or unincorporated ...
cash on hand12/6/2011
  Q: Is there a limit to how much cash a nonprofit can have such as a VFW or American Legion, and is it ...
  A: It appears that you are referencing 501(c)(19) organization which the IRS discusses at ...
Non profit and for profit12/5/2011
  Q: Can the founder/president of a Non-Profit 501(c)(3) give a loan to a For-Profit where he/she is also ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
How can I buy a non-profit school?12/5/2011
  Q: I have worked at this non-profit, private, special education school in California and now I would ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Definition of Employment12/4/2011
  Q: I am developing a non-profit organization with a heavy volunteer base. I would like for my ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal tax ...
Non-profit youth athletic clubs12/4/2011
  Q: my 18 year old daughter plays Club volleyball for a non-profit club. We signed a financial contract ...
  A: You are welcome. As that 501(c)(3) organization has received an IRS exemption determination it has ...
What type of non-profit to form?12/2/2011
  Q: We are a small 501(c)(4)service organization that has decided to set up a more or less separate ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Form 1023, Dchedule D12/1/2011
  Q: Adult Education program of public school district includes a daily class for adults with ...
  A: The instructions to Form 1023 is at: www.irs.gov/pub/irs-pdf/i1023.pdf and, specifically, the ...
501c3 and fraternities12/1/2011
  Q: I am interested in applying for 501c3 status as a charitable organization that provides services, ...
  A: Correct. There are "service" fraternities that would do charitable work and it would then qualify as ...
qualification for member of non profit board11/30/2011
  Q: Can someone arrested for burglery remain on the board for a non profit organization? If they cannot ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non-profit youth athletic clubs11/30/2011
  Q: my 18 year old daughter plays Club volleyball for a non-profit club. We signed a financial contract ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501 c 3 - can we require member to be part of school band program?11/29/2011
  Q: I am on the board of a 501 c 3 organization that is a youth wind and percussion ensemble. We accept ...
  A: As to federal law, a 501(c)(3) organization may pass regulations, subject to any of the students ...
501 c 3 - can we require member to be part of school band program?11/29/2011
  Q: I am on the board of a 501 c 3 organization that is a youth wind and percussion ensemble. We accept ...
  A: It is discrimination, but not illegal discrimination. An organization may legally discriminate for ...
Refunding a Donation11/28/2011
  Q: My wife and I gave money to my daughter's soccer team booster club during their fund raiser. A week ...
  A: A 501(c)(3) organization may refund a donation. For refunds of donations where a deduction was taken ...
501c3 and fraternities11/28/2011
  Q: I am interested in applying for 501c3 status as a charitable organization that provides services, ...
  A: See: http://bquot.com/80f where the IRS has, "an organization may properly have a purpose to ...
Congregation Christmas Gift to Pastor11/28/2011
  Q: We have been soliciting the congregation for money to be given to the Pastor and his family. The ...
  A: That is such a minor use of church resources that the IRS would not be concerned as that would ...
Scholarship fund11/28/2011
  Q: My husband and I would like to start an annual scholarship fund in memory of a dear friend meant to ...
  A: You would only have to set up a foundation which is approved by the IRS if you want to able to claim ...
Congregation Christmas Gift to Pastor11/28/2011
  Q: We have been soliciting the congregation for money to be given to the Pastor and his family. The ...
  A: It is proper if the church itself is not using its own resources in the solicitation. If the ...
distribution of funds11/26/2011
  Q: Is a non-profit organization required to distribute a specific per cent of the funds remaining after ...
  A: Are you referring to a public charity? If not, are you referring to a private foundation? If you ...
Non Profit Hiring11/26/2011
  Q: Can a non profit college radio station fire non active students (didnt take a class this semester) ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Scholarship fund11/23/2011
  Q: My husband and I would like to start an annual scholarship fund in memory of a dear friend meant to ...
  A: Yes. If you set up a private foundation which has required clauses for 501(c)(3) organizations you ...
Aid organization expenses11/21/2011
  Q: We are a non profit aid organization.We often arrange fundraising events (we don't use a ...
  A: There is no limitation by the IRS specifically as to the source of the funds for your necessary ...
Aid organization expenses11/21/2011
  Q: We are a non profit aid organization.We often arrange fundraising events (we don't use a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Reimbursement for Internet access11/10/2011
  Q: Hey again, Is it allowable for a 501(c)(3) to reimburse an officer / director for Internet access ...
  A: I am assuming that the officer is using the internet at home not only for the 501(c)(3) ...
Employee Christmas party11/10/2011
  Q: Good morning! My wife and I run a 501(c)(3) special needs preschool, and we were wanting to throw a ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
Designated or Restricted Donations11/9/2011
  Q: Are charities required to honor donor designations (for example, for "flood relief"), or are the ...
  A: Charities are required to honor donor designations if the charity accepts the funding with the ...
board member being hired as an employee11/9/2011
  Q: I live in a condo non profit. We have an owner who ran for the board and won. He used to be our ...
  A: I have in my profile that this free forum is only for relevant federal exempt issues of 501(c)(3) ...
Property Valuation11/8/2011
  Q: Our non-profit acquires and sells property for urban renewal. My old accountant told me that I ...
  A: The Instructions for Form 990 are at www.irs.gov/pub/irs-pdf/i990.pdf and on the right column of ...
Who can be a non-profit Booster Club?11/8/2011
  Q: My children go to a private school that is not a non-profit, as of yet. We are looking into creating ...
  A: Yes, you could set up a 501(c)(3) booster organization. Make sure that the profit entity does not ...
501 c 7 dissolution11/8/2011
  Q: Is there a specific reference in the IRS code that explains the requirements of the distribution of ...
  A: The IRS writes about 501(c)(7) organizations at www.irs.gov/irm/part7/irm_07-025-007.html ...
Supporting Organization Type11/7/2011
  Q: I am the treasurer of a band boosters club that supports the high school band. It is an approved ...
  A: The term "supporting organization (1,2, or 3)" is a term that refers to particular type of exempt ...
Selling A Church11/7/2011
  Q: Can a pastor sell a church without the knowledge of it's members? ANSWER: I have in my profile that ...
  A: http://law.justia.com/illinois/codes/chapter65/2280.html has the Illinois General Not For Profit ...
Church Charitable Gifts11/6/2011
  Q: Our church gives money to needy families. Are these needy families required to claim this money on ...
  A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. "Gross ...
Scholarships and non profits11/3/2011
  Q: The St Thomas More Catholic Newman Center would like to give a deserving student a scholarship for a ...
  A: You need advance approval from the IRS for your method of giving scholarships if you want assurance ...
bending all the rules (part 2)11/3/2011
  Q: i wasn't clear on my question. there are 6 directors on the board for this 501(c)3 organization. ...
  A: You are welcome. If you are a voting member of the organization then you would have certain rights ...
Pure non-profit, versus for-profit with non-profit affiliate11/3/2011
  Q: Mr. Mechanic, I would like to start a business which sells a product and gives all profits to ...
  A: Generally the IRS does not grant exemption to businesses that sell products. They only grant ...
Selling A Church11/3/2011
  Q: Can a pastor sell a church without the knowledge of it's members?
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
bending all the rules11/3/2011
  Q: i volunteer at a local non profit art center. the 'president' of the board thinks she owns the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Requirements on Bids for 501(c)(3) building an animal shelter11/2/2011
  Q: We are a new 501(c)(3) organization. We are a Humane Society. We want to build an animal shelter ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
corporation with 501c3 as part of its portfolio?11/2/2011
  Q: I'd like to start some form of corporation that would include a 501c3 organization within it as well ...
  A: Usually, when the for-profit activities would give more than 15% of the total gross income, the ...
Stipended Regulations11/2/2011
  Q: I have worked for a non profit for a number of months. They work people up to 100 hours a week. ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
IRS Form 99011/1/2011
  Q: Why do you need to subtract the portion of total contributions by each person included under gifts, ...
  A: In calculating the public support you would need to use the 2% rule which the IRS discusses ...
Non-profit spending11/1/2011
  Q: Are non profits organizations allowed to spend the money they receive, in donations, on ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Booster club for a 501(c)(3)10/31/2011
  Q: We are forming a booster club to support our local Civil Air Patrol Squadron which by extension is ...
  A: I don't know what you mean for "by extension", but I am assuming that the local Civil Air Patrol is ...
Where to start and are we a 501 c 7?10/28/2011
  Q: I am a member so an artist guild that started in 2007 as part of another group, two years ago we ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501c3 by state10/27/2011
  Q: hopefully you can answer some of these for me! I am wondering, in general, do you know if it would ...
  A: Ok. If you do not have a good reason to be in California, for exameple that you have some U.S. ...
501c3 by state10/27/2011
  Q: hopefully you can answer some of these for me! I am wondering, in general, do you know if it would ...
  A: It depends first upon where you will be "doing business". Are you going to be having physical ...
Permitted use of the word "foundation"10/26/2011
  Q: You recently answered a question concerning what kinds of non-profits can call themselves a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
DBA for 501c310/26/2011
  Q: I have a California nonprofit duly recognized by the IRS as a 501 c 3 public charity. The name of ...
  A: You may file a fictitious name statement but then your official name does not change. You would ...
Booster Club Membership10/26/2011
  Q: Harvey, I am on the BOD for a 501(c)(3) booster club and membership dues are on the table. They ...
  A: My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/9b573 and ...
Volunteer Compensation10/26/2011
  Q: Is there a way to compensate Directors/Coaches of an amateur athletic sports organization and still ...
  A: I will clarify. If you declare the compensation to Directors and coaches as compensation then there ...
Domestication and 501c310/25/2011
  Q: I was wondering if a 501c3 nonprofit organization that is incorporated in the state the Georgia, and ...
  A: I am not a member of the Florida Bar. I am a member of the New York Bar. I have in my profile ...
Domestication and 501c310/25/2011
  Q: I was wondering if a 501c3 nonprofit organization that is incorporated in the state the Georgia, and ...
  A: No problem. I am sorry I did not explain better earlier. The normal procedure would be that a FL ...
Domestication and 501c310/25/2011
  Q: I was wondering if a 501c3 nonprofit organization that is incorporated in the state the Georgia, and ...
  A: Reincorporate" means that an organization, that is already incorporated, does another ...
Volunteer Compensation10/25/2011
  Q: Is there a way to compensate Directors/Coaches of an amateur athletic sports organization and still ...
  A: It is a contradiction, under tax law to call persons who are expecting compensation by the word ...
cheerleading booster club funds10/25/2011
  Q: I recently had an account with a local competitive cheerleading facility booster club. When we left ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Unincorporated Association10/23/2011
  Q: Would like to form a faith based Unincorporated Association we will not be seeking tax exemption ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
sale of a non-profif corp.10/22/2011
  Q: I have created and established a non-profit corporation. As it is in an infancy stage, I have not ...
  A: Generally the state law requires nonprofit corporations to have clauses in their Articles of ...
501c3 Elections10/22/2011
  Q: Two questions sir. 1. We are a California 501c3 and run a youth sports program. Our bylaws state ...
  A: I am assuming that there is nothing as to the date of the meeting in the Articles of Incorporation. ...
After School Program10/21/2011
  Q: I volunteer with a non-profit that works in child development in Portland Oregon. We have a summer ...
  A: You are welcome and thank you for that generous feedback. Housing is considered generally as a ...
After School Program10/21/2011
  Q: I volunteer with a non-profit that works in child development in Portland Oregon. We have a summer ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Sale of a Property10/21/2011
  Q: We are a non profit 501 (c) (3) public charity described in 509 (a)(2).We are based in ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Volunteer in a church/religious organization10/21/2011
  Q: A religious organization wishes to ask someone to volunteer as the sexton of the church. I have ...
  A: You are correct as long as the sexton is not an independent contractor. See ...
office/ condo10/20/2011
  Q: I saw your opinion regarding 501 (c) (3) being able to purchase condo to use as office. We are a 16 ...
  A: Yes, I would be willing to represent the 501(c)(3) organization as to the acquisition. If you want ...
Competitive Taekwondo Team Booster Club10/19/2011
  Q: The parents of our local taekwondo school whose children have joined the competition team (2 levels) ...
  A: 1. You do not need to "foster national or international sports competition" or "support and develop ...
501c3 Board relationships to other nonprofits10/19/2011
  Q: Can the board members of a nonprofit public housing authority form a 501c3 in which they are also ...
  A: Yes. The board members of a nonprofit public housing authority may form a 501c3 in which they are ...
501c(3) Bylaws10/18/2011
  Q: If a non-profit establishes a for-profit business for the purpose of selling franchises as a source ...
  A: Sorry. I did not know that you had already obtained from the IRS 501(c)(3) organization status. ...
501c(3) Bylaws10/18/2011
  Q: If a non-profit establishes a for-profit business for the purpose of selling franchises as a source ...
  A: The IRS does not require bylaws to include all specific purposes of the organization. Many bylaws ...
fundraisers10/18/2011
  Q: Our non profit booster club recently held a fundraiser at our teams home gym and agreed to give them ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Gift to resigning pastor10/18/2011
  Q: The pastor of our church has resigned and the board wants to give him the church car as a gift. The ...
  A: I suggest that the congregation may get together a fund for the retiring pastor. It could purchase ...
not profit not following bylaw, what can we do?10/17/2011
  Q: if a non-profit does not follow their bylaws, I mean literally non even a letter is being followed. ...
  A: 1. If you are a Board member you may have standing to deal with the matter. Let me know if you are ...
501c3 not a valid corporation under state law10/14/2011
  Q: The president/founder of a 501c3 charity has been unreachable for a few weeks. I looked up the ...
  A: The IRS does not care much about the details of a particular state's corporation code. and whether a ...
501c3 not a valid corporation under state law10/14/2011
  Q: The president/founder of a 501c3 charity has been unreachable for a few weeks. I looked up the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501c3 not a valid corporation under state law10/14/2011
  Q: The president/founder of a 501c3 charity has been unreachable for a few weeks. I looked up the ...
  A: Complaints could go to your State's Attorney General's Office as that office generally oversees ...
Payments to officers10/13/2011
  Q: I have been asked to do some bookkeeping for a small charitable organization. The president and ...
  A: See www.irs.gov/charities/article/0,,id=131083,00.html --- Start of Excerpt --- An exempt ...
Return of Donated Items10/13/2011
  Q: Over the past 11 years, I have donated a lot of old Boy Scout memorabilia (valued at $25-30,000) to ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
In-Kind Gift Valuations10/13/2011
  Q: I understand there is a law that says NPOs cannot give the donor the value of an In-Kind Donation. ...
  A: See the IRS Publication "Charitable Donations --- Substantiation and Disclosure Requirements" ...
Health Insurance Benefits for a Volunteer10/11/2011
  Q: I have a volunteer position at my church. This position has a job description and I have a manager ...
  A: A church certainly may give you fringe benefits if the amount of the benefit is no more than the ...
non-profit10/11/2011
  Q: I hope this question has not been answered. I searched your answers and didn't find it. I am ...
  A: What is going to happen to the net profits (of around $20,000) annually? After you give me that ...
501 (c)(3) for a Girls Softball Team10/11/2011
  Q: The coach for my daughter's 8u softball team wants to create it into a 501(c)(3) status. I know that ...
  A: A charitable organization needs to be "non profit" in order to be qualified for 501(c)(3) ...
Membership dues and tax deductibility10/11/2011
  Q: I am a member of a 501(c)3 organization. This organization is a community choir. The choir has a ...
  A: You are welcome www.irs.gov/newsroom/article/0,,id=240239,00.html has a link to the list of the ...
Membership dues and tax deductibility10/11/2011
  Q: I am a member of a 501(c)3 organization. This organization is a community choir. The choir has a ...
  A: As to charitable deductions, see IRS Publication 526 "Charitable Donations" which is available at: ...
USING PARENTS 501C-3 IN ANOTHER STATE10/11/2011
  Q: MR. MECHANIC I WOULD LIKE TO KNOW HOW DIFFICULT IT WOULD BE TO USE MY PARENTS 501(C)(3) ...
  A: Every state requires a registration, similar to filing Articles of Incorporation, which is usually ...
Booster club wants 501c10/11/2011
  Q: Our public school athletic booster club was formed several years ago and they would now like to ...
  A: It appears that the booster club is not yet incorporated or otherwise organized as a separate entity ...
Christmas Party10/10/2011
  Q: Are there any regulations that forbid a non-profit-501(c)from sponsoring an event where alcohol is ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501c3-1910/9/2011
  Q: Legion and VFW Posts have a 19 designation. My company is |Veteran owned, operated and for Veterans ...
  A: See IRS Publication 557 "Tax Exempt Status for Your Organization" available at: ...
High School Band Charity10/9/2011
  Q: Our High School Band has a non-profit charity to support the overall operations of our group. There ...
  A: A charity has a right not to accept earmarked donations and has right to accept donations only on a ...
American Legion Newsletter10/8/2011
  Q: My Legion Post, a 501c corporation, publishes a newsletter. We sell space for business card ads. ...
  A: Regarding donations, the sponsors would not be able to deduct the $60 as you are selling space in ...
Non-profit organization advertisitn10/8/2011
  Q: I belong to a non-profit organization Florida Association for Home and Community Education. We ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
Paid Holidays for Non Profit Organizations?10/7/2011
  Q: Does an employer {Catholic Non Profit Organization}, have to by Law either give a PAID Employee the ...
  A: Boards of Directors decide generally what the compensation package is for employees and that should ...
non-profit fundraising for other cause10/7/2011
  Q: Can our 501 c 3 that is setup for the purpose of servicing children with special needs raise funds ...
  A: You are asking if it is ok to use half the funds for "us". I don't know who you are referring to as ...
Designated Gifts10/6/2011
  Q: In the state of VA, a missions non profit agency received a gift from a church made to the agency ...
  A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
501(c)(3)10/6/2011
  Q: How do I find out the status of an association that claims to have a 501(c)(3) status? Is there a ...
  A: http://www.irs.gov/app/pub-78/ is the searchable IRS list. If you don't find it there, let me know ...
Booster Club Status10/6/2011
  Q: If a booster club for a public high school sports team, which has never applied for a 501c3 ...
  A: The IRS considers such an organization to be a regular, for profit entity. See the IRS Publication ...
Booster Club Status10/6/2011
  Q: You asked, "Is the booster organization incorporated separate from the school board?" It is ...
  A: You wrote earlier: --- Start of Excerpt --- f a booster club for a public high school sports team, ...
Expantion into states other than state of incorporation10/5/2011
  Q: We are a non-profit corporation incorporated in the state of Pennsylvania. Right now we are looking ...
  A: Your corporation would need to register with the Corporations division of Michigan and New York as a ...
Booster Club Status10/4/2011
  Q: If a booster club for a public high school sports team, which has never applied for a 501c3 ...
  A: Is the booster organization incorporated separate from the school board? If not, is it part of the ...
School Choir Accounts10/4/2011
  Q: Our Choir Boosters are seeking clarification. We are being told that we are no longer allowed to ...
  A: You are welcome. I have done this for a long time and many of the questions are similar and, ...
School Choir Accounts10/4/2011
  Q: Our Choir Boosters are seeking clarification. We are being told that we are no longer allowed to ...
  A: "Income" includes any benefits given for work, whether those benefits are cash or property items. ...
excess funds10/4/2011
  Q: I am currently the head coach of a select travel baseball team in Texas. We are recognized as a ...
  A: The Texas Code sections for "Nonprofit Corporations" as of 2009 are available at: ...
Gym Owner Influence Over Gymnastics Boosters Group10/4/2011
  Q: My daughter's gymnastics Boosters group is working towards filing for 501(c)(3) status. The problem ...
  A: www.irs.gov/charities/charitable/article/0,,id=123297,00.html has: ---Start of Excerpt-- A section ...
School Choir Accounts10/4/2011
  Q: Our Choir Boosters are seeking clarification. We are being told that we are no longer allowed to ...
  A: Students may certainly work to earn money for their expenses but that work is taxable as regular ...
Fundraising Drive "Prizes" Taxable?10/4/2011
  Q: Harvey, Thank you so much for providing this service, your insight and expertise is much ...
  A: You are welcome. The organziation would complete and file form 1099-Misc for any payments valued ...
excess funds10/4/2011
  Q: I am currently the head coach of a select travel baseball team in Texas. We are recognized as a ...
  A: Federal law does not require an 501(c)(3) organization to reveal to the public bank statements of ...
US donation to 501(c)3 then donated to foreign charity10/4/2011
  Q: one in Canada, and one in the US that is 501(c)3. A US citizen wants to donate to the charity in ...
  A: No. The US charity needs to retain discretion as to the use of donated funds. ...
Refunds for Band Fees10/4/2011
  Q: Our public high school's band has a booster organization which requires all students to pay $425, in ...
  A: No. Many 501(c)(3) organizations, like universities, refund fees. Universities publish their ...
Elected public official & 501(c)(3) Board of Directors10/4/2011
  Q: Is it appropriate for an elected public official (local government) to also serve on the Board of ...
  A: See http://bit.ly/1cI2DC for regulations for all types of nonprofit organizations as to political ...
Booster Club Participation9/20/2011
  Q: My child attends a private school in Oklahoma. Due to some past, unpleasant experiences regarding ...
  A: Absent some agreement between your family and the booster organization in which you made some ...
Funds to portion of team at certain level?9/19/2011
  Q: Mechanic, Our gym booster club has recently received non-profit status. I completely understand that ...
  A: I don't see any problem as long as the funds that are given to the leval 7 or higher gymnasts are ...
Rewards for non-profit fundraiser9/19/2011
  Q: I have read your past answers and summary 501c3 documentation with interest and greatly appreciate ...
  A: It is still work for benefits (10% of gross as commission). Therefore, the IRS would treat the work ...
NonProfit Fundraising9/18/2011
  Q: We belong to a local soccer league that is a 501c3 organization. They recently held a fundraiser ...
  A: It appears you have been wrong, as the prohibitions and regulations relating to individuals ...
Church Endowment Regulations9/16/2011
  Q: Our church is a 501(3)c and would like to ask donors to contribute to a fund. Is it legal to call ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Donation to 501(c)(7)9/16/2011
  Q: I am on the Board of Directors of a 501(c)(3) public charity (not a foundation) organized primarily ...
  A: No. A 501(c)(3) organization may not give a donation to a 501(c)(7) as, generally such ...
designated donations9/15/2011
  Q: can donations made to a 501c3 church designated for a specific purpose, such as 'sunday school', ...
  A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
501c3 Interference9/15/2011
  Q: I am part of a 501c3 that works with student athletes and operates to grow the sport. I've been ...
  A: As far as I know, there are no laws specific to nonprofits in the area about which you are ...
non profit scholaship funding9/14/2011
  Q: Our non-profit preschool offers scholarships to students. Criteria for acceptance utilizes the ...
  A: I have not seen any IRS regulations prohibiting funding from scholarships coming from tuition and ...
membership dues deduction9/14/2011
  Q: In a previous post you mentioned that membership dues paid to a 501(c)(3) organization may be ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
scholarship funds9/14/2011
  Q: My husband and I want to set up a scholarship fund for a school overseas. We would be the only ...
  A: If you have U.S. income and would want to be able to deduct donations and not to have your income, ...
Name change of unincorporated Non Profit9/14/2011
  Q: How do I change the name of an unincorporated nonprofit registered in CA that has its own EIN ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Name change of unincorporated Non Profit9/14/2011
  Q: How do I change the name of an unincorporated nonprofit registered in CA that has its own EIN
  A: Has the nonprofit received a determination letter from the IRS that the organization is exempt ...
Booster bought equipment9/13/2011
  Q: We are a high school booster club 501 (c)(3) that is 100% funded by the booster donations and ...
  A: The Board of Directors of a 501(c)(3) organization may decide to fund differently the different ...
Volleyball league nonprofit??9/13/2011
  Q: we are starting up a volleyball league and are not sure if we could establish it as a nonprofit ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Nonprofit organization by non-resident of the US9/13/2011
  Q: Are there the same rules and procedures of starting up a non-profit organization by a non-resident ...
  A: Yes, non-residents pay the same fees to found a nonprofit organization (to incorporate an ...
Nonprofit organization by non-resident of the US9/13/2011
  Q: Are there the same rules and procedures of starting up a non-profit organization by a non-resident ...
  A: I have not seen any nationality requirement in any state law regarding the qualifications for being ...
renting an apartment for personnel9/13/2011
  Q: We are an immigrant religious group with a 501c(3) account. Our congregation want to rent an ...
  A: I don't know whether you are asking whether the church officer's would be doing the "credit ...
501(c)39/12/2011
  Q: Can the owners of a gym who are also coaches and have children on the team be a part of the 501(c)3 ...
  A: The owners who are also coaches and also have children on the team may be part of the 501(c)(3) ...
Volleyball league nonprofit??9/12/2011
  Q: we are starting up a volleyball league and are not sure if we could establish it as a nonprofit ...
  A: First I need to know whether the team is going to be composed of mostly youth under the age of 19 ...
501c3 participation9/10/2011
  Q: My child is a gymnast and the gym club has a 501c3 to help offset costs of the meet fees. Our gym ...
  A: No. That is not allowed. The gym club may not conspire with the 501(c)(3) organization to require ...
Connecticut Nonprofit Association lost its tax-exempt status9/10/2011
  Q: A Connecticut nonprofit association recently had its tax-exempt status revoked because it failed to ...
  A: See www.irs.gov/charities/article/0,,id=221600,00.html which is the IRS' "Automatic Revocation of ...
501(c)(3)9/9/2011
  Q: Mechanic. We are members of a non-profit parents association for my daughter's gymnastics club. ...
  A: My summary of IRS regulations relating to 501c3 booster organizations is at: http://goo.gl/9b573 and ...
T-shirt sales/Gymnastics team9/9/2011
  Q: We are a brand new gymnastics booster club and have tried to start off on a solid note, well within ...
  A: 1. The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses ...
real estate profits9/9/2011
  Q: How are proceeds of a real estate transaction by a non- profit treated. For example, if a non- ...
  A: Well, the IRS would look at a short-term sale probably as unrelated business, but a long term sale ...
real estate profits9/9/2011
  Q: How are proceeds of a real estate transaction by a non- profit treated. For example, if a non- ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
A non-profit acquiring a for-profit9/8/2011
  Q: Our condo BCW HOA, a Non-profit corp, is planning on acquiring a Non-profit BCW Management company ...
  A: Under state law generally it is not possible to actually convert a nonprofit into a for-profit, ...
Excess funds in 501(c)(3) youth sports team9/8/2011
  Q: My daughter played for a youth girls softball team which was independently run under a "parent" ...
  A: The Colorado Revised Nonprofit Act is available through http://tinyurl.com/5cwsx5 If you want to ...
Excess funds in 501(c)(3) youth sports team9/8/2011
  Q: My daughter played for a youth girls softball team which was independently run under a "parent" ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
bank accts/by-laws/ethics9/8/2011
  Q: I am a board member of a 501(3)c sports org. in Texas. We have an elected president, vp, treasurer, ...
  A: I am assuming that your organization is a Texas nonprofit corporation. If my assumption is not ...
Tuition Scholarships9/8/2011
  Q: are tax exempt non-profit athletic booster clubs affiliated with private for-profit training ...
  A: An extensive discussion by the IRS of the private benefit issue relating to 501(c)(3) organizations ...
donation of a car to a nonprofit9/8/2011
  Q: We are a small 501(c)3 nonprofit that operates locally to end domestic violence. We recently had a ...
  A: See page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf under the heading "Charitable Class --start of ...
Tuition Scholarships9/8/2011
  Q: are tax exempt non-profit athletic booster clubs affiliated with private for-profit training ...
  A: The IRS only refers to Scholarships in the context of educational purposes. You can see that in the ...
Employee or not9/8/2011
  Q: We are a small church with an IRS 501(c)3)acknowledgement letter. We have no paid minister, no paid ...
  A: There are many factors that the IRS uses to conclude whether someone is an employee or an ...
Gymnastic booster club9/8/2011
  Q: My daughter recently changed gyms and we were part of a booster club who had fundraisers to offset ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
sub-contractors for a non-profit9/7/2011
  Q: Would like to put a portable 'drink' (i.e. starbucks) station in our church facility. Are we ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
fund raising quota9/7/2011
  Q: Can a non profit sports club (in our case a swim team) require parents to participate in fundraising ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Merging an Educational LLC into a current Non Profit9/6/2011
  Q: We have recently formed an LLC for online education. We have been approached by someone who ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
rewarding fundraisers9/6/2011
  Q: We are a youth athletic organization, 501c3. We are organizing a raffle and the youth players will ...
  A: The IRS is not going to be concerned if there is a reward of such small value (as a T-shirt is). ...
Are passthough dues counted as revenue9/6/2011
  Q: I took over as manager of our local bowling association last August, and our fiscal year runs ...
  A: The whole $15 is considered revenue. The IRS defines the term "gross receipts" for exempt ...
Non Profit monies refunded or transferred9/6/2011
  Q: I have a question about monies raised and if the non profit orgnaization can deny movement of monies ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Booster member fees9/5/2011
  Q: Our band parent organization, with 501(c)(3) status, exists to support the band program at our ...
  A: The IRS has written on page 2 (first column under "Introduction") in their publication 526 ...
Church pass-through to non-profit9/5/2011
  Q: You were a tremendous help to me and our organization about a year ago. I'm very grateful to you ...
  A: I am glad that I could help you last year. The church may not conspire to evade federal income ...
Renting your own house through your own nonprofit9/4/2011
  Q: My question is Can I rent a home that I own to my 501 c (3)? Here is the scenario: I purchase a ...
  A: I don't know what you mean by "what I read". Don't you have a determination letter from the IRS ...
Renting your own house through your own nonprofit9/4/2011
  Q: My question is Can I rent a home that I own to my 501 c (3)? Here is the scenario: I purchase a ...
  A: I wrote you in my original reply "I would need to know if 501(c)(3) organization is a private ...
Club President ultimatum for me to resign as coah or be fired and kids kicked off team9/3/2011
  Q: I have been an assistant coach with a youth league football team for 3 years now. This year a ...
  A: It appears that you do not have any employment contract. Therefore, you would need to look to the ...
Setting up divisions or subsidiaries for a nonprofit9/3/2011
  Q: I would like to set up a non-profit org (Company A) whose primary purpose is to give to families in ...
  A: If there are simply divisions in one company then there are no parent-subsidiary relationships. ...
Renting your own house through your own nonprofit9/3/2011
  Q: My question is Can I rent a home that I own to my 501 c (3)? Here is the scenario: I purchase a ...
  A: I would need to know if 501(c)(3) organization is a private foundation. It appears so, as you used ...
Non-profit9/3/2011
  Q: We belong to a youth baseball club and we would like to do fund raising. Can we apply for non profit ...
  A: I don't know what you mean by "sponsored through". For profit businesses may sponsor 501(c)(3) ...
Non-profit Band Boosters question9/3/2011
  Q: We have a band parent who makes and sells jewelry for a living. She has joined the boosters and ...
  A: The IRS has published at www.irs.gov/irm/part7/irm_07-025-003-cont02.html#d0e4718 ---Start of ...
501c3 IRS policy on student fundraiser accounts9/2/2011
  Q: My son and daughter are members of a high school marching band which is a 501c3 organization. My son ...
  A: If the funds in the individual accounts are, at least in part obtained by the families sales, the ...
Fire department using in house contractor.9/2/2011
  Q: I'm member of a volunteer fire department in Virginia we have just remodeled an out door pavilion ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
spending9/1/2011
  Q: Does a non profit have to spend all it's income in the current year or can it "bank" some for future ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
In Kind Donations8/31/2011
  Q: I would like clarification on how in kind donations are credited for tax pourposes and what can be ...
  A: have in my profile that this free forum is only for general questions relating to IRS federal ...
As a member, am I able to request an accounting of income/expenses for an event?8/28/2011
  Q: I am a paid member of my son's football booster club (a 501c3 in the State of Georgia). I chaired ...
  A: I am assuming that the booster organization is incorporated in the state of Georgia. The Georgia ...
Not for Profit Completely Ignoring Bylaws & President firing outside of Bylaws8/28/2011
  Q: I serve as a Board Member, head coach and parent of a youth football/cheerleading club that is ...
  A: As a Board member you have recourse to the Board which, following state law and its Articles of ...
Competitive, non-profit non-tax-exempt youth softball team8/28/2011
  Q: I am starting and coaching a competitive youth softball team that will be participating in local ...
  A: If you want donors to be able to deduct donations and not to have your sales income, if any, taxed ...
Non-profit and Non-paying players....8/26/2011
  Q: Our organization has several players that have not paid to participate in our sports league. The ...
  A: It appears that you are not asking about a 501(c)(3) booster organization. A sports team, that is a ...
Membership Dues Refunds8/26/2011
  Q: I have a question on a youth sports league in WI (a non-profit 501(c) (3)) that has 12-15 clubs (all ...
  A: You are correct. Refunds of members dues are not prohibited for 501(c)(3) organizations. ...
Feasability8/26/2011
  Q: I've been running a beekeeping organization in Washington State for the last couple of months. I'm ...
  A: The IRS does allow nonprofits to pay officers, employees or directors. However, the IRS does not ...
Feasability8/25/2011
  Q: I've been running a beekeeping organization in Washington State for the last couple of months. I'm ...
  A: First, before we can discuss sales activities, we would first need to come to the conclusion as to ...
501(c)(3) board member liability8/25/2011
  Q: In the state of VA are board members that receive no compensation for thier work with the non-profit ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Nonprofit pilot under existing 501c38/25/2011
  Q: I'm working with a nonprofit start-up that's proving its feasibility under an existing 501c3, but ...
  A: If you are an entity separate from the existing 501(c)(3) organization, like a separate corporation, ...
board of directors8/25/2011
  Q: Can the bylaws for a non profit corporation state the board of directors members will serve ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non Profit Soccer association8/24/2011
  Q: I recently became aware of transactions on bank statements that show charges by board members to ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
Non- Profit Church Changing Year End8/24/2011
  Q: We are a non-profit 501(c)(3) church and would like to change our tax year end date from December 31 ...
  A: Starting on the right column of page 6 of the IRS instruction we see: ---Start of Excerpt-- Section ...
Members and Church financial Records8/24/2011
  Q: Do Church Members have the right to view church financial records and salary of paid staff?
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
scholarships8/24/2011
  Q: I'm currently the president of a school support organization(non-profit) and we would like to give a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
CHURCH TRUST (BYLAWS)8/24/2011
  Q: DOES A CHURCH TRUST HAVE TO BE FILED AT THE COURT HOUSE FOR PUBLIC VIEW
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
opt out8/24/2011
  Q: Our club is 501(c)(3). We have members that do not want to participate in fundraisers and do not ...
  A: Such an operation would be what the IRS calls a cooperative, at least to a substantial degree. A ...
donation8/23/2011
  Q: "So, how we can contact with IRS? how we let them now ? Is there a specific procedures for that? ...
  A: Send a letter to: Internal Revenue Service P.O. Box 2508 Cincinnati, OH 45301 Harvey Mechanic, ...
Donation8/23/2011
  Q: We have a non profit corporation which is organized exclusively for charitable,religious,educational ...
  A: Send a letter to: Internal Revenue Service P.O. Box 2508 Cincinnati, OH 45301 Harvey Mechanic, ...
Donation8/23/2011
  Q: We have a non profit corporation which is organized exclusively for charitable,religious,educational ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Donation8/23/2011
  Q: We have a non profit corporation which is organized exclusively for charitable,religious,educational ...
  A: 1. See "Fund Raising" at: www.irs.gov/pub/irs-tege/eotopicl82.pdf as to the type of "fundraising" ...
Collecting Donations for a sick relative abroad8/23/2011
  Q: Mechanic, Two days ago, I found out that my teenage nephew, who lives abroad in Bangladesh, is ...
  A: The IRS explains that, when applying for the Employer Identification Number, the club may check the ...
Individual fundraising8/23/2011
  Q: Our roller derby team has recently submitted our paperwork for 501(c)3 status with the IRS. My ...
  A: The team members may raise funds but all of the funds would go into the general fund and not benefit ...
Transferring EIN8/23/2011
  Q: Have an interesting one. My x wife established our travel baseball teams EIN#. She has now decided ...
  A: An organization can not change the name (or Social Security number) of the person who applied for an ...
Trust account for injured daughter8/23/2011
  Q: A friend's daughter was in an accident and is in a coma. We are looking to setup a bank account for ...
  A: You are going to be treated like an ordinary business. The IRS will treat it like sales. Harvey ...
Can a 501 C 3 buy property?8/22/2011
  Q: If a 501 C 3 buys a church, can the church pay rent to the 501 C 3? Would this be taxable income? ...
  A: A church may pay rent to another 501(c)(3) organization (churches are considered to be 501(c)(3) ...
Booster Club Rules8/22/2011
  Q: Can you post an updated link to the "Booster Club Rules"? It is apparently no longer available at ...
  A: My summary of IRS regulations relating to 501(c)(3) booster organizations is now at: ...
officer elections8/20/2011
  Q: Can a non-profit's officers require its nominations committee to propose a slate whereby only the ...
  A: Such precedent is not binding. You would need to look to the Articles of Incorporation and Bylaws. ...
Starting a Youth Field Hockey Progam8/20/2011
  Q: I am trying to start a small youth field hockey program/ club in my town. I have already researched ...
  A: You are part of the organization. A third party would be someone else who, for example, is an ...
Starting a Youth Field Hockey Progam8/19/2011
  Q: I am trying to start a small youth field hockey program/ club in my town. I have already researched ...
  A: Well, it appears that you don't want to set up a nonprofit corporation, but, if you decide to do so ...
Starting a Youth Field Hockey Progam8/19/2011
  Q: I am trying to start a small youth field hockey program/ club in my town. I have already researched ...
  A: One of the main reasons to obtain nonprofit corporate status is that then the volunteers are covered ...
non profit regulations8/19/2011
  Q: I am the treasurer of a non profit 501(3)c for a dance team. We charge an annual membership fee of ...
  A: You are not required to give the parents, absent some agreement or something in your Articles of ...
non profit regulations8/19/2011
  Q: I am the treasurer of a non profit 501(3)c for a dance team. We charge an annual membership fee of ...
  A: 1. If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with ...
Trust account for injured daughter8/19/2011
  Q: A friend's daughter was in an accident and is in a coma. We are looking to setup a bank account for ...
  A: As to charitable deductions, see IRS Publication 526 "Charitable Donations" which is available at: ...
Charity Fund raising by a 501(c)78/19/2011
  Q: This is really a two-part1) My motorcycle club in interested in incorporating as a Not-For-Profit & ...
  A: 1. See IRS Publication 557 "Tax Exempt Status for Your Organization" available at: ...
Nonprofit donations to other nonprofits8/18/2011
  Q: A forprofit company wants to host a fundraiser for its family of 501c3 organizations it established. ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
non profit board8/18/2011
  Q: The officers of our board never come up for general election. They say because they are "officers" ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
membership8/18/2011
  Q: Is it legal for a 501c3 to allow all parents in a school to be members of a parent group ...
  A: In the United States a person may not be considered to be a member of any organization as ...
Fire Deparement Donation Tax Deductibility8/18/2011
  Q: Can you help clarify the deductiblity status of a donation made to a fire department? Is the ...
  A: As you appear to be a professional fundraiser, I suggest that you retain me to write specific ...
Travel Expenses8/18/2011
  Q: We are a 501C3 youth baseball organization and my question is, can the organization pay for coaches ...
  A: If the coach is traveling primary to coach the team, then that is a valid team expense of the ...
booster club status8/17/2011
  Q: My question is since the UIL does not recognize cheerleading as a sport can an athletic booster club ...
  A: As long as the school is below college level, the IRS grants 501(c)(3) organization status to a ...
Right of members8/17/2011
  Q: Per bylawys of a CA non-profit corporation: members have one voting member. Board of Trustees (BOT) ...
  A: You wrote, "members have one voting member". Do you mean that the members may elect one member of ...
My non profit8/17/2011
  Q: I have an 501 ( c ) (3). We were founded in the state of Ca. Ca is where our headquarters is local. ...
  A: Each state requires registration for offices in their states and that is called, normally, ...
Can NON-Profit School 501-C donate to Church8/16/2011
  Q: We have a non-profit school 501-C Independent Corporation that rents and is housed in our church. ...
  A: Whenever an attorney (like the school's attorney) gives an opinion, and that opinion states that the ...
Reincorporation in a new state8/16/2011
  Q: I've read over many of these answers and none quite answer the question that I have. Our nonprofit ...
  A: The proper way is as you described, except that the transfer of the assets from the MA corporation ...
Noprofit Sports club8/16/2011
  Q: I am trying to establish a nonprofit sports club in my town. we would like to sell products and ...
  A: First I need to know whether the club is almost entirely composed of youth. If not, it appears that ...
non profit director salary8/16/2011
  Q: We are currently establishing a non profit and don't anticipate enough revenue generation in the ...
  A: You put that information in your Form 990 in the future. I don't know what is in your bylaws and, ...
non profit director salary8/16/2011
  Q: We are currently establishing a non profit and don't anticipate enough revenue generation in the ...
  A: You will need to submit to the IRS a proposed good faith budget for three years. It appears that ...
donating space to a Nonprofit8/15/2011
  Q: Can a landlord donate a space to our organization and receive a tax deduction for what that space ...
  A: See IRS Publication 526 "Charitable Donations" which is available at ...
Filing 990 EZ or 990-N8/15/2011
  Q: I hope this question falls under your parameters. I have filed Form 990-EZ for a 501(c)(8) ...
  A: The IRS has no asset test: --- Start of Excerpt --- An exempt organization (other than a private ...
Filing 990 EZ or 990-N8/15/2011
  Q: I hope this question falls under your parameters. I have filed Form 990-EZ for a 501(c)(8) ...
  A: 1. www.irs.gov/charities/article/0,,id=169250,00.html describes who may file Form 990-N. The key ...
1099 reporting for 501(c) (3)8/14/2011
  Q: Can you help me understand how the revised requirements for 1099 (W-9) for 2012 will effect ...
  A: Those "revised requirements for 1099s have been repealed recently. See the May 1, 2011 Article from ...
501(c)(3) vrs. 501(c)(4)8/14/2011
  Q: Could you explain the positives and negatives when choosing between a 501(c)(3) and a 501(c)(4) in ...
  A: You can read about 501(c)(4) organizations from the IRS at: ...
mileage8/14/2011
  Q: If an employee of a not-for profit organization is paid mileage fom this organization does the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Gymnastics Booster Club8/14/2011
  Q: Can a gymnastics booster club pay certain parents for their services? Specifically, if the daughter ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
non-profit v. for-profit8/13/2011
  Q: I am starting an educational organization to teach classes to home school students, for after school ...
  A: 501(c)(3) organizations are good if you expect to obtain donations, but there are restrictions as to ...
Holding money that cannot be disbursed8/13/2011
  Q: Last Oct our Michigan-based church conducted a funeral for a church attendee (non-member). Donations ...
  A: Courtesy, but generally not the law, would require that the church give the donations back to those ...
YMCA contracting For-Profit Business/Undercutting Local Businesses8/12/2011
  Q: A YMCA in New York has contracted and promoted a Martial Arts program who has consistently dropped ...
  A: First I would like to see the contract between the YMCA and the for-profit entity. It is not clear, ...
Baseball Tax id # for donations8/12/2011
  Q: I would like some information on how to get a tax id number. My son plays on a baseball team and ...
  A: You may apply for a federal EIN (Employer Identification Number, also known as the taxpayer ...
Name Change for a 501c3 Church8/11/2011
  Q: We want to change our name and we want a new tax ID number. What must we do?
  A: The IRS does not want existing organizations to change their EIN (Employer Identification Number, ...
Non-Profit Officers8/11/2011
  Q: Can the Officers of a Non-Profit Organization in Texas (has an executive staff of 12 and about 400 ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Donations to a non profit for tax purpose8/11/2011
  Q: We have started a non profit and are confused on how incoming donations (if we can call them that) ...
  A: Many 501(c)(3) organizations use the term "minimum donation" and use of the term is allowed. ...
Booster club requiring membership or a fee if you opt our of being a member8/11/2011
  Q: A dance team wants to require that all members of the team either join the parent booster club or ...
  A: That is not legal because it appears that the booster club does not give similar benefits to the ...
501-C food pantry and open records law8/11/2011
  Q: I am president (unpaid) of a 501-C charitable organization which includes our local food pantry. ...
  A: As for your state law on Open Records and Open Meetings See ...
Membership Refusal8/10/2011
  Q: We are a non-profit running club in California. Can we refuse membership into the club for any ...
  A: Unless the person already has a contract or agreement to be a member of the club, for example, for a ...
Potential Issues with Funding through AdSense8/10/2011
  Q: I founded and now work for a nonprofit that has at its core multiple forums where people congregate ...
  A: You are welcome. I am not going to give you my opinion as to the 5% number, but, as to the 60%, ...
501 (c) (3) non profit law and FOIA8/10/2011
  Q: We are a 501 (c) (3) organization who has received a written request (email) from someone asking for ...
  A: This is not a FOIA issue (FOIA deals with governmental agencies). It is an issue of IRS ...
Potential Issues with Funding through AdSense8/10/2011
  Q: I founded and now work for a nonprofit that has at its core multiple forums where people congregate ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
HS Band Booster Group Pays Director Fees8/10/2011
  Q: We are a California nonprofit public high school band booster group 501(c)(3). Our band director is ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
excess funds8/10/2011
  Q: I am currently the head coach of a select travel baseball team in Texas. We are recognized as a ...
  A: You are 100% correct. Parents may not receive distributions from the money that was raised from ...
Requirement to Spend Funds8/10/2011
  Q: We are a nonprofit that supports a local senior center. We have many fund raising efforts and have ...
  A: Endowments are not outside of the rulings that I cited to above. As I wrote, "If you do it for many ...
Requirement to Spend Funds8/9/2011
  Q: We are a nonprofit that supports a local senior center. We have many fund raising efforts and have ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Member Benefits8/9/2011
  Q: Are discounts for members (travel, auto rental, insurance, etc.) considered unrelated business ...
  A: You may need to report any contract if the commercial martketer or an insider of such a company is ...
Member Benefits8/9/2011
  Q: Are discounts for members (travel, auto rental, insurance, etc.) considered unrelated business ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
Member Benefits8/9/2011
  Q: Are discounts for members (travel, auto rental, insurance, etc.) considered unrelated business ...
  A: You have asked about income but you did not refer to any income. You only referred to benefits. If ...
Local 601c3 to run bar/restaurant8/8/2011
  Q: A local 501C3 in my community is proposing to operate a bar and restaurant as a way to make money ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
501 3c Tax Issues maybe...8/6/2011
  Q: I am an officer in a select fastpitch organization that has 11 teams in it. Last year we were ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501c38/6/2011
  Q: Our 501C3 club has said that it's purpose is to promote the sport but how they promote the sport is ...
  A: Yes. that appears to be a violation. The IRS warns about 501c3 organizations having individuals to ...
Fiscal Sponsorship8/6/2011
  Q: Myself and several others operate as BEEM which serves homeless/displaced individuals at Christmas. ...
  A: The IRS uses the phrase "fiscal sponsor" only a few times as we can see by a Google search: ...
fiscal sponsorship for an existing non-profit's project8/5/2011
  Q: I work for a non-profit located in the western United States. We are incorporated and registered in ...
  A: If you find a Louisiana organization to let you operate through their corporate structure, that is ...
Aid organization8/5/2011
  Q: My question is that how much percentage a public charity-aid/relief organization should disburse its ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Tax Consequences of Commercial Property transfer to Non-Profit8/4/2011
  Q: What are the tax consequences (both ways)if a US citizen transfers commercial buildings to a US ...
  A: I am assuming that the 501(c)(3) organization's board has agreed to accept the real property and has ...
Non profit competing as a business.8/4/2011
  Q: We have noticed and personally experienced a non profit operating as a business in our market and ...
  A: See Religious Publishing at www.irs.gov/irm/part7/irm_07-025-003-cont01.html#d0e1479 where the IRS ...
Weapons on Nonprofit Property8/4/2011
  Q: We are a non profit camp with the 501(c)(3) status. We currently do not allow any guns, slingshots, ...
  A: There are no IRS regulations regulating 501(c)(3) organizations having weapons. Therefore, you ...
503c3 grant rules8/3/2011
  Q: I belong to a 501c3 organization that supplies scholarship grants to members of the organization ...
  A: You need advance approval from the IRS for your method of giving scholarships if you want assurance ...
Tournament Fees8/3/2011
  Q: About 2 months ago, our travel baseball team registered to participate in a baseball tournament in ...
  A: You have a problem because you might need to sue that tournament in a court in New York (unless they ...
Tournament Fees8/3/2011
  Q: About 2 months ago, our travel baseball team registered to participate in a baseball tournament in ...
  A: It appears that your are located in a state other than New York and the tournament organization is ...
Transfer from one Booster Club to Another8/3/2011
  Q: Earlier this year (2011) you answered a question regarding the transfer of money from one 501(c)(3) ...
  A: If funds were paid by a parent as fees (which are not a deductible donation), then the 501(c)(3) ...
when a donor makes a donation do they have any legal control over the donation?8/3/2011
  Q: We had a donor make a donation for the purchase of $20k worth of field equipment to be used in our ...
  A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
Non-profit corp & new W-9 form8/3/2011
  Q: In January 2011 the IRS revised the W-9 form. The old form asked if you were a Sole Proprietor, ...
  A: It appears that you believe that your organization is a corporation. A 501(c)(3) booster ...
non profit car club question8/3/2011
  Q: We are setting up a nonprofit car club in Louisiana. It is basically a way for members to meet each ...
  A: No. You can use the procedure for a simple club. Any entity that acquires an EIN should consider ...
Starting a non-profit8/3/2011
  Q: We have started a non-profit, and we are trying to determine a fiscal year end. Everything that I ...
  A: A donor will not be able to take a deduction for a donation that was given before the "effective ...
non profit car club question8/2/2011
  Q: We are setting up a nonprofit car club in Louisiana. It is basically a way for members to meet each ...
  A: You are not required to obtain federal tax exemption if you are a simple club. The IRS explains ...
Caylee Marie Anthony Foundation8/2/2011
  Q: George and Cindy Anthony have created the Caylee Marie Anthony Foundation in Florida. They accept ...
  A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
Non profit youth sports codes of conduct8/2/2011
  Q: Can non profit youth sports associations just make up rules as they see right? Do they have some ...
  A: Rules outside of bylaws are what are generally known as resolutions and they generally must be ...
High School Reunion Bank Account8/2/2011
  Q: I recently received my TID from the IRS for a high school reunion. My next step is to open a bank ...
  A: The IRS will not consider your organization to be exempt from federal income taxes if you engage in ...
Disaster Relief Assistance8/1/2011
  Q: When providing disaster or hardship relief grants to an individual, does the IRS require that the ...
  A: 1. If a person's debt exceeds his/her income, that should not preclude an individual from receiving ...
Disaster Relief Assistance8/1/2011
  Q: When providing disaster or hardship relief grants to an individual, does the IRS require that the ...
  A: There is no particular debt-to-income ratio. In fact, an individual does not need to have any debt ...
scholarships7/30/2011
  Q: Can a booster club accept "scholarships" from a service club to help send athletes to camp. A few ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Separate Fundraiser7/30/2011
  Q: We are a gymnastic board which enjoys the 501 c3 status. We have a boy and girls teams from the ...
  A: I have not seen that the IRS objects if a team of some size more than a few members is allowed by ...
fundraising7/29/2011
  Q: OK.. I am so confused! I have been researching for days and still can't figure this out. I have ...
  A: Big clubs are violating IRS regulations and just recently the IRS issued a memorandum to its agents ...
US 501c3 Grants to a Foreign NGO7/29/2011
  Q: The foreign NGO that we make grants to is our sister organization, though a complete separate ...
  A: Reports are one thing. But, you are correct that, whether they have reports from you or not, you ...
Registering in another State7/29/2011
  Q: We are currently registered in Idaho and want to get registered in MT to do service there. The ...
  A: The registered agent simply accepts mail from the state or other government entity on behalf of the ...
US 501c3 Grants to a Foreign NGO7/29/2011
  Q: The foreign NGO that we make grants to is our sister organization, though a complete separate ...
  A: There is no U.S. tax regulation about what information a 501(c)(3) organization beyond what it is ...
Soccer team treasurer7/29/2011
  Q: I was asked to be the team treasuerer for a competitive soccer team. We need to open a checking ...
  A: The IRS explains that, when applying for the Employer Identification Number, the club may check the ...
non-profit homeless housing7/29/2011
  Q: Can a non-profit homeless organization charge their tenants rent?
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Sports non-profit no board, not following bylaws7/28/2011
  Q: I was a former member of a sports non-profit. During my time with that group, there was a board of ...
  A: You are welcome. There is only one organization and the organization is responsible for all of the ...
Nonprofit bylaws7/28/2011
  Q: Our California based small nonprofit organization is 13 years old. Two different sets of bylaws and ...
  A: The Board may meeting a adopt totally new bylaws. Note that you would need to review all of the ...
Sports non-profit no board, not following bylaws7/28/2011
  Q: I was a former member of a sports non-profit. During my time with that group, there was a board of ...
  A: You wrote, "There is nothing in the organizations bylaws about dissolution of the organization". ...
Sports non-profit no board, not following bylaws7/28/2011
  Q: I was a former member of a sports non-profit. During my time with that group, there was a board of ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Christian School Booster Club7/28/2011
  Q: I am a parent of children who are home schooled, yet they participate in school sports at a small ...
  A: It appears that the booster group is simply a committee of the school and does not have its own ...
Booster club membership7/28/2011
  Q: May we require our parents to pay a fee to join our booster club association? If they chose not to ...
  A: I just tried that link and had no problem and I have sent it to many questioners lately and no one ...
Booster club membership7/28/2011
  Q: May we require our parents to pay a fee to join our booster club association? If they chose not to ...
  A: Such an operation would be what the IRS calls a cooperative. A cooperative is not qualified as a ...
501(c)(3) vs 501(c)(4)7/27/2011
  Q: Between the two 501(c)(3) vs 501(c)(4) what are the major differences. The non profit organization ...
  A: A 501(c)(3) organization must be charitable, educational or religious. A 501(c)(4) organization may ...
Allocation of funds from 501c softball team7/27/2011
  Q: Ok.. I have a few questions all in one. Our 501c non-profit softball team is over for the season, ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
How to start my 501 (30 Process7/25/2011
  Q: I have a organization that does work in Mexico but I am a American citizens and want to register my ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Independent Contractor as Manager of non-profit7/25/2011
  Q: A certain church has a 501 (c) (3) classification. They desire to open a thrift store, but they do ...
  A: The IRS does not prohibit 501(c)(3) organizations from having outside management (which would ...
Purchasing equipment7/22/2011
  Q: Our booster club is a 501c3. We have received a $10000.00 donation. Owner is wanting club to split ...
  A: No. See www.irs.gov/pub/irs-tege/eotopica93.pdf starting on pages 11 "Private Facility Owners" which ...
501c37/22/2011
  Q: Our coach is holding a meet this coming season. Our booster club will receive all profits from ...
  A: If by "athlete" accounts you mean to accounts of individual athletes on the books of your 501(c)(3) ...
501 c 3 dissolution7/22/2011
  Q: If a Florida 501 (C) (3) dissolves does it have to give it's property to another 501 c 3?
  A: In order to have obtained IRS exemption determination, a 501(c)(3) organization would have had to ...
Owner benefit for non profit booster club7/22/2011
  Q: We have a not for profit 501c3 gymnastics team. Coach/ owner is wanting the boosters to purchase ...
  A: See www.irs.gov/pub/irs-tege/eotopica93.pdf starting on pages 11 "Private Facility Owners" which ...
501c3 bank account7/21/2011
  Q: May an affiliate of a 501C3 church, such as a Men's Club, maintain its own bank account?
  A: The church board may authorize many bank accounts but they all will have the same EIN (Employer ...
non profit but not exempt7/20/2011
  Q: we have a booster club that each member gets what they earn. we realize that goes against tax ...
  A: www.i55mall.com/FMF/index.html is the Colorado Revised Nonprofit Act as of 1998 A newer version ...
non profit but not exempt7/20/2011
  Q: we have a booster club that each member gets what they earn. we realize that goes against tax ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Starting a non-profit7/20/2011
  Q: We have started a non-profit, and we are trying to determine a fiscal year end. Everything that I ...
  A: Yes, a nonprofit may have a fiscal year ending any month. See Instructions for Form SS-4, ...
Land Donation a "Gross Receipt"7/20/2011
  Q: WE are a small nature conservancy with less than $25K a year in general monetary donations, dues, ...
  A: The IRS defines the term "gross receipts" for exempt organizations at: ...
youth sports fundraising for 501c37/19/2011
  Q: We are part of a 501c3 organization - our teams set up fundraisers in order to defray their costs of ...
  A: A 501(c)(3) organization is not allowed to require work for benefits. Therefore, if 5 members ...
misrepresenting 501c37/19/2011
  Q: i am on the board of a youth sports organization. the organization has knowingly operated for the ...
  A: See IRS Publication 557 "Tax Exempt Status for Your Organization" www.irs.gov/pub/irs-pdf/p557.pdf ...
non-profit donation7/19/2011
  Q: Harvey, I hope that you are well. Fifteen years ago I incorporated a small accredited, non-profit ...
  A: Generally the Board of Directors controls the assets of a nonprofit corporation unless there is ...
Non-profit/For-Profit7/19/2011
  Q: I would like to know if a non-profit can set-up a contract with a for-profit in which the for-profit ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
designated giving to individuals7/18/2011
  Q: A family in our church has hit on very hard times. Another family in our church would like to help ...
  A: No. See www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is pdf page 7 of that pdf file) ...
Car Club Event7/18/2011
  Q: I'm the president of a small car club. We currently have 14 members and charge $10 a month in dues. ...
  A: Ok, I see that part now, but I would need to analyze whether the nonmember income results in no ...
Car Club Event7/18/2011
  Q: I'm the president of a small car club. We currently have 14 members and charge $10 a month in dues. ...
  A: I don't understand why you are concerned with "profit". The IRS only discusses gross income (before ...
Nonprofit Name7/18/2011
  Q: Can a 501 c 3 nonprofit who's legal entity exists as the "Crested Butte Ski Club" per their founding ...
  A: I don't know what you mean by "PR/Marketing and postioning effort", but the IRS does not mind a dba ...
Car Club Event7/18/2011
  Q: I'm the president of a small car club. We currently have 14 members and charge $10 a month in dues. ...
  A: IRS writes generally about such organizations at www.irs.gov/irm/part7/irm_07-025-007.html Please ...
designated giving to individuals7/18/2011
  Q: A family in our church has hit on very hard times. Another family in our church would like to help ...
  A: No. As to charitable deductions, see IRS Publication 526 "Charitable Donations" which is available ...
Bylaws amendment7/18/2011
  Q: I am the secretary of a new 501(c)(3) foundation in the State of California, serving in this ...
  A: You simply attach the amendment to the original bylaws. Some organizations have a totally new draft ...
Bylaws amendment7/18/2011
  Q: I am the secretary of a new 501(c)(3) foundation in the State of California, serving in this ...
  A: After the amendment is passed it is entered into the corporate records that are kept by the ...
excise tax exemption7/18/2011
  Q: does a recognized church with 501(c)(3) status, have to pay excise tax on a car it purchased and ...
  A: It appears that you are referring to 26 U.S.C. §4064 which is available at: ...
Who is the Donor?7/17/2011
  Q: First, Mr. Mechanic, THANK YOU for volunteering your time and expertise on this site! I am the ...
  A: The U.S. Supreme Court has stated: ---Start of Excerpt-- The plain language of 1.170A-1(g) indicates ...
Transition from a 501(c)(19) to a 501(c)(3)7/17/2011
  Q: I am on the Board of a 501(c)(19) tax exempt WW II Bomb Group Memorial Association. We are rapidly ...
  A: Yes. See The IRS publication at www.irs.gov/pub/irs-wd/0504031.pdf for details about international ...
Transition from a 501(c)(19) to a 501(c)(3)7/17/2011
  Q: I am on the Board of a 501(c)(19) tax exempt WW II Bomb Group Memorial Association. We are rapidly ...
  A: Memorials and museums open to the public and primarily for the public indicates educational ...
Non profit rents space to a political campaign7/16/2011
  Q: Our non profit owns a large beautiful building free and clear. Up keep Is enormous and we have a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
5031c status7/15/2011
  Q: Am I able to claim 5031c Non Profit status if I am developing my non profit corporation to be self ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
501c77/15/2011
  Q: My father has a social club and his business is registered as a 501c7. I am having a Chairty ...
  A: That is up to the venue whether they accept it. You would have to inquire to that venue. Harvey ...
Initial Agent For Service of Process7/14/2011
  Q: Good afternoon! I just had a quick question regarding the Articles of Incorporation, specifically ...
  A: I suggest that you simply write the new address on the SI-100 "Statement of Information" which you ...
NPOs and Tax Write-Offs7/14/2011
  Q: Do NPOs and related organizations benefit from providing tax write off receipts besides the ...
  A: The organization gains from the value of the receipted items. Harvey Mechanic, Attorney at Law - ...
Options to transfer property to nonprofit7/13/2011
  Q: my organization has recently been receiving requests to accept transfers of ownership in some real ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
non profit deductible7/13/2011
  Q: can a board member of a non profit, who has put property land in a business trust claim a deductible ...
  A: In the last sentence of the article from West's Encyclopedia of American Law, edition 2 has that a ...
Non-profit/royalty blend7/12/2011
  Q: Is it legal/possible to set up a non-profit that pays royalties to providers of specific goods being ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Booster Club to support College club Team7/12/2011
  Q: Some alumni of a college are wanting to form a Booster Club to support a Club Sports team from our ...
  A: As a preliminary matter we would need to discuss whether the IRS would grant 501(c)(3) organization ...
Generating Checks7/12/2011
  Q: Can the Executive Director generate his own paychecks?
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Land owned by board member, leased to non-profit7/12/2011
  Q: I am one of the board members of a new non-profit foundation that will run a camp for kids with ...
  A: A 501c3 organization may not give insiders any private inurement and improvements to real property ...
Advisory Boards7/11/2011
  Q: a 501 (c) 3 organization that was set up by a family is now shifting all board positions to ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
selling property belonging to non-profit org7/11/2011
  Q: this property is in Ohio and is currently in forclosure for property taxes I'm interested in buying ...
  A: You can see the Ohio Nonprofit Corporation law ...
collecting of booster fees to ensure budget goals7/11/2011
  Q: Our booster club is asking that all members pay a $240 booster fee to ensure that we collect enough ...
  A: There is no IRS regulation that prohibits a 501(c)(3) booster organization from refunding dues or ...
donation from a US 501C3 to an international non-profit7/10/2011
  Q: Is there a limitation on the amount of money a 501c in the US can contribute to a nonprofit corp in ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
selling property belonging to non-profit org7/10/2011
  Q: this property is in Ohio and is currently in forclosure for property taxes I'm interested in buying ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501(c)(3) Treasures report7/10/2011
  Q: I am a board member of a 501(c)(3) organization. We do not receive a treasurers report at meetings ...
  A: The Missouri Nonprofit Corporation Law (2009 revision) is available at ...
donations to non profit organizations7/10/2011
  Q: If a non profit organization has several aspects of its services and I donate my money to aspect C, ...
  A: California has a specific code section, but that Code Section only applies to corporations. The ...
501(c)(3) Treasures report7/9/2011
  Q: I am a board member of a 501(c)(3) organization. We do not receive a treasurers report at meetings ...
  A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
Donation TO a municipality7/8/2011
  Q: Can a fundraising arm (a 501(c)(3)) of a local government donate the funds it has raised to the ...
  A: I don't know what you mean by "fundraising arm", but a 501(c)(3) organization may donate funds as ...
non profit making a loan to a private individual7/8/2011
  Q: Can a 501c3 private family foundation with over $10MM in assets make a private $125M loan to an ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
non profit making a loan to a private individual7/8/2011
  Q: Can a 501c3 private family foundation with over $10MM in assets make a private $125M loan to an ...
  A: You had "now" but it appears that you made a typo and you wanted "not". Anyway, the answer depends ...
501(c)3 Friends Of for a 501(c)107/8/2011
  Q: We would like to raise funds from foundations to support the work of our 501(c)10, a fraternal ...
  A: See IRS Publication 557 "Tax Exempt Status for Your Organization" available at: ...
Treasurer financial responsibility7/8/2011
  Q: I'm on the board of a 501c3, serving as Treasurer. I'm not allowed to write any checks or balance ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
donations to non profit organizations7/7/2011
  Q: If a non profit organization has several aspects of its services and I donate my money to aspect C, ...
  A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
What are the rules regarding loans to Non-Profits7/6/2011
  Q: What are the rules with regards to providing or obtaining loans for Non-Profit organizations. Are ...
  A: Most lending institutions would require small nonprofits to have individual co-signers, but each ...
Register with Secretary of State7/6/2011
  Q: when the 'register' with secretary of state is done/filed and it has been decided to not continue ...
  A: Yes, the proper procedure is to follow the state's procedure for dissolution. Harvey Mechanic, ...
Board of Nonprofit7/6/2011
  Q: Under IRS rules, may a 501(c)(3) "friends of" organization (e.g. friends of a municipally-run animal ...
  A: The IRS does not have any regulations prohibiting 501(c)(3) organizations that are "friends of" ...
pass through7/5/2011
  Q: Our organizations founder is a local politician who raises funds in our name. These funds are placed ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Church pass thru to another 501 c 3 non-profit7/5/2011
  Q: The community church offered to set up a memorial fund for a family whose son was killed in Iraq. ...
  A: First I should inform you that the church memorial fund would cause a violation of the IRS rules if ...
Fiesty Fundraisers7/3/2011
  Q: Our 501c3 sponsored another group, not a non profit, with use of our trademarked logo on one ...
  A: You are not liable to account for funds if you did not authorize them to collect the funds using ...
Shaker 45 year reunion7/3/2011
  Q: Just wondering if you and Howard were coming back for the reunion? I have toyed with the idea but ...
  A: I am glad that you contacted me, Susan, but I do not want to answer personal emails on this ...
Fundraising for a 501(c)(3)7/3/2011
  Q: We are part of a ball team that has a 501(c)(3) under our governing organization/league. We have ...
  A: Money should only be reimbursed or advanced to players for them to account for such expenses. Those ...
non profit donations7/1/2011
  Q: can a non profit donate to a unicorporated business trust
  A: A 501(c)(3) organization is not allowed to donate to an unincorporated business trust unless, by ...
unicorporated trust/non profit7/1/2011
  Q: can aunincorporated business trust donate funds to a non profit
  A: Any entity may donate funds to a 501(c)(3) organization. Harvey Mechanic, Attorney at Law - ...
501 c 3 board of directors6/30/2011
  Q: I am a member of a 501c6 corporation that is funding the formation of a 501c3. The Board of the ...
  A: Yes. See IRS Publication 557 "Tax Exempt Status for Your Organization" available at: ...
Unicorporated Association6/29/2011
  Q: I am the secretary of a Road Association. Though active for over 20 years we just got official and ...
  A: You don't need to incorporate. But, if you want donors to be able to deduct donations and not to ...
Soccer Team Fundraising vs Club6/29/2011
  Q: Our soccer club is a 501c3 organization. There are approximatley 20 traveling teams. There is only ...
  A: The transfer that you write about is 1/13th of the team funds not the amount that was fundraised by ...
Soccer Team Fundraising vs Club6/29/2011
  Q: Our soccer club is a 501c3 organization. There are approximatley 20 traveling teams. There is only ...
  A: As the number of members of the soccer team is not very small I do not see that the IRS would object ...
refund of individual donations to a church building program6/28/2011
  Q: Can a church refund donations to a building fund if the project does not go forward? Must funds be ...
  A: 1. There is no federal law prohibiting such a refund, even for donations in previous years. Such a ...
revenue or surplus profits at the end of the year6/28/2011
  Q: Does surplus revenue at the end of the year have to go to projects in other words, does it HAVE to ...
  A: Not for public charities. I am assuming from what you wrote to me that the organization is not a ...
Flow of Fundraising Monies...6/28/2011
  Q: I am involved with a sports club that is a non-profit with an EIN. Under the club are a number of ...
  A: Yes, the 501(c)(3) organization needs to be responsible to account for all of the funds given to the ...
Student Grant / Stipend Question6/28/2011
  Q: My question relates to an organization (501(c)(3) public charity) with which I work. We make small ...
  A: The issue of "earmarks", as to 501(c)(3) organizations refers to funding that is not coming from ...
Existing "Family Accounts"6/28/2011
  Q: I am part of a booster organization that just realized, thanks in part to your answers, that our ...
  A: 1. Your 501(c)(3) booster organization may have entered into a contract with the family and if you ...
Student Grant / Stipend Question6/28/2011
  Q: My question relates to an organization (501(c)(3) public charity) with which I work. We make small ...
  A: It appears that that organization that has approached you is a 501(c)(3) organization that is a ...
for profit or non-profit6/28/2011
  Q: I have recently taken the office of President for a school band booster club. We have a number of ...
  A: As you have new leadership it may be better for you to start with a new nonprofit corporation and ...
for profit or non-profit6/27/2011
  Q: I have recently taken the office of President for a school band booster club. We have a number of ...
  A: 1. Yes. It appears those persons are not employees (who would receive W-2s from your organization). ...
continued payment for a Lead Trust6/27/2011
  Q: Can a 501c3 corporation pay a long term employee ( a major gift officer of 14 years) near retirement ...
  A: It is not clear to me whether the compensation package was arranged ahead of time (before the lead ...
Abuse of not-for-profit status?6/26/2011
  Q: If a dance studio has a not-for-profit dance company and a for-profit dance studio, is it legal to ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Discrimination policy6/25/2011
  Q: Can 501c3 organizations discriminate based on race or age? I know the Boy Scout, Girl Scouts only ...
  A: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have ...
Overage for Fundraising for 501(C) 3 youth sports team6/24/2011
  Q: my question I hope doesn't seem to confusing. I will try to give as much detail as possible. My ...
  A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to engage in sales ...
Personal Gain From Nonprofit assets6/24/2011
  Q: A 501(c)(3) organization has allowed members to construct horse boarding facilities on club ...
  A: It appears that the 501(c)(3) organization is allowing the members too much of what the IRS calls ...
Gifts for volunteers6/24/2011
  Q: I would like to give small gifts of appreciation to our volunteers after specific intervals (after 6 ...
  A: I can not authorize it and I don't think that the IRS is going to authorize it, but a t-shirt is ...
Gifts for volunteers6/24/2011
  Q: I would like to give small gifts of appreciation to our volunteers after specific intervals (after 6 ...
  A: See http://viewer.zoho.com/docs/lcYOt which is a newspaper story describing a situation when the ...
Christian School Booster Club6/24/2011
  Q: I am a parent of children who are home schooled, yet they participate in school sports at a small ...
  A: Is the booster club incorporated separately from the school? After you give me that information I ...
new 501c3 using dbas?6/24/2011
  Q: My organization is designed to act as an umbrella with numerous programs underneath it. We'd like ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Public School District Applying For Federal Grant6/23/2011
  Q: The Federal Grant being applied for by this school district requires documentation that the public ...
  A: It appears that the Federal Grant request was not specific enough in its instructions. It should ...
Church Daycare6/23/2011
  Q: We are a church (501c)located in PR. We are looking to start a Christian daycare/preschool in our ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
soccer club bank account requirements6/23/2011
  Q: I have been asked to be the manager/treasurer for a soccer team. The soccer club will not provide an ...
  A: It does not take a gut feeling to know that it is illegal to pay a coach $12,000 annually and not ...
5013c status revoked6/22/2011
  Q: I'm a board member with a youth football league...the board changes hands frequently...all ...
  A: www.irs.gov/newsroom/article/0,,id=240239,00.html has the listed of the organizations that had their ...
Use of non-profit building6/22/2011
  Q: I'm on the board of a 501c3. Is it legal for a private garage sale (by a member and the ED of the ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
Non-profits conducting activities abroad6/22/2011
  Q: Can you point me to the relevant IRC sections and regulations governing US non-profit organizations ...
  A: See The IRS publication at www.irs.gov/pub/irs-wd/0504031.pdf for details about international ...
Gifts by Church to Individual6/22/2011
  Q: A missionary came and spoke at our church. The mission board recommended giving a large sum to him ...
  A: It appears that you are writing that the large amount that the church was giving was a gift and not ...
501c3 donation to 501c76/22/2011
  Q: I am on the Board of a summer swim team that was granted 501c3 status 2 years ago. Before that we ...
  A: A 501(c)(3) organization could pay for its use of the pool and give the owner a reasonable amount, ...
Nonprofits accepting/giving loans6/21/2011
  Q: We have a 501c3 film org. We've been approached by a filmmaker who wants Foundation X to give a ...
  A: The IRS uses a "Substance over Form" doctrine often. See ...
Gymnastics booster club6/21/2011
  Q: We are getting ready to start up a booster club at my daughter's gymnastics gym. I want to make ...
  A: The Board of Directors of a 501(c)(3) organization may grant funds unequally to different skill ...
Seeking assistance from the IRS6/21/2011
  Q: I worked for a small 501(c)3 non-profit charity for 18 months and spent extensive time assisting ...
  A: Complaints to the IRS regarding Exempt Organizations are discussed at ...
HS Band Booster Club Internal Accounts6/20/2011
  Q: we are a 501(c)(3)high school band booster, and I have read several of your responses regarding ...
  A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to engage in sales ...
tax id #'s6/20/2011
  Q: I work for a non-profit that has fund raisers.Is it necessary to put the Fein# on tickets for fund ...
  A: See the IRS Publication "Charitable Donations --- Substantiation and Disclosure Requirements" ...
Non profit laws6/19/2011
  Q: I am a parent of a child on a non profit swim team in tx. I am wondering what are the bylaws for the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Case Law to Support 501c application6/19/2011
  Q: I am the director of SEER-PD, a not for profit with a mission to teach environmentally responsible ...
  A: If the IRS considers that the presentation is borderline or worse then you would be given an ...
501(c) for foriegn charity6/19/2011
  Q: I am working for a NGO that is certified as a public charitable trust in India. When I return to ...
  A: Yes, you would need to create a new trust/organization within the US to begin the process. See ...
Officer as Employee?6/19/2011
  Q: We are putting together options for a non-profit organization and are unsure about some things. Can ...
  A: Generally, an officer or member of the Board may be an employee of a 501(c)(3) organization without ...
Fund raising6/18/2011
  Q: May a NOP purchase a product from a company and then turn around and sell that product for a small ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
mileage reimbursement rate6/18/2011
  Q: What is the mileage reimbursement rate for non-profits to pay their volunteers?
  A: The charitable rate of 14 cents only refers to unreimbursed expenses. Many people are confused ...
State registration6/18/2011
  Q: I am involved with a small non-profit animal welfare group. Can we solicit donations from people in ...
  A: There is a minimum in many states. The main state that you would definately need to consider is ...
Deductibility of Medical Costs Contributions6/17/2011
  Q: I wish to establish a fund dedicated to the provision of financial assistance (i.e. the payment of ...
  A: See page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf starting on the middle of pdf under the heading ...
Annual Scholarship vs Scholarship Fund6/17/2011
  Q: We are a 501(c)(3) looking to start granting scholarships. What are the differences/advantages of ...
  A: You need advance approval from the IRS for your method of giving scholarships if you want assurance ...
Dissolution of Non-profit/returning donations6/17/2011
  Q: My organization was formed less than 6 months ago and has received 3 donations. 2 donations in the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Free rent for non-profit organization?6/17/2011
  Q: I was reading one of your other answers about "bargain-rent" and I have a similar question. I just ...
  A: See IRS Publication 526 "Charitable Donations" which is available at ...
Church Selling Property6/17/2011
  Q: Our church, a 501(c)3 and located in Alaska, has property that it would like to sell that was ...
  A: As long as your church is maintaining its substantial worship activities for the public it may sell ...
State registration6/16/2011
  Q: I am involved with a small non-profit animal welfare group. Can we solicit donations from people in ...
  A: You would also need to consider your state's charitable solicitation regulations. ...
Band Booster and student accounts6/16/2011
  Q: Our local high school band booster organization has a question. We are a 501(c)(3). In our ...
  A: My summary of IRS regulations relating to 501(c)(3) booster organizations is at: http://goo.gl/9b573 ...
Capital Fundraising Construction6/16/2011
  Q: We had a 3 year pledge fund drive to begin construction of a new facility. We finished in 2 and ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
raffle tickets6/16/2011
  Q: If our non-profit is holding a 50-50 raffle how old does the person need to be to sell the tickets?
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non-Profit Sponsors6/16/2011
  Q: Our company, as well as 4-5 others, sent money to a non-profit organization (501c3) within the same ...
  A: See the 1994 IRS publication "Corporate Sponsorship Income" www.irs.gov/pub/irs-tege/eotopico94.pdf ...
Perceived Impropriety/Conflict of Interest6/15/2011
  Q: Our nonprofit received money from a donor that we are considering doing business with or enter into ...
  A: First, you should point out that the donor may not receive a deduction for such a donation as he is ...
Parent Booster Club6/15/2011
  Q: Our High School cheer team has decided to create a Parent Booster Club. We want to put all ...
  A: If the public high school lets your new organization be a committee of the school or school board ...
Scholarship funds6/15/2011
  Q: After setting up a tax free scholarship fund what information am I required to give when someone ...
  A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
Pass-through grant funding accounting6/14/2011
  Q: I am with a 501(c)3 and we are considering applying to be an administrator for a funding program. ...
  A: Then you would need to ensure that you are not conspiring with the granting organization to evade ...
Pass-through grant funding accounting6/14/2011
  Q: I am with a 501(c)3 and we are considering applying to be an administrator for a funding program. ...
  A: As to pass-through funds, see the Google Book Version of "Not-For- Profit Accounting Made Easy" By ...
Personal Inurement to Noninsider6/13/2011
  Q: My question is can personal inurement occur with non-insiders in a 501(c)(7) organization? For ...
  A: You are referring to a 501(c)(7) recreational or social organization about which the IRS writes at ...
Disbursement of fund from 501c3 booster club account6/13/2011
  Q: I am a treasurer of a 501c3 gymnastics booster club and have a question about disbursements of ...
  A: The operation of the work for offset of a family's expenses is a problem. The IRS may have a ...
Questions Regarding Youth Sport League Structure6/12/2011
  Q: I'm hoping you can answer my questions. Are youth sports leagues under any requirement to structure ...
  A: A youth sports league would need to be organized (structured) and operating as a 501(c)(3) nonprofit ...
tax return due date6/11/2011
  Q: I am a new board member in a 501c3 organization . Our fiscal year runs from April 1, 2010 thru March ...
  A: Instructions for Form 990 are at: www.irs.gov/pub/irs-pdf/i990.pdf and on page 8 of the instructions ...
Sale for services in kind6/11/2011
  Q: We are a 501c3 organization that rehabilitates and retrains rescued horses, than we find them new ...
  A: Barter is allowed in the United States and is treated as cash transactions as to value. ...
501(c)3 Arizona regulations6/11/2011
  Q: Does a 501(c)3 in Arizona that is designated to accept contributions that provide assistance to the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
state to state 501c36/11/2011
  Q: I am a Pastor in Phoenix Arizona ordained under a Bishop from California my question is can i ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501(c)(3)Music group and Inurement6/10/2011
  Q: I am Secretary of the Board for a very small 501(c)(3) nonprofit music organization approved by IRS ...
  A: The Artistic Director is not the issue here. The issue are the students and I am assuming that the ...
501(c)(3)Music group and Inurement6/10/2011
  Q: I am Secretary of the Board for a very small 501(c)(3) nonprofit music organization approved by IRS ...
  A: The Board of Directors of a 501(c)(3) organization may decide to give preferential treatment to ...
Open Record Request for Minutes of Board Mtg.6/10/2011
  Q: I am vice president of a non-profit 501 c3 organization in Mississippi. Are the minutes of our ...
  A: As for your state law on Open Records see www.rcfp.org/ogg/index.php?op=browse&state=ms (which is ...
Personal Gain for 501(C) 36/9/2011
  Q: Howdy you asked if we were 501 (C) ? we are 501(C) 3 my questions is below thank you! Howdy, ...
  A: The Board of Directors of a 501(c)(3) organization may not allow another Board member or an officer ...
Temporarily Dissolved Non-Profit6/9/2011
  Q: If a non-profit organization is temporarily dissolved at the state level for failing to file an ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non profit Personal Gain question6/9/2011
  Q: Howdy, My question is: Can a member of our non profit Board of Directors, send an email(s) to our ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
transfer between 501(c)(3) corps?6/8/2011
  Q: I'm on the board of a 501(c)(3) corp (A). We currently have six directors, but three directors are ...
  A: If corp (B) is a public charities (in other words, not a private foundation), there is no problem ...
Corporate non-profit entity6/8/2011
  Q: I work at a small company. We'd like to establish a non-profit entity which would initially be ...
  A: ---Start of Excerpt-- A charitable organization must be set up for the benefit of an indefinite ...
501c3 Holding Funds in Trust for 501c76/8/2011
  Q: Is it permissible for a 501c3 to hold 501c7 funds in trust? What I mean by "in trust" is that the ...
  A: Yes. A 501(c)(3) organization may accept a loan from any U.S. entity and may invest the loan ...
By-Laws Amendment / Revamping6/8/2011
  Q: I'm the Vice Chair of the Organization and Chairman of the By-Law Committee of a 501-C3 (Lions Eye ...
  A: You are welcome, John. John, the phrase in the Charities Bureu publication that I cited to above ...
501c3 Holding Funds in Trust for 501c76/8/2011
  Q: Is it permissible for a 501c3 to hold 501c7 funds in trust? What I mean by "in trust" is that the ...
  A: A 501(c)(7) organization may certainly give funds to a 501(c)(3) organization without restrictions ...
By-Laws Amendment / Revamping6/8/2011
  Q: I'm the Vice Chair of the Organization and Chairman of the By-Law Committee of a 501-C3 (Lions Eye ...
  A: John, The by-laws were "passed" not "past" :-) Anyway I am assuming that your organization has ...
Charity sponsored project6/7/2011
  Q: I am on the board of a Christian charity. We have a gentlemen from a local church that wants to ...
  A: Revenue Ruling 56-304 has --- Start of Excerpt --- Organizations privately established and funded ...
Charity sponsored project6/7/2011
  Q: I am on the board of a Christian charity. We have a gentlemen from a local church that wants to ...
  A: I don't understand in the second sentence what you meant to write. You did have "wants to help our ...
return of a donation6/7/2011
  Q: Mr. Harvey: Our organization went through a split. Right after the split a $4,000 donation came in ...
  A: The attorney may know that the donor wanted the donation to go to the other organization not yours, ...
Director's spouse on tour6/6/2011
  Q: If our booster organization pays for the director's wife to travel on tour with him, does his family ...
  A: The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses ...
509 (a) 1 or 509 (a) 36/6/2011
  Q: We have an educational foundation that exists to provide scholarships to students, additional ...
  A: The IRS writes about Section 509(a)(3) Supporting Organizations at ...
Non profit rent free lease.6/6/2011
  Q: We just established a non profit organization and want to share some of the office with another non ...
  A: The term "private organzation" is not useful in this discussion. The issue with the IRS is whether ...
509 (a) 1 or 509 (a) 36/6/2011
  Q: We have an educational foundation that exists to provide scholarships to students, additional ...
  A: 26 U.S.C. § 509 is available at http://codes.lp.findlaw.com/uscode/26/A/1/F/II/509 and (a)(3) refers ...
Non profit rent free lease.6/6/2011
  Q: We just established a non profit organization and want to share some of the office with another non ...
  A: I am assuming that your organization would be applying soon for 501(c)(3) organization status with ...
Non profit rent free lease.6/6/2011
  Q: We just established a non profit organization and want to share some of the office with another non ...
  A: You are welcome. For each nonprofit I would need to know the subsection of IRC 501(c) under which ...
insubstantial fundraising?6/4/2011
  Q: Quick question for you......If ALMOST ALL of your fundrasing money (5 fundraisers a year) is going ...
  A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to engage in sales ...
non profit scholarships6/4/2011
  Q: we are a non profit organization that supports our dance studio. People can join as members to ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Booster personal accounts6/3/2011
  Q: Our high school band booster association keeps individual personal accounts for each student in ...
  A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to engage in sales ...
Registering for new church6/3/2011
  Q: I am currently planning on planting a church in Illinois. Can you advice as to how to register the ...
  A: You would need to establish a charitable trust, incorporate under a state's nonprofit corporation ...
NPO6/3/2011
  Q: Is it legal for the director of a non-profit to only give repair jobs to thier spouse at a much ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Nonprofit DBA6/2/2011
  Q: If a 501c3 nonprofit corporation has a DBA and excepts contributions made out to the DBA, are the ...
  A: Yes. Any funds that go into a bank account with the same EIN (Employer Identification Number, also ...
establishing US non-profit in Mexico6/2/2011
  Q: We are US citizens who currently live in Baja California, Mexico. We have been operating a ...
  A: You would need to have a U.S. based organization. You could use your California address. If you ...
starting new non-profit. Where to begin?6/2/2011
  Q: We are a group of people looking into starting an organization with primary focus of providing ...
  A: Some organizations would qualify for 501(c)(3) organization status whereas others would not, but ...
Non-profit mandatory participation/fundraiser fees6/1/2011
  Q: On 11/13/07 you said restricting participation based on non-payment of dues is illegal. But, on ...
  A: As I had at http://en.allexperts.com/q/Nonprofit-Law-2266/2010/8/Non-profit-Enforced-Mandatory.htm ...
Non-profit mandatory participation/fundraiser fees5/31/2011
  Q: On 11/13/07 you said restricting participation based on non-payment of dues is illegal. But, on ...
  A: If you send me the URL of those two previous answers I will check on what I wrote, but, in any case, ...
expelled members5/31/2011
  Q: My dog training club is 501 c4. We offer classes to the public and that is how we raise money to ...
  A: You are referring to a 501(c)(4) organization about which the IRS writes at: ...
"Love Offerings"5/30/2011
  Q: It is my understanding that churches can not give "love offerings" or "bless" some one without it ...
  A: No that is not correct. Churches may grant funds to someone who is in need. Revenue Ruling 56-304 ...
non-beneficial ownership of real estate5/29/2011
  Q: Our church was unable to get a mortgage to buy a property in the church name. Two of the members ...
  A: There is no form. There should be drafting a contract. I would be willing to work on your matter, ...
reply to you5/29/2011
  Q: Just saw another one of your answers. It stated that "all money given to the booster club by ...
  A: The URL would have been the address in your browser when you were looking at that answer from ...
International donations5/28/2011
  Q: Is it legal to donate money to a legitimate church in the US with the understanding the all of the ...
  A: No. That is called by the IRS as a "conduit" donation. The IRS treats those as if the funds were ...
501c35/28/2011
  Q: We just formed an athletic booster club for our school and I am the president of such. We have ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
where to place individual pass through funding payments5/27/2011
  Q: Just saw another one of your answers. It stated that "all money given to the booster club by ...
  A: Please give me the url for that earlier answer that I gave so that I can correct it, if necessary. ...
Taking over a dormant NPO5/26/2011
  Q: I have recently started a organization to help provide relief services and funds for those displaced ...
  A: Yes, your new board of directors, with you as one of the new board members, presumably, would be ...
umbrella non-profit organization5/26/2011
  Q: I'm a parent with an autism young person; and we spend a lot of time creating programs, guiding ...
  A: There are two options. One is that you form your own organziation and then have the established ...
sale of a school building.5/26/2011
  Q: We are a 501 (c) (3) public charity.We own a school building currently leased to a charter ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
booster club fee5/26/2011
  Q: I have read most of your previous Q&A's and I'm left with a few questions. Under the 501(c)(3) ...
  A: A 501(c)(3) organization may charge a fee to be a member of the organization, but, as you indicated ...
deciding the salaries of nonprofit employees5/26/2011
  Q: who decides the salary of nonprofit employees and are there any rules as to the amount or percentage ...
  A: Unless the articles of incorporation or bylaws provides otherwise, the board of directors usually ...
Dissolving 501(c)(3)5/26/2011
  Q: I am a board member of a 501(c)(3) (not a foundation) that is going to cease operations. We are a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
individual accounts for pass-through funding5/25/2011
  Q: I have read conflicting accounts on whether a non-profit (501c3) booster club can maintain ...
  A: Individual accounts are allowed for pass-through funding, for example for fees paid by parents. My ...
Conflict of Interest5/24/2011
  Q: In 2008 a situation was set up where a church was converted into artists’ studios. Rents went to ...
  A: A conflict of interest is present whenever a director has a material personal interest in a ...
MIstake on Form 10235/24/2011
  Q: A review of our records shows that our organization made some errors in reporting the racial make up ...
  A: It appears that annually you would be filing Form 5578, Annual Certification of Racial ...
MIstake on Form 10235/24/2011
  Q: A review of our records shows that our organization made some errors in reporting the racial make up ...
  A: How long ago did the organization receive exemption determination as a result of that 1023 filing? ...
Setting up a Sports Team as non-profit org5/23/2011
  Q: How do I go about setting a youth soccer team as a non-profit organization? Do I only need an EIN or ...
  A: If you want donors to be able to deduct donations and not to have your sales income, if any, taxed ...
non-profit booster club5/22/2011
  Q: I am volunteering to help a fledgling gymnastics team that is attempting to set up its very first ...
  A: Either way. It is not a tax issue either way. Harvey Mechanic, Attorney at Law - ...
Unclear Open Meeting Regs for Non Profit in PA5/22/2011
  Q: The municipality is giving us the space to build the skatepark & we are donating the entire park. ...
  A: As for your state law on Open Records and Open Meetings See ...
intl 501c35/22/2011
  Q: I am copying this from someone but my question is the same. I am an American in Belgium affiliated ...
  A: See www.irs.gov/pub/irs-tege/eotopick92.pdf starting on the bottom of page 4 under the heading "2. ...
501c3 & 509a1 Skatepark meeting could be heated5/22/2011
  Q: We are trying to hold a design meeting on an approved skatepark. There are several people in ...
  A: Give me the state and I will look at the site as to your state's open meeting law. Harvey ...
non-profit booster club5/22/2011
  Q: I am volunteering to help a fledgling gymnastics team that is attempting to set up its very first ...
  A: Yes. A 501(c)(3) booster organization may collect pass through fees. Just make sure that the ...
501c3 & 509a1 Skatepark meeting could be heated5/22/2011
  Q: We are trying to hold a design meeting on an approved skatepark. There are several people in ...
  A: As for your state law on Open Records and Open Meetings See ...
school team travel reimbusement5/21/2011
  Q: We have a team of kids that won an extracurricular school competition at the state level and we are ...
  A: The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses ...
Earmarked funds5/21/2011
  Q: Can fund obtained through a fundraiser involving the local Community be earmarked for a specific ...
  A: Yes. There is no problem with that. There is a problem is funds are earmarked for use of an ...
Athletic Booster Club5/20/2011
  Q: I have recently become a member of my son's high school Football booster club. There are no paid ...
  A: As a division of the school district, certainly the school district should require detailed ...
501c3 and foreign govt. support5/19/2011
  Q: One function of our non-profit is to provide foreign language instruction to children. Is there any ...
  A: A U.S. 501(c)(3) organization may receive support from a foreign government. However, ...
501c3 and W-9 Form, 1099-Misc5/19/2011
  Q: We are paying for services performed by a church who is a 501c3 public charity. Do they need to ...
  A: The W-9 form with instructions is at: www.irs.gov/pub/irs-pdf/fw9.pdf What form or information ...
Board Member Compensation5/19/2011
  Q: There are a lot of general articles out there that state that federal law allows board member ...
  A: Starting on pdf page 2 of www.irs.gov/pub/irs-tege/eotopici93.pdf is a discussion by the IRS. Note ...
Suspecting a non-profit violating laws.5/18/2011
  Q: Attorney Harvey I am a board of a non-profit church. Under our church, there is another non-profit ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Fiscal Sponsorship / Articles of Inc5/18/2011
  Q: I recently set up a group that was going to go for 501(c)3 status with the local "Center for the ...
  A: It is optional. It would need to consider the expense of obtaining IRS exemption determination and ...
Board of Directors for 501(c)(3)5/18/2011
  Q: I have been volunteering for a 501(c)(3)no-kill animal shelter in southern California for several ...
  A: You can put in the name of the corporation at http://kepler.sos.ca.gov/cbs.aspx and click under ...
Inurment/excess benefit or both?5/18/2011
  Q: A board members sposue was given a part time position. Limited to part time hours for a five month ...
  A: Board members should document in their hiring decisions why they hired the spouse of the Board ...
Inurment/excess benefit or both?5/18/2011
  Q: A board members sposue was given a part time position. Limited to part time hours for a five month ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
Recording of Amendments to Declaration & By-laws5/17/2011
  Q: I live in a Homeowners Association in NY State that is classified as a not-for-profit corporation ...
  A: I have in my profile that this free forum is only for relevant federal exempt issues of 501(c)(3) ...
refunding a donation5/17/2011
  Q: I am the president of a small, religious 501(c)(3). We received a $2,500 donation in 2010 from a ...
  A: The issue of donor refunds when the donor was able to deduct donations is different as a church does ...
501(c)7 income5/16/2011
  Q: I am a member of a 501(c)7 social club (country club). How would income from a mineral lease be ...
  A: The use of the funds is not the issue. IRS Publication 598 "Tax on Unrelated Business Income of ...
Funds Raised5/16/2011
  Q: I read your summary of the IRS regulations relating to 501(c)(3) booster organizations and I have a ...
  A: That appears to be enough to constitute misrepresentation but then the question is how to evaluate ...
Funds Raised5/16/2011
  Q: I read your summary of the IRS regulations relating to 501(c)(3) booster organizations and I have a ...
  A: You cited to something as to booster organizations and you are correct that you do not have to pay ...
Clarification of what the IRS calls Cooperative operation5/15/2011
  Q: This California Athletic Booster organization is a 501(c)3 non-profit. On their website they have ...
  A: You are welcome. Sorry for that bad link. Now My summary of IRS regulations relating to 501(c)(3) ...
Athletic Booster Club5/14/2011
  Q: I have recently become a member of my son's high school Football booster club. There are no paid ...
  A: Sorry for the bad link My summary of IRS regulations relating to 501(c)(3) booster organizations is ...
Clarification of what the IRS calls Cooperative operation5/14/2011
  Q: This California Athletic Booster organization is a 501(c)3 non-profit. On their website they have ...
  A: You are welcome. Earlier, when you wrote "donated amounts above $10 goes back to the athletes ...
Clarification of what the IRS calls Cooperative operation5/14/2011
  Q: This California Athletic Booster organization is a 501(c)3 non-profit. On their website they have ...
  A: First the donors should be informed that their donations are not deductible. As to charitable ...
grants from one public charity to another 5/14/2011
  Q: Can a Section 501(c)(3)nonprofit, charitable organization, operating in a realm of arts donate, ...
  A: I am assuming both organizations are public charities (neither is a private foundation). You can ...
Non-participation fee5/13/2011
  Q: Hopefully this is a quick and easy question for you. My daughter is on a 501c3 designated swim ...
  A: Sorry, that link may not have worked earlier because it was going over from one line to another ...
Non-participation fee5/13/2011
  Q: Hopefully this is a quick and easy question for you. My daughter is on a 501c3 designated swim ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Tax deductible Gift5/13/2011
  Q: I am looking for IRS documentation that states how the Foundation can handle the following: If you ...
  A: As to charitable deductions, see IRS Publication 526 "Charitable Donations" which is available at: ...
Donations to cover volunteer member expenses5/13/2011
  Q: We are a small 501c3 that offers our services to assist law enforcement agencies in locating lost or ...
  A: That potential sponsor may decide not to continue with the funding when the sponsor realizes that ...
Membership recruitement5/13/2011
  Q: Can a 501c7 advertise for members?
  A: It appears that you are referring to a 501(c)(7) recreational or social organization about which the ...
Dealing with the IRS in the future5/12/2011
  Q: I am highly considering starting a non-profit organization as I believe in my cause. I have heard ...
  A: If the IRS audits an exempt organization they first send out a letter and then make a follow-up call ...
Baseball Player Involuntarily Removed by ORG claiming to be a 501(c)(3)5/12/2011
  Q: A youth baseball organization that claims to be a 501(c)(3) non-profit organization recently made ...
  A: There are two issues. The first is about refunds of fees paid. I have in my profile that this ...
501 c 3 Booster Club - returning money to parents5/11/2011
  Q: We are located in California and have a Non-profit 501c3 Booster Club at our gymnastics facility. ...
  A: You are welcome. There is still a problem as you wrote that "parents fundraise [work for the ...
501 c 3 Booster Club - returning money to parents5/11/2011
  Q: We are located in California and have a Non-profit 501c3 Booster Club at our gymnastics facility. ...
  A: Neither option is proper. My summary of IRS regulations relating to 501(c)(3) booster organizations ...
Motorcycle Club5/11/2011
  Q: I am the business manager for a motorcycle club in Central California. we are wanting to form a non ...
  A: Generally motorcycle clubs are organized as a 501(c)(7) recreational or social organization about ...
Automatic Revocation, Reinstatement5/11/2011
  Q: Due to misinformation, I'm at risk of losing my 501c3 status granted in 2007. I have not ...
  A: See www.irs.gov/charities/article/0,,id=221600,00.html which is the IRS' "Automatic Revocation of ...
tax deductibility5/11/2011
  Q: We have a 501c3 nonprofit which provides services to many disabled individuals. We get questions ...
  A: As to charitable deductions, see IRS Publication 526 "Charitable Donations" ...
time of review of the application5/10/2011
  Q: I just would like to know how long does it take for IRS to review an application (average practice) ...
  A: I am assuming you are asking about the IRS process for the 1023 applications submitted. They take ...
creating a 501 c) 3) from France5/10/2011
  Q: We are ruling a non profit organization under french law with humanitarian scope. We have some ...
  A: See www.irs.gov/pub/irs-tege/eotopick92.pdf starting on the bottom of page 4 under the heading "2. ...
Library Coffee Shop operated by Friends of the Library5/10/2011
  Q: Friends of the Library, a 501c3 organization that supports public library services, has been given ...
  A: You are welcome. Certainly you would report any book sales as program service revenue if the ...
Library Coffee Shop operated by Friends of the Library5/10/2011
  Q: Friends of the Library, a 501c3 organization that supports public library services, has been given ...
  A: The for-profit business is not taking title to the books and is simply passing funds received to ...
Participant's Fundraising5/9/2011
  Q: Firstly, your answers and this message board are so insightful. My scenario: A volunteer for a ...
  A: Donations to 501(c)(3) organizations are generally deductible. However, when funding is given with ...
Service revenue5/7/2011
  Q: We have a non-profit in which all service revenue has been paid from a contract grant. On 990ez ...
  A: Links to Form is through: www.irs.gov/pub/irs-pdf/f990ez.pdf and the instructions at: ...
Baseball team TIN to open bank account5/5/2011
  Q: We are a new baseball team and need to open a bank account. Checks will be made out to the baseball ...
  A: If you don't expect donations to be deductible, then you can apply for EIN online at the IRS SS-4 ...
Sponsorship via Non-Profit5/5/2011
  Q: If I have a non profit artist collective, can I ask for sponsorship for a band and have what a ...
  A: A company certainly would be able to deduct a donation to a 501(c)(3) organization even if it ...
Sponsorship via Non-Profit5/5/2011
  Q: If I have a non profit artist collective, can I ask for sponsorship for a band and have what a ...
  A: I am assuming that you are referring to a 501(c)(3) organization, but first please confirm it is a ...
Who gets the monies from fund raiser?5/5/2011
  Q: Members of a Club's basketball team held several dinner fundraisers at the club. The Club is ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Required Booster Club Membership5/5/2011
  Q: At the gym where our child trains, once you become part of team you are encouraged to join the ...
  A: If the fund is established to operate for many years, instead of simply for a few years to help a ...
non-profit scholarship5/5/2011
  Q: I am a member of a 501(c)(3) organization - a booster club set up as a non-profit in Texas. ...
  A: A 501(c)(3) organization may be set up solely to grant scholarships or partially to grant ...
Required Booster Club Membership5/4/2011
  Q: At the gym where our child trains, once you become part of team you are encouraged to join the ...
  A: If you are referring to a booster 501(c)(3) organization, that operation is not legal. My summary of ...
Boosters at a "for profit" AND non profit gym5/4/2011
  Q: My daughter's gym in Ohio is for profit. However, they have established the "booster" portion as ...
  A: See www.irs.gov/pub/irs-tege/eotopica93.pdf starting on pages 11 "Private Facility Owners" which ...
Loan arrangements between tax exempt organizations and UBIT5/4/2011
  Q: Sorry Harvey.The system didn't allow me the put a new information. so I re-wrote the question. The ...
  A: It may be taxable if your organization obtained funds by borrowing them. IRS Publication 598 "Tax on ...
Loan arrangements between tax exempt organizations and UBIT5/4/2011
  Q: Sorry Harvey.The system didn't allow me the put a new information. so I re-wrote the question. The ...
  A: Ok. They are both 501(c)(3) organizations that are public charities. One may give funds to the ...
Membership vs Directorship5/4/2011
  Q: I am starting a Theatre company and am considering a Membership structure. I don't have a clear ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Transfer of assets ofter non-profit closes5/4/2011
  Q: I have been told several times that when a non-profit goes "out of business" that they cannot sell ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
Loan arrangements between tax exempt organizations and UBIT5/4/2011
  Q: Sorry Harvey.The system didn't allow me the put a new information. so I re-wrote the question. The ...
  A: I don't know how you determined by reading Publication 557 that the organizations are not public ...
Re: Taxing volunteer time5/4/2011
  Q: I have a very unique situation to which I am trying to get a correct answer. I am a volunteer at our ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Re: Taxing volunteer time5/4/2011
  Q: I have a very unique situation to which I am trying to get a correct answer. I am a volunteer at our ...
  A: From what you wrote you have made what the IRS calls and "assignment of income". The U.S. church is ...
501(c)(3) rec league5/3/2011
  Q: There is a recreational sports league in out area that has taken an independent/travel team under ...
  A: It is not proper for a 501(c)(3) organization to have funds, either income or expenses, outside of ...
501(c)(3) rec league5/3/2011
  Q: There is a recreational sports league in out area that has taken an independent/travel team under ...
  A: I don't know what you mean by "umbrella". What you are referring to may be what is called by the IRS ...
definition of a "mission society"5/3/2011
  Q: Greetings, Harvey. Thanks for your assistance. I am Exec Dir of One Door Ministries. We are a ...
  A: Good morning, Steve. An organization ordinarily files its notice by filing a properly completed ...
Ioan arrangement between two tax exempt organization, UBIT5/3/2011
  Q: Our non profit-tax-exempt organization wants to help another tax exempt organization over 1 million ...
  A: It is not clear from what you wrote that both organizations are public charities, even though you ...
affiliating non-profits under umbrella 501c35/2/2011
  Q: I have been working with a small animal group that is incorporated as a N/P in NJ, though the hands ...
  A: It appears that the group in Puerto Rico want to take advantage of the organization that already has ...
Individual fundraising accounts5/2/2011
  Q: I have read numerous postings about 501(c)3 fundraising to defray individual costs and yet am having ...
  A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to engage in sales ...
Ioan arrangement between two tax exempt organization, UBIT5/2/2011
  Q: Our non profit-tax-exempt organization wants to help another tax exempt organization over 1 million ...
  A: The term "private organzation" is not what I need to know. I need to know which, if any, are ...
Ioan arrangement between two tax exempt organization, UBIT5/2/2011
  Q: Our non profit-tax-exempt organization wants to help another tax exempt organization over 1 million ...
  A: I would need to know the subsection of IRC 501(c) under which each organization was incorporated. ...
PASTORS LOVE OFFERING5/2/2011
  Q: Each month, we designate a Sunday as Pastors Love Offering day. In order for the offering given to ...
  A: They are not tax-deductible. As to charitable deductions, see IRS Publication 526 "Charitable ...
Revocation of Non Profit Status4/30/2011
  Q: Is it true that a non profit organization can lose its non profit status because of failure to ...
  A: The IRS will not revoke exempt status because a nonprofit does not strictly adhere to bylaw items ...
Non-profit4/29/2011
  Q: Is it possible to set up a 501(3)(c)(I'm in AZ) and then use those funds to benefit other charities ...
  A: Yes, there are many 501(c)(3) organizations that do not engage in their own charitable activities ...
Stealing from a scholarship fund4/29/2011
  Q: I know of a family that holds a softball tournament annually, they claim it is to raise funds for a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Loan agreement between tax exempt organizations and excess benefit4/29/2011
  Q: We are a non profit-tax exempt(501 c 3) organization and planning to get a loan in the amount of 1,5 ...
  A: Is that other tax exempt organization a 501(c)(3) organization that is a public charity? If not, let ...
Filling Application 1023 late4/29/2011
  Q: If you file beyond the 27 month period is it better to try to fall within the exceptions and get ...
  A: You are welcome, Lynn, I have not seen any statistics as to the IRS abating the penalties, but I ...
Filling Application 1023 late4/29/2011
  Q: If you file beyond the 27 month period is it better to try to fall within the exceptions and get ...
  A: You are welcome. I have not seen any statistics as to the IRS abating the penalties, but I have ...
Filling Application 1023 late4/29/2011
  Q: If you file beyond the 27 month period is it better to try to fall within the exceptions and get ...
  A: Generally the option of accepting 501(c)(4) status is fine for the organization. "Organizations that ...
fundraisers to benefit a 501(c)34/29/2011
  Q: I am writing because I would like to know if an individual wanted to hold a bake sale, wine tasting ...
  A: No problem. You don't have to apologize, Sophia, as I don't expect that most people will be reading ...
fundraisers to benefit a 501(c)34/28/2011
  Q: I am writing because I would like to know if an individual wanted to hold a bake sale, wine tasting ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Volunteers or Compensated Workers?4/28/2011
  Q: In a 5013c corp(NYS volnteer fire department)is it legal to give flowers, candy, bonds and gift ...
  A: By members, I am assuming you are referring to persons who work for the volunteer fire department. ...
Surplus of funds4/28/2011
  Q: I saw one of your answers regarding a surplus. I sit on a softball board and our league has over ...
  A: I am assuming that your league is a 501(c)(3) organization. I don't know which answer you have ...
501(c)(3) selling goods4/27/2011
  Q: I work for a 501(c)(3) that is registered in the US and also in Nicaragua as a non-profit. One of ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
Re- financing Church Mortgage4/27/2011
  Q: We are going to re-fi the church mortgage, in so doing, we will have a closing. Do we have to apply ...
  A: Please note that certain enumerated denominations need to follow specific rules, which for each is ...
Non-Profit By-law Amendments4/27/2011
  Q: I am newly elected President of a non-profit 501 (c)(3) corporation. Our by-laws have not been ...
  A: You may either replace the whole of the bylaws or change part. If you change just part, then that ...
Booster for local rec dept swim team4/27/2011
  Q: Parents of our town's recreation department's swim team are incorporating and seeking 501(c)(3) ...
  A: No. As long as the participants are youth and the membership is open, then it would be treated by ...
Re- financing Church Mortgage4/27/2011
  Q: We are going to re-fi the church mortgage, in so doing, we will have a closing. Do we have to apply ...
  A: Is the church a corporation? If so, was it incorporated under the Religious Corporation Law? If ...
501(c)(3) granting scholarships4/27/2011
  Q: We are a high school booster club, 501(c)(3) status is active, all parents are considered members. ...
  A: You are welcome. I suggest your organization not call it a scholarship but that you call it a ...
501(c)(3) granting scholarships4/27/2011
  Q: We are a high school booster club, 501(c)(3) status is active, all parents are considered members. ...
  A: Yes, it is not only legal, but it is favored by the IRS as showing your charitable nature. Harvey ...
Financial disclousure4/26/2011
  Q: Harvey, upon becoming member of a 501c3 religious group, what rights does a member have in ...
  A: To Search State Corporations' Records http://ccfcorp.dos.state.fl.us/search.html and you will see ...
Financial disclousure4/26/2011
  Q: Harvey, upon becoming member of a 501c3 religious group, what rights does a member have in ...
  A: There are two types of religious organizations according to the IRS treatment. One is a "church" ...
Missions Trip - Donated Money4/25/2011
  Q: If money (cash) was donated to a 501(c)(3) missions ministry earmarked for an individual (without ...
  A: Your question was about a donation "earmarked for an individual (without expectation of a tax ...
Missions Trip - Donated Money4/25/2011
  Q: If money (cash) was donated to a 501(c)(3) missions ministry earmarked for an individual (without ...
  A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
Fundraising issues4/25/2011
  Q: Our youth sports organization is holding a voluntary fundraiser in which hoagies are sold for $6.50 ...
  A: If the sellers pay taxes on their gains then that would be legal. The IRS has written: ---Start of ...
Do I need to change my non-profit status?4/23/2011
  Q: Greetings, my daughter and I formed a 501c(3) the first of 2010. We formed this for educational ...
  A: You are welcome. I hope you get back at least the amount that was stolen. As for changing ...
Do I need to change my non-profit status?4/23/2011
  Q: Greetings, my daughter and I formed a 501c(3) the first of 2010. We formed this for educational ...
  A: I am assuming that your organization has received a determination letter from the IRS that it is ...
Control of a 501c3 by a for-profit corporation4/22/2011
  Q: Can a for-profit corporation own or control a non-profit 501c3 entity? Are there conflicts of ...
  A: A nonprofit organization is not owned. It is, however, controlled by its Board of Directors and any ...
Amending non-profit bylaws4/22/2011
  Q: We are a California 501(c)(3) and are revising our bylaws. Is it necessary to file the revised ...
  A: No. http://law.justia.com/codes/california/2009/corp.html starting at section 5002 is the ...
Conflict of Interest4/22/2011
  Q: Is there a conflict of interest if the same board members of a 501c3 are board members/stockholders ...
  A: A conflict of interest is present whenever a director has a material personal interest in a ...
Purchasing an existing 501c3 corp.4/22/2011
  Q: To set up and manage a non profit corp.; wastes lots of time and money--and you are not reaching ...
  A: As the work is going to be online, the corporation may be located in any state. There are ways to ...
Salaries Percentage4/22/2011
  Q: There is a local non-profit here in Florida that has paid 88% of donations towards salaries/wages ...
  A: Yes, that raises eyebrows and people who are thinking about donating should check sites like ...
preschool existing under church's umbrella4/21/2011
  Q: and thank you in advance. We have a preschool in our church that is part of us. It is considered a ...
  A: It appears that the preschool is not separately incorporated as it is using the church's EIN. The ...
Board Member tax expemtion4/20/2011
  Q: If a board member is purchasing airline tickets to a board meeting, can they use our organizations ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Access to previous Board of Director meeting minutes4/20/2011
  Q: I recently joined as a Member of the Board of Directors of a 501(c)(3)organization in the State of ...
  A: The New York Not-for-Profit Corporation Law revised 2010 is available at: ...
Access to previous Board of Director meeting minutes4/20/2011
  Q: I recently joined as a Member of the Board of Directors of a 501(c)(3)organization in the State of ...
  A: You are correct. For Director's Rights See http://bit.ly/kEelH which takes you to page 35 of a book ...
Foundation Assets Charging Rent4/19/2011
  Q: I work for a non profit that has a separate foundation and operating entity. Both separate ...
  A: By "public 501 c 3", I am assuming that you are referring to a public charity 501(c)(3) ...
Foundation Assets Charging Rent4/19/2011
  Q: I work for a non profit that has a separate foundation and operating entity. Both separate ...
  A: I would need to know the subsection of IRC 501(c) under which each organization was incorporated. ...
501(c) 3 Distribution of Funds4/19/2011
  Q: Our martial arts school has a amateur, youth team that attends a National Championship every year. ...
  A: Work for benefits is taxable as employment compensation. Such an operation would be what the IRS ...
tax incentives for private owners renting to non-profit school?4/19/2011
  Q: Are there any tax incentives or credits available to private landlords who choose to rent their ...
  A: As to charitable deductions, see IRS Publication 526 "Charitable Donations" ...
Disbursement conflicts4/18/2011
  Q: I want to establish a 501(c)(3) charity for scientific purposes which supports an international ...
  A: Simply that Board members are similar does not create what is called a conflict of interest. You ...
Dissolution4/18/2011
  Q: What happens to intellectual property such as copyrighted material if a non profit votes to ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Coaches sitting on booster boards4/16/2011
  Q: Our school has recently started a booster club. In organizing this club, the coach has made the ...
  A: I am assuming that the Board has at least 3 unrelated members. Therefore, it is legal to have the ...
Potential of loss of a 501(c)(3) Status4/16/2011
  Q: We are a non-profit community theatre. We have a board of directors. On our board we have a member ...
  A: I don't see any issue here that relates to a possible violation of IRS regulations for 501(c)(3) ...
Non profit employees4/15/2011
  Q: I work for a non profit that is in a financial hardship. Our Director recently informed all managers ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Distribution of funds in foreign country (cont.)4/15/2011
  Q: I did read www.irs.gov/pub/irs-wd/0504031 last night but reviewed it again this morning at your ...
  A: Of course that quote you gave in the second paragraph only refers to distribution of funds to ...
Team Funds4/15/2011
  Q: Good Afternoon - I have two non-profit organizations disputing funds. Organization (A) had 6 teams, ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Distribution of funds in foreign country4/15/2011
  Q: I am the coordinator for a small, US-based 501c3 public charitable organization that helps the poor ...
  A: Ok. I suggest then that you have a written contract with her detailing her use of the funds that you ...
Distribution of funds in foreign country4/15/2011
  Q: I am the coordinator for a small, US-based 501c3 public charitable organization that helps the poor ...
  A: Ok. Next I will need to know whether you treat her as your employee or whether you treat her as an ...
Distribution of funds in foreign country4/15/2011
  Q: I am the coordinator for a small, US-based 501c3 public charitable organization that helps the poor ...
  A: That revenue ruling is not applicable as you are not sending the funds to a person who is a ...
Exempt Org/Non-profit Requirement4/14/2011
  Q: Our small nonprofit org has applied for exempt status under § 501(c)(3) and is now trying to ...
  A: The IRS would treat such a corporation as any other corporation and, therefore, it would be filing ...
I have a Museum????4/14/2011
  Q: Harvey Mechanic, My name is Phelan Chisolm of Nevada Industry Excellence, a university (UNLV) based ...
  A: Most grantmakers only want to give funds to public charities. If Mr. Caruso wants to form such a ...
Laws Pertaining to Churches4/13/2011
  Q: We have had a disagreement with the elders in our church. We have had NO kind of event wherein there ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Fringe benefits for volunteers4/13/2011
  Q: As a 501 (C)(3) are we allowed to count fringe benefits for volunteers just as we count their ...
  A: I don't know what you mean by "counting". The word "counting" is not applicable in tax law. Also ...
What is Considered Public Support?4/12/2011
  Q: I am creating a 501(c)(3) charitable non-profit (an animal rescue). This non-profit expects to have ...
  A: See www.irs.gov/pub/irs-pdf/p557.pdf starting on page 30 "Qualifying as Public Supported" a. In ...
Fringe benefits for volunteers4/12/2011
  Q: As a 501 (C)(3) are we allowed to count fringe benefits for volunteers just as we count their ...
  A: It appears that you are referring to donations by individuals or companies that are given not to the ...
severance or gifting as appreciation4/12/2011
  Q: Our pastor of 18+ years is leaving the church on good standings and the membership would like to ...
  A: The membership should, independent of the church, collect the funds. The funds should not be coming ...
intellectual property: private vs organization4/11/2011
  Q: I have resigned from a 501 c 3 non-profit. I have taken many pictures both in the US and Kenya and ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Public Benefit Housing4/10/2011
  Q: We would like to buy a apartment building that, as people move out, be transition to those that work ...
  A: I do not see that as charitable or public benefit, as giving benefits to employees of 501(c)(3) ...
Church rental property4/10/2011
  Q: My church has been left a small house. We are in a tourist area and would like to contract with a ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
501(c)6 Assets on Hand4/9/2011
  Q: Would this determination also apply to the assets on hand for a 501(c)6? I'm citing a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Time constraint to use donated funds?4/8/2011
  Q: We have a fund set up where members can donate and in turn we use that for educational purposes, ...
  A: I am assuming from what you wrote to me that the organization is not a private foundation (you can ...
'selling' items to support a 501(c)(3)4/8/2011
  Q: I have recently been put on the board of directors for a non-profit community theater. Before a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
MAXIMUM DOLLARS ON HAND4/7/2011
  Q: We are a non profit organization (not 501c3)How much money are we allowed to have on hand at the end ...
  A: There is no restriction for one year's accumulation of funds. If you do it for many years, then the ...
Non-profit lease of for profit vehicle4/6/2011
  Q: Can a non-profit lease a vehicle from a for profit that is owned by the non-profit? Can the for ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Transfer 501c3 funds to 501c194/6/2011
  Q: We have both a 501c19 certified organization and a 501c3 organization under the auspices of our ...
  A: Your proposal is not feasible as the present 501(c)(3) organization, holding funds for charitable ...
Transfer 501c3 funds to 501c194/6/2011
  Q: We have both a 501c19 certified organization and a 501c3 organization under the auspices of our ...
  A: I am confused, because in the last sentence you referred to a situation where the (c)(19) was simply ...
Church subleasing building4/6/2011
  Q: Our church recently bought and renovated a portion of an old supermarket and now holds regular ...
  A: See page 9 of IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
Can court appoint a free lawyer for poor non-profit organizations4/6/2011
  Q: I am associated with a non-profit organization, who are sued twice by a few people, after their ...
  A: I don't know of any right to be provided with free legal representation, except for criminal ...
Obtain a legal non-profit status for my ministry without incorporating4/6/2011
  Q: Greetings! I am a bi-vocational Assist. Pastor of a Baptist church whom the Lord has led to start a ...
  A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Blood Banks4/6/2011
  Q: In reference to blood banks in New Jersey....are their financial records public knowledge?....if so ...
  A: You are welcome. You are right that the information is not of public knowledge. Right. at 1.B.4, ...
Dissolution of a 501 (c) 3 - Assets4/5/2011
  Q: I am working with a company who is wanting to set up a non-profit organization. This organization ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Not Having 501(c)(3)4/5/2011
  Q: I am currently starting up my non-profit but I do not have my 501(c)(3). Is it illegal to start ...
  A: The IRS may take months to issue the exemption determination letter, but as long as you file your ...
Booster Club Individual Accounts4/5/2011
  Q: Our Booster organization (all star cheerleading) is filling out paperwork to become a 501(c)(3). ...
  A: They are simply lucky that the IRS has not been auditing them. They are violating a basic principle ...
Would it be possible to create a non-profit...4/4/2011
  Q: I would like to know if it is possible to turn a nationally competitive sports team into a ...
  A: In the leading case elucidating the purposes considered exempt under Sec. 501(c)(3), the Supreme ...
Would it be possible to create a non-profit...4/4/2011
  Q: I would like to know if it is possible to turn a nationally competitive sports team into a ...
  A: The IRS code does not have any provision for a sports team to be a 501(c)(3) organization (which ...
Leftover funds4/4/2011
  Q: If our youth sports league has funds left over at the end of the season is that considered profit? I ...
  A: It does not matter whether you call it a "surplus" or "profit". I have in my profile that this free ...
Blood Banks4/4/2011
  Q: In reference to blood banks in New Jersey....are their financial records public knowledge?....if so ...
  A: As for New Jersey law on Open Records and Open Meetings See ...
tax write-offs for donations of real estate4/3/2011
  Q: Can an owner sell a building to a qualified (501-c-3_ charity with a portion paid for in cash and a ...
  A: Yes. As to charitable deductions, see IRS Publication 526 "CharitableDonations" ...
non-profit and stipends to board members and volunteers4/2/2011
  Q: We are a non-profit 501c3 in California. Can you give stipends to board members and volunteers to ...
  A: When you refer to "help pay for their travel expenses" you are referring to what the IRS calls ...
Non-profit lease of for profit vehicle4/1/2011
  Q: Can a non-profit lease a vehicle from a for profit that is owned by the non-profit? Can the for ...
  A: I would need to know the subsection of IRC 501(c) under which the nonprofit organization was ...
Scholarship Fund4/1/2011
  Q: I would like to start a scholarship fund for individuals for anyone pursuing higher education . What ...
  A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
501c3 Diaster Relief Fun Transfer to Foreign NGO4/1/2011
  Q: We are a 501c3 education/cultural charity organization. The mission does not include aid for ...
  A: 1. A 501(c)(3) organization may engage in any activities that are allowed by Section 501(c)(3) of ...
In violation of 501c??4/1/2011
  Q: This question comes from Illinois..Can an athletic club attaching itself to a high school be a 501c ...
  A: http://law.justia.com/illinois/codes/chapter65/2280.html has the Illinois General Not For Profit ...
Requesting an audit of an Athletic Booster Club4/1/2011
  Q: I am a member of an athletic booster club where I believe there may have been fraud and/or ...
  A: You may certainly request or demand an audit, but the organization is not required to audit on your ...
Band Booster Incentives3/31/2011
  Q: School District budgets $$$. Band charges annual Band Fees to students. Band Boosters and students ...
  A: You are welcome. When 501(c)(3) organization's grant scholorships, they must do so, following ...
Non-Profit Expansion3/31/2011
  Q: I have a non-profit organization that I would like to take to a National Level, however I am unsure ...
  A: I am somewhat familiar with Boys & Girls Clubs of America. They have a website at: ...
Form 1023 - date of formation vs. founding3/31/2011
  Q: I run a theater company that was founded four years ago, and has been run out of a separate ...
  A: The corporation has only been in existence since September of 2010 and that is what the IRS is ...
Non-Profit Expansion3/31/2011
  Q: I have a non-profit organization that I would like to take to a National Level, however I am unsure ...
  A: I do not advise that you have only one entity (like one corporation) as then all of the national ...
Band Booster Incentives3/31/2011
  Q: School District budgets $$$. Band charges annual Band Fees to students. Band Boosters and students ...
  A: My summary of IRS regulations relating to 501(c)(3) booster organizations is at: ...
Non-Profit Expansion3/31/2011
  Q: I have a non-profit organization that I would like to take to a National Level, however I am unsure ...
  A: Generally we arrange such affiliations by not only service mark licensing but also by contracts with ...
Board Members3/30/2011
  Q: I would like to know if someone that is married to an emplyoee of the Gym or to a coach can be on ...
  A: Most states, and the IRS, would object if the Board was controlled by persons who are related by ...
Church Employee Minimum Wage3/29/2011
  Q: Is a church required to pay minimum wage for custodial services, or can we "trade out" health ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Contribution Not Voluntary 3/29/2011
  Q: My children attend a private school and their sports teams occasionally make trips that are beyond a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
operating a child care withing a 501C3/29/2011
  Q: I would like to know if it is legal to run a privately owned for- profit, with own tax ID# child ...
  A: A 501(c)(3) organization like a church may lose its exemption if it gives too much private benefits. ...
501c33/28/2011
  Q: I just became the President of the gay and lesbian center in Springfield Missouri. We have a Pride ...
  A: It appears that the fictitious name is registered to your organization, which I will assume is a ...
501c3 participation in an event?3/28/2011
  Q: Can a 501c3 participate in an event put on by a non 501c3 for a different 501c3. ALL funds raised ...
  A: As long as the 501(c)(3) organization does not benefit the non-exempt organization, it may ...
How does a 501c3 give a donation to a foreign person?3/27/2011
  Q: Our church wants to give a donation to a foreign person in Japan due to the disaster there. Are we ...
  A: See www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and international ...
501(c)3 contributions3/26/2011
  Q: I am founder and CEO for fiscally sponsored 501(c)3. Our fund-raising does not cover all our ...
  A: The IRS uses the phrase "fiscal sponsor" only a few times as we can see by a Google search: ...
Re: Mandated fundraising3/26/2011
  Q: Another person asked the question about mandated fundraising with the option of a buyout. I have a ...
  A: I don't know which of my previous answers you are referring to, but if a Little League has fees and ...
Swim Club Question3/25/2011
  Q: Over the last couple of days you have answered some questions regarding a 'parent run' not for ...
  A: It appears that you have read some of my previous responses. As I wrote earlier, I would be willing ...
Forming a non-profit to raise money for other non-profits3/25/2011
  Q: I'm trying to form a non-profit that will raise money to donate to other charities (as opposed to ...
  A: I would need to see the details of your budget in order to advise you that you do not have more than ...
Forming a non-profit to raise money for other non-profits3/25/2011
  Q: I'm trying to form a non-profit that will raise money to donate to other charities (as opposed to ...
  A: The IRS does not generally act in any way close to what you describe. They do, however, send out a ...
Member Benefits & Retention3/25/2011
  Q: I've read many of your earlier Q&A articles regarding inurement and private benefits regarding ...
  A: I don't believe that it seems that I have written that "the only funds usable for the benefit of ...
501c3 bankrupcy3/24/2011
  Q: My organization is considering bankruptcy or a merger. If we declare bankrupcy, can we reorganize ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
processing city expense funded contracts3/24/2011
  Q: we are a 501c non profit and would like to process city expense funded contracts...what is that and ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
Swim Club Members and by-laws New York3/24/2011
  Q: You may remember a recent post regarding the issue, but I have only two more questions: Our by-laws ...
  A: 1. That section is found at: http://law.justia.com/codes/new-york/2010/npc/article-7/701/ and the ...
Missionary Support3/24/2011
  Q: The church missions department is interested in becoming a “sending agency” for associate ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Can the Homeowner's Overrule the HOA Board by Majority of votes?3/24/2011
  Q: I live in a rural area west of Houston, Texas. We have a large subdivision that was intended for ...
  A: I have in my profile that this free forum is only for relevant federal exempt issues of 501(c)(3) ...
Family foundation donation to 501(c)(3)3/23/2011
  Q: My partner and I run a 501(c)(3). My partner's mother serves on our board of directors. The mother ...
  A: Is your 501(c)(3) organization a public charity? If it is then there is no problem with a family ...
Boosters3/23/2011
  Q: Can a non-profit Booster Club give money to a non-profit high school PTA group? ANSWER: I am ...
  A: Is the booster organization incorporated? If so, in what state? Does the club have bylaws? Has ...
Mileage reimbursement for founder3/23/2011
  Q: Mechanic, I am a founding officer and member of the board for a 501(c)3 dog rescue. I am also the ...
  A: The charitable rate of 14 cents only refers to unreimbursed expenses. Many people are confused ...
Selling Book on Amazon.com3/23/2011
  Q: We are a 501c3 public charity providing undergraduate education in the US for war-displaced students ...
  A: You may certainly sell such a book as it appears that the gross income will result in less than 5% ...
Profit Sharing with a for profit3/23/2011
  Q: As a gymnastics parents organization, are we allowed to share the profits of a meet that is hosted ...
  A: Revenue Ruling 98-15 www.unclefed.com/ForTaxProfs/irs-drop/1998/rr-98-15.pdf on the bottom of pdf ...
Non Profits Taking a Fee for Raising Funds3/23/2011
  Q: Can a 501(c)(3) raise funds for a for profit entity that is carrying out the 501(c)(3)'s purpose and ...
  A: I was not referring to the amount of the funds that the 501(c)(3) organization raises that it does ...
College student body organizations3/23/2011
  Q: I have a question pertaining to a college student body organization (religious based), which is part ...
  A: Note that the donor may not receive a deduction when that same donor decides who is to receive the ...
Non Profits Taking a Fee for Raising Funds3/23/2011
  Q: Can a 501(c)(3) raise funds for a for profit entity that is carrying out the 501(c)(3)'s purpose and ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Convert 501(c)(4) to a for-profit entity3/23/2011
  Q: Is it possible to convert a 501(c)(4) to a for profit entity. If so, what must be done and how are ...
  A: 501(c)(4) organization about which the IRS writes at: www.irs.gov/irm/part7/irm_07-025-004.html are ...
Private club parent organization formation3/23/2011
  Q: Can I start a parent organization in NY for the main purpose of making profits for the organization ...
  A: A 501(c)(3) organization may not be established to benefit a for-profit entity, but may be ...
Cemetery3/23/2011
  Q: I sit on the board of directors for a cemetery in Michigan. We have invested our perpetual care ...
  A: You are welcome. www.irs.gov/irm/part7/irm_07-025-013.html is some IRS information about 501(c)(13) ...
Church an umbrella for member ministries3/22/2011
  Q: I am a pastor of a 501c3, non-profit church in PA. Can the church's 501c3 status serve as an ...
  A: You are welcome. I have in my profile that this free forum is only for general questions relating ...
Boosters3/22/2011
  Q: Can a non-profit Booster Club give money to a non-profit high school PTA group?
  A: I am assuming both groups are 501(c)(3) organizations that are not private foundations. Then the ...
Swim club by-laws and member votes3/22/2011
  Q: My daughter is on a parent run non profit competitive swim club in New York State. Our Board of ...
  A: Ok, it appears that you are now writing that the version of the bylaws that first had the provision ...
Swim club by-laws and member votes3/22/2011
  Q: My daughter is on a parent run non profit competitive swim club in New York State. Our Board of ...
  A: You wrote, "I do not know who originally adopted the bylaws, but a meeting was held back in August ...
Church Financial Disclosure3/22/2011
  Q: What are the legal rights of a church member regarding access to church financial information, ...
  A: Starting at Louisiana Revised Statutes §12:201 is the Louisiana Nonprofit corporation law ...
Cemetery3/22/2011
  Q: I sit on the board of directors for a cemetery in Michigan. We have invested our perpetual care ...
  A: Generally the Directors of a Nonprofit Corporation are required to invest the corporation's funds in ...
one time fundraiser for high school student senior year Project3/22/2011
  Q: I am the proud mentor of 2 High School Juniors during their senior year project. A tradition of this ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Church Financial Disclosure3/22/2011
  Q: What are the legal rights of a church member regarding access to church financial information, ...
  A: Generally churches do not require access to such information. Most churches do not file form 990s ...
Church an umbrella for member ministries3/22/2011
  Q: I am a pastor of a 501c3, non-profit church in PA. Can the church's 501c3 status serve as an ...
  A: A fictitious name does not mean that a entity is formed. You are still an individual as to the IRS. ...
Church an umbrella for member ministries3/22/2011
  Q: I am a pastor of a 501c3, non-profit church in PA. Can the church's 501c3 status serve as an ...
  A: What you are referring to is called by the IRS "group exemption" . Group Exemption is discussed ...
donations3/21/2011
  Q: can a church with a 501c3 specify a dollar when asking for donation
  A: A church or any other 501(c)(3) organization may demand a certain minimum donation from someone, but ...
Swim club by-laws and member votes3/21/2011
  Q: My daughter is on a parent run non profit competitive swim club in New York State. Our Board of ...
  A: I would need to see the articles of incorporation and bylaws to determine what is meant by a club ...
spliting off ambulance service3/21/2011
  Q: Can our NYS town Fire District now the present owner of our ambulances transfer the ownership of ...
  A: The New York Not-for-Profit Corporation Law revised 2010 is available at: ...
A M Turing Award by ACM; Intel Funds 1/4 Mil.3/21/2011
  Q: I nominated a computer pioneer for A M Turing Award. He did not receive the award funded by Intel. ...
  A: Generally, nonprofit organizations may have confidential meetings. ACM is located in New York. ...
spliting off ambulance service3/21/2011
  Q: Can our NYS town Fire District now the present owner of our ambulances transfer the ownership of ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Credit cards for Non-profits?3/21/2011
  Q: Our non-profit (501c3) swim team is considering updating our bylaws to make it possible for the ...
  A: A credit card makes certain types of purchases so much easier that business, whether for-profit or ...
Designated funds3/20/2011
  Q: I attend this church that is in a fight. So I did not want my tithes spent on a lawyer, but to be ...
  A: No, they don't have a right to use it for other purposes. However, if they refuse to refund you the ...
College scholorship fund-High School Booster Club3/20/2011
  Q: Our High School Dance Team Booster Club is interested in starting a scholarship fund for the Seniors ...
  A: You need advance approval from the IRS for your method of giving scholarships if you want assurance ...
Legal Defense Fund3/20/2011
  Q: We recently started a non –profit(status pending) in NY. In our mission statement, we said that we ...
  A: You definitely need to advise the IRS that you want to amend your application for exemption. As for ...
Legal Defense Fund3/20/2011
  Q: We recently started a non –profit(status pending) in NY. In our mission statement, we said that we ...
  A: It is not clear from what you wrote whether you have your state incorporation pending or your ...
501 C3 Youth Travel Softball Team3/19/2011
  Q: We live in the state of Florida. My daughter fundraised money this fall for herself as part of a ...
  A: That first softball team was allowing individuals to collect for their own benefit without paying ...
501 C3 Youth Travel Softball Team3/19/2011
  Q: We live in the state of Florida. My daughter fundraised money this fall for herself as part of a ...
  A: Their claim is not valid. However, the IRS may have a problem with a 501(c)(3) organization allowing ...
organizing nonprofit benefit events3/19/2011
  Q: If an individual is organizing a benefit for our 501(c)(3) charitable nonprofit, and she solicits ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Donations from pools of individuals3/18/2011
  Q: I am the Treasurer of a 501(c)(3) organization. We recently received a single donation from a group ...
  A: In Davis v. United States, 495 U.S. 472 (1990), the Supreme Court provided guidance for the first ...
can an incorporated hockey booster club use the EIN of a youth hockey organization3/18/2011
  Q: For many years our High School Hockey team raised money through a "booster club". the club was not ...
  A: www.irs.gov/businesses/small/article/0,,id=98011,00.html has: "You will be required to obtain a new ...
Renting space owned by a non-profit3/17/2011
  Q: If our non-profit, religious school has a building that is too big for us alone, can we rent part of ...
  A: See IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
Loans from members to 501(c)(3)3/17/2011
  Q: we are thinking about soliciting no interest loans/low interest loans from members so that we can ...
  A: The previous questioner had asked "Is it permissible for a private individual to loan money at no ...
Loans from members to 501(c)(3)3/17/2011
  Q: we are thinking about soliciting no interest loans/low interest loans from members so that we can ...
  A: Please send me the url for that earlier posting of mine and then I will respond. I did a search of ...
Church nonprofit3/17/2011
  Q: Does the government provide an exempt status letter to 508 as the 501. Is there a catch? Must you ...
  A: You have asked a question about section 508, which starts out "(a) New organizations must notify ...
Loans from members to 501(c)(3)3/17/2011
  Q: we are thinking about soliciting no interest loans/low interest loans from members so that we can ...
  A: The IRS does not have any specific rules about 501(c)(3) organizations accepting loans from members ...
Followup on donating to foreign for-profit3/16/2011
  Q: For some reason, the email did not come to me so I found the answer on your section of the website. ...
  A: Now you are asking about giving funds to a foreign for-profit entity. --- Start of Excerpt --- A ...
501(c)3 Orginization3/16/2011
  Q: Can a 501(c)3 corporation donate to a 501(c)4 Corporation?
  A: No. Internal Revenue Code section 501(c)(3) which is available at: ...
mission society per IRS Pub 557?3/15/2011
  Q: Myself and two friends are the founding board members of a church. Now we are considering doing some ...
  A: See IRS Publication 557 "Tax Exempt Status for Your Organization" available at: ...
high school booster club3/15/2011
  Q: A highschool cheer squad had an account that they called a "school booster club". It was never ...
  A: The school appears to have allowed the coach to misrepresent the nature of the account. Also the ...
mission society per IRS Pub 557?3/15/2011
  Q: Myself and two friends are the founding board members of a church. Now we are considering doing some ...
  A: You have your choice to keep a missionary organization as part of the present church or to spin it ...
high school booster club3/15/2011
  Q: A highschool cheer squad had an account that they called a "school booster club". It was never ...
  A: Was the account one of the school's accounts? In other words, does the account have the EIN ...
Fiscal Sponsorship of Charitable Project3/15/2011
  Q: I have an idea for a charitable project that I would like to run, in which my LLC would be the ...
  A: The IRS uses the phrase "fiscal sponsor" only a few times as we can see by a Google search: ...
501(c)(3) sells real estate to employee3/15/2011
  Q: What are the issues related to the sale by a 501(c)(3) charity of a house it owns to an employee? ...
  A: The board of the 501(c)(3) organization only should consider how to achieve the most value for the ...
mileage reimbursement for volunteers acting in place of employees3/12/2011
  Q: As volunteers for a 501(c)3, we incur mileage performing duties that "substitute" for employees. If ...
  A: Yes, volunteers who are not independent contractors can be reimbursed at the business mileage rate. ...
Selling eBooks as a Corporate Sole3/12/2011
  Q: Can a Corporate Sole, which is a NPO but not a 501c-3, sell educational products, such as eBooks ...
  A: No, not unless the corporation sole has been organized as a 501(c)(3) organization (with IRS ...
Separating a 501(c)(3) Non-Profit3/12/2011
  Q: Both of your assumptions are correct. The current organization is incorporated and there is only ...
  A: As there is presently only one corporation, you would first establish with the state a new nonprofit ...
Separating a 501(c)(3) Non-Profit3/12/2011
  Q: Our 501(c)(3) non-profit organization would like to take one of the programs under its umbrella and ...
  A: Don't' use the word "umbrella" or the word "parent" unless you are referring to two different ...
Separating a 501(c)(3) Non-Profit3/12/2011
  Q: Our 501(c)(3) non-profit organization would like to take one of the programs under its umbrella and ...
  A: You are welcome. That form 8718 is submitted along with an application for group exemption or an ...
Separating a 501(c)(3) Non-Profit3/12/2011
  Q: Our 501(c)(3) non-profit organization would like to take one of the programs under its umbrella and ...
  A: The IRS has a procedure called "group exemption" and they discuss it starting on the bottom of the ...
501(c)3 - 'transfer'3/11/2011
  Q: I read your answer just now about not being able to transfer an existing 501(c)3 organization to ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Reporting donations as income3/11/2011
  Q: My husband and I will be working in China as English teachers this fall as part of a non-profit ...
  A: Sorry. http://codes.lp.findlaw.com/uscode/26/A/1/B/III/102 should work. As for your question ...
Reporting donations as income3/11/2011
  Q: My husband and I will be working in China as English teachers this fall as part of a non-profit ...
  A: 1. I am assuming that you are both US citizens. All of your worldwide income is reportable to the ...
selling a 501c33/11/2011
  Q: can i sell my assets of a 501 to another 501, close up and recoup monies for years of building the ...
  A: Nonprofits arrange salaries in the year of the work and before the work. It may not give funds to ...
can we buy a condo as an office?3/11/2011
  Q: Can a 501(c)3 purchase a condo (in the organization's name) to use as an office? We have a ...
  A: I don't know why you wrote that the 501(c)(3) organization may not hold legal title to the condo. ...
Sponsorship 'transfers'?3/10/2011
  Q: I really didn't know where else to look for this information. I recently took a Board position with ...
  A: Your organization needs to find out whether it gave him a donation acknowledgment before it gives ...
Sponsorship 'transfers'?3/10/2011
  Q: I really didn't know where else to look for this information. I recently took a Board position with ...
  A: It was improper for the 501(c)(3) organization to call it anything other than dues. But now the ...
non for profit charitable donations3/10/2011
  Q: Are non-profit organizations in New York State required by law to make donations to other ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
Sponsorship 'transfers'?3/10/2011
  Q: I really didn't know where else to look for this information. I recently took a Board position with ...
  A: The father paid his daughter's dues and the 501(c)(3) organization is not concerned where those ...
c6 subsidiary3/10/2011
  Q: Yes sir, as a c6 we (the parent) pay sales tax.
  A: Sorry, I should have written that I was referring to to federal income taxes not to sales tax, but ...
501c6 subsidiary3/10/2011
  Q: Can a 501c6 organization form a subsidiary and/or wholly owned subsidiary? ANSWER: A subsidiary may ...
  A: Originally you wrote, "Can a 501c6 organization form a subsidiary and/or wholly owned subsidiary?" ...
501c6 subsidiary3/10/2011
  Q: Can a 501c6 organization form a subsidiary and/or wholly owned subsidiary? ANSWER: A subsidiary may ...
  A: First I would need to know whether the subsidiary is going to be an exempt organization, and, if so, ...
501c6 subsidiary3/10/2011
  Q: Can a 501c6 organization form a subsidiary and/or wholly owned subsidiary?
  A: A subsidiary may be formed. A subsidiary in the nonprofit context means that the parent ...
Use of donations to USA nonprofit in other country3/10/2011
  Q: This question relates to the following paragraph in the IRS tax code: A section 501(c)(3) ...
  A: I did use that paragraph: --- Start of Excerpt --- A section 501(c)(3) organization will not ...
non-profit law3/9/2011
  Q: What is the maximum amount a non-profit may have on hand? Can you please provide a reference. ...
  A: I am assuming from what you wrote to me that the organization is not a private foundation (you can ...
team fundraising3/9/2011
  Q: Mechanic: We have a booster club that is a 501c3 supporting our cheerleaders. One of the teams ...
  A: The IRS does not grant exemption to an organization nor does it allow an organization to maintain ...
Out-of-State Nonprofit3/9/2011
  Q: This is a two-part1) I live here in California, but I want to register my nonprofit in the State of ...
  A: You can register in Florida but you will need then a Florida registered agent. It appears you want ...
designated giving3/9/2011
  Q: I know that it is not tax deductible for someone to make a check payable to the church and in the ...
  A: It is not unlawful to give a donation that is designated, as long as the church does not give the ...
Can a 501(c)3 organization endorse a ballot measure?3/9/2011
  Q: Our 501(c)3 organization has been asked to lend a statement of support to a ballot measure coming up ...
  A: As long as an exempt 501(c)(3) organization's total lobbying activities for legislation are less ...
501C3 selling items3/8/2011
  Q: I work for a union that is 501C3. We have hats, mugs, shirts, bags that we want to sell to our ...
  A: As the amounts that you expect are less than 1% of your total income, then the IRS would consider ...
501C3 selling items3/8/2011
  Q: I work for a union that is 501C3. We have hats, mugs, shirts, bags that we want to sell to our ...
  A: I don't know why you are so concerned that you not show even a minimal surplus on the particular ...
Salary Disclosure Non Profit3/8/2011
  Q: I work for a non profit 501 (3c) made up of a board of 13. We have 85 direct members that pay us ...
  A: Unless the articles of incorporation, bylaws, or employment contract specify otherwise, officers ...
Opening Branch Overseas3/7/2011
  Q: We are a 501c3 org, established in the US. We are currently starting an extension of our ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
receipts for use of "entire facility"3/7/2011
  Q: We have been told in the past that a building owner is not allowed to have a deduction for donating ...
  A: a. No. As to charitable deductions, see IRS Publication 526 "Charitable Donations" ...
travel sports 501's deductions if son is on team3/7/2011
  Q: can we (parents) make a tax deductable donation to a travel sports org if our son is on the team and ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Scholarship to needy athlete (not for college)3/7/2011
  Q: Our high school varsity team travels to out of town tournaments pre-season. Some athletes struggle ...
  A: The IRS only refers to Scholarships in the context of educational purposes. You can see that in the ...
501c3 entity selling retail3/6/2011
  Q: We have a 501C3 organization and would like to sell imported goods in a store that would benefit the ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
Selling assets of a 501c33/6/2011
  Q: We have a 501c3 California public benefit Corporation that has sold 20 acres of it's assets for 1 ...
  A: http://law.justia.com/codes/california/2009/corp.html starting at section 5002 is the California ...
employee sky miles3/5/2011
  Q: If an employee is required to travel for work,and the cost of travel is born by the non profit, ...
  A: Either way is fine. I work on legal issues and it is not a legal issue and I don't know how ...
501c3 entity selling retail3/5/2011
  Q: We have a 501C3 organization and would like to sell imported goods in a store that would benefit the ...
  A: Goodwill sells donated goods. Other goods would be called unrelated business. IRS Publication 598 ...
Board member requirements3/5/2011
  Q: How many board members are required in New York State in order to run a 501c rescue legally? Thank ...
  A: The New York Not-for-Profit Corporation Law revised 2010 is available at: ...
Write off rent give back to a charity3/4/2011
  Q: I understand the basic issue of Partial Interest in Property rule as defined on page 9 of IRS Pub ...
  A: You may not take a deduction for the contribution if it is based upon an agreement with Charity XYZ. ...
501(c) 3 for amateur athletic organization3/4/2011
  Q: Per Publication 557 page 28 Qualified amateur sports organization (1) 'exclusively to foster ...
  A: You did not present any facts to support a charge of inurement. Inurement (benefits to insiders) ...
A new 501c3 using a fiscal agent3/4/2011
  Q: Is it legally possible and/or advisable for a new 501c3, which just received its IRS determination ...
  A: A new 501(c)(3) organization may contract with other 501(c)(3) entities to work with. I do not, ...
501(c) 3 for amateur athletic organization3/4/2011
  Q: Per Publication 557 page 28 Qualified amateur sports organization (1) 'exclusively to foster ...
  A: 1. The assets must be transferred to a 501(c)(3) organization unless the revocation was retroactive ...
Dance Competition Team Tax Exempt3/4/2011
  Q: We are trying to figure out how to create a tax exempt organization for a dance competition team at ...
  A: If the team members are below the age of 19 then they may organize what the IRS calls a 501(c)(3) ...
subordinate status3/4/2011
  Q: In relationship to a school district and a supporting booster club. Can the booster club use the ...
  A: If the school district allows a booster organization to use its EIN (Employer Identification Number, ...
501(c) 3 for amateur athletic organization3/4/2011
  Q: Per Publication 557 page 28 Qualified amateur sports organization (1) 'exclusively to foster ...
  A: 1. A new activity that does has an activity that is more than an insubstantial part of its ...
Gymnastics booster 501(c)(3)3/4/2011
  Q: If a gymnastics booster club is denied 501(c)(3) status or doesn't seek it, is there a non-profit ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
suspicious non profit3/4/2011
  Q: Public charities whose annual gross receipts are normally not more than $5,000 may be treated as ...
  A: It appears that you found that first paragraph from one of my earlier answers. For the benefit of ...
changing a non-profit to a for profit3/4/2011
  Q: Can a 501c-3 change from non-profit to for profit?
  A: Only when the state has a procedure for the assets of the nonprofit to first be given to charitable ...
selling a 501c33/4/2011
  Q: Can you sell a 501c3 to another 501c3? What can you do if you can't sell and need to liquify?
  A: A 501(c)(3) organization is not owned and, therefore, it may not be sold. However, the board of ...
Selling food products3/4/2011
  Q: I am currently working for a non-profit home that houses and supports women as they transition out ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Community Foundation and "Pass Through Funds"3/3/2011
  Q: Are donations to one of these Pass Through Funds tax deductible? It feels like practically every ...
  A: Pass through funds to public charities are allowed as conduits. The problem would be if a 501(c)(3) ...
Non Profit Baseball/Softball assoc. Financials3/3/2011
  Q: I am currently in the process of trying to figure out where all the money is going for our Community ...
  A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
proxy voting3/2/2011
  Q: Our Articles of Incorporation reads: "No member may transfer his membership or any right arising ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Forms of reimbursement for nonprofit volunteers2/28/2011
  Q: Does it matter what form mileage reimbursement for volunteers takes? Would it be possible to ...
  A: The form does not matter. Your assumption is not correct. The charitable rate of 14 cents only ...
changing MD non-profit's name2/28/2011
  Q: How does one go about changing the name of a non-profit in Maryland? I obtained a form from the MD ...
  A: I am assuming the nonprofit organization is a corporation. It will first need to amend its ...
Returned donations2/28/2011
  Q: This past year (2010) we returned cash donations to a donor that had been given in 2005. How do we ...
  A: That is a negative to be subtracted from your other contribution incomes of 2010. Part I, line 8 is ...
booster clubs2/27/2011
  Q: under $25,000.00 can a non profit booster club(no monies to any board members, nor coaching staff), ...
  A: I don't know what you mean by a "tax benefit" for the booster organization. I was assuming, from ...
booster clubs2/27/2011
  Q: under $25,000.00 can a non profit booster club(no monies to any board members, nor coaching staff), ...
  A: Who is going to be getting the "tax benefit" that you are asking about? After you give me that ...
travel reimbursements2/27/2011
  Q: We have a 501(c)(3) and 501(c)(6) organization. I am trying to find the IRS reg that states that ...
  A: The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses ...
donations to charities2/27/2011
  Q: a relative of mine suffering from paranoia donated almost $170,000.00 to 3 separate charities after ...
  A: He can request the donations back from the charities, explaining his situation. Other than that, ...
Mileage Reimbursement2/26/2011
  Q: Here is the question. I work for a for profit company, I get reimbursed for mileage at .51/mile. ...
  A: The federal mileage rate for reimbursements for 2011 is 51 cents. ...
NPO ticket donations to other NPO's2/26/2011
  Q: I am the Box Office Manager for a symphony Orchestra. I am trying to write new policies and ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Setting up a Bank account for soccer team2/25/2011
  Q: I am the new treasurer for a competitive soccer team. This is a brand new team. I was told to open ...
  A: The IRS explains that, when applying for the Employer Identification Number, the club may check the ...
Rental Income from a Church - CA2/25/2011
  Q: We recently outgrew our church building. We rented a new space and now plan to rent out our empty ...
  A: See page 9 of www.irs.gov/pub/irs-pdf/p598.pdf wherein we see "Rents from real property... are ...
501(c)3 - Softball Organization2/25/2011
  Q: I have researched your opinion on parents being able to deduct fees and dues for their daughter who ...
  A: By benefit, the IRS also refers to items that the family would otherwise need to pay for. If a ...
Required Participation Booster Clubs2/25/2011
  Q: As a condition of participation in a specific sport, can the school require the parents to join (and ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Robert's Rules of Order - Elections2/25/2011
  Q: Can a challenge be made regarding the ineligibility of an officer elected to an officer position ...
  A: That third phrase that is in the bylaws is not the standard way to refer to the use of the Robert's ...
Robert's Rules of Order - Elections2/25/2011
  Q: Can a challenge be made regarding the ineligibility of an officer elected to an officer position ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Band Boosters2/24/2011
  Q: I recently volunteered to coordinate my daughters band trip. It is a school sponsored activity. I ...
  A: See page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf starting on the middle of pdf under the heading ...
Umbrella2/24/2011
  Q: You answered the question about umbrellas or group exemptions by giving the page 6 right column ...
  A: What you are referring to is called by the IRS "group exemption" . Group Exemption is discussed ...
booster club questions2/24/2011
  Q: . I've recently joined the board of a non-profit allstar cheerleading booster club. I am not ...
  A: You and your child can sell candles but then the profits are taxable. However, the: has written: ...
501c32/24/2011
  Q: i want to start a ministry that includes a Christian club, record label, TV show and a church. i ...
  A: In the leading case elucidating the purposes considered exempt under Sec. 501(c)(3), the Supreme ...
Donation2/24/2011
  Q: We received a $5,000 donation from a private family foundation, made at the request of the family. A ...
  A: Because the change was requested in a subsequent year, I suggest that the 501(c)(3) organization to ...
volunteer incentives2/24/2011
  Q: Mr. Mechanic, As I understand 'volunteer' needs not requesting or excepting money or incentives for ...
  A: You are welcome. You asked earlier about gifts to volunteers. Reimbursements are not considered ...
Donation2/24/2011
  Q: We received a $5,000 donation from a private family foundation, made at the request of the family. A ...
  A: As to charitable deductions, see IRS Publication 526 "Charitable Donations" ...
volunteer incentives2/24/2011
  Q: Mr. Mechanic, what if any incentives can be given to a volunteer. We have a non-profit volunteer ...
  A: ...Wage and Hour Opinion Letter FLSA2005-51 contains a discussion of what constitutes a nominal fee ...
Mileage Reimbursement2/24/2011
  Q: I am working for a non-profit organization. I travel to two counties and visit families in their ...
  A: The amount of the reimbursement is an element of your employment contract with the organization. ...
Day Care within a Church2/23/2011
  Q: Someone has approached our church with the proposition of running a child care center within the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Churches renting their space out to another businessq2/23/2011
  Q: Can a church rent out their space for another individual to use, if that person is making a profit? ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
charitable limited partnerships2/23/2011
  Q: What do you think of Charitable Limited partnerships or charitable FLP where the charity holds ...
  A: This appears to be a duplicate, but I will answer again. It is good that the organization is a ...
UBIT vs substantially related2/23/2011
  Q: The example is a nonprofit org that sells donated and purchased items to the public. If the org has ...
  A: It is not considered a full donation if someone gives inventory to a charity and requires some ...
Monetary Donation to a 501(c)(3)2/23/2011
  Q: If my business donates 12,000 dollars to a non for profit, but that same non for profit leases ...
  A: It is a donation that is deductible as a charitable contribution if there is no "quid pro quo" or ...
charitable limited partnerships2/23/2011
  Q: What do you think of Charitable Limited partnerships or charitable FLP where the charity holds ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
Boardmember Reimbursement2/23/2011
  Q: I was posed this situation. A board member moved abroad and in order to remain on the board would ...
  A: You are correct. The board member would not be giving the $5000 donation except for something else ...
Boardmember Reimbursement2/23/2011
  Q: I was posed this situation. A board member moved abroad and in order to remain on the board would ...
  A: See the IRS Publication "Charitable Donations --- Substantiation and Disclosure Requirements" ...
Church below market loans to individuals2/22/2011
  Q: Can a church issue an unsecured below market loan to an individual (church member) and if so, is the ...
  A: 1. No, the church members is not an insider solely by being a member. 2. See ...
Church below market loans to individuals2/22/2011
  Q: Can a church issue an unsecured below market loan to an individual (church member) and if so, is the ...
  A: No. Internal Revenue Code section 501(c)(3) which is available at: ...
Setting aside an Annual Meeting2/22/2011
  Q: Our 501(C)(3) held its Annual Meeting in November, and it was determined to be a valid meeting. ...
  A: That is not an exemption issue but it is an accounting issue. Even though accounting is beyond the ...
501(c)(3) theatre and a church2/21/2011
  Q: The president of our non-profit Theatre (in Illinois) said this about a suggestion by a local ...
  A: It is not the burden of the citizen in the United States to show a case that shows that it is ...
board member wages2/21/2011
  Q: Can a 501c(3) pay board members a wage if they are members of the 501c(3) ex. $100 per month to be ...
  A: Yes that is allowed for 501(c)(3) organizations that are public charities. However, the IRS does ...
Non Profit Conflict of Interest Question2/21/2011
  Q: My business partner and I own a building. It is too large for our current business and we intend on ...
  A: A conflict of interest is present whenever a director has a material personal interest in a ...
Fundraising Distributions for 501c72/18/2011
  Q: I am involved in an all-girls youth softball club w/13 players. We decided we would run it as a ...
  A: You can not amend your application until you amend your organizational documents, like your articles ...
Fundraising Distributions for 501c72/17/2011
  Q: I am involved in an all-girls youth softball club w/13 players. We decided we would run it as a ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non-Profit Name Change2/17/2011
  Q: We are a senior center under the name Gem Community Citizen's Project Group (GCCPG) dba Hayden ...
  A: I am assuming the nonprofit organization is a corporation. It will first need to amend its ...
advertising to public2/17/2011
  Q: as a elk club and 508c8 can we advertise to the public for event and invite the public or is it for ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Third party paying on donor's pledge2/17/2011
  Q: We have a donor who has made a personal pledge. Lets assume it is legally binding. We know there are ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Mileage Expense2/17/2011
  Q: I work for a small non-profit in Indianapolis, IN. We recently met with some folks who traveled ...
  A: It appears from your description that you are considering a gift to the people who travelled to ...
Mileage Expense2/17/2011
  Q: I work for a small non-profit in Indianapolis, IN. We recently met with some folks who traveled ...
  A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. You ...
501(c)(7) relationship with 501(c)(3)2/17/2011
  Q: I'm in a 501(c)(7) organization running a fundraiser for the benefit of a 501(c)(3) organization. I ...
  A: It is not correct that if a 501(c)(7) organization gives to donors that "the donation will go ...
tax information2/17/2011
  Q: we are a county sportsmens club with non-profit status. what amount of money do we have to take in ...
  A: I would need to know if your organization has received a determination letter from the IRS that the ...
Setting aside an Annual Meeting2/16/2011
  Q: Our 501(C)(3) held its Annual Meeting in November, and it was determined to be a valid meeting. ...
  A: http://bit.ly/5GolZb is the Michigan Nonprofit Corporation Act. I do not know of any attorney to ...
Setting aside an Annual Meeting2/16/2011
  Q: Our 501(C)(3) held its Annual Meeting in November, and it was determined to be a valid meeting. ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
breach of ethics2/16/2011
  Q: i have been told that using an outside source with expertise in a subject, to proof read and help ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
startup question2/15/2011
  Q: i have a friend in kenya who helps orphans in her area. her and her husband have already taken in ...
  A: A 501(c)(3) organization may send funds to a foreign nonprofit in Kenya for charitable purposes. The ...
Donations by 501(c)(3) to 501(c)(4)2/15/2011
  Q: Can a 501(c)(3) donate to a non-affiliated 501(c)(4) that both lobbies and engages in the ...
  A: A 501(c)(3) organization may only give funds if it has a particular purpose for the use of the funds ...
Asking Questions of an Officer2/15/2011
  Q: I am an officer of a national non-profit club indorporated in PA. I am being told I cannot ask ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501c3 vs. 10232/15/2011
  Q: Our Volunteer Fire Department was formed in 1940 and has never been 501c3 and we have just recently ...
  A: The Form 1023 is an application that is filed with the IRS. After the IRS reviews the application ...
501 (c) 3 sub-committees2/15/2011
  Q: I am a member of a school's booster club that raises money for all student activities. A ...
  A: A 501(c)(3) organization may have many bank accounts, but the board of directors is responsible for ...
IRS donation forms2/15/2011
  Q: Are non-profit thrift stores required to fill out IRS forms 8282 and 8283? If not why not? ...
  A: If it wants to cooperate with the donor it would complete page two of Form 8283 at Part IV and then ...
nonprofit gift cards2/15/2011
  Q: Mr. Mechanic Can you pay or give a gift cards or other means, for a volunteers time. IF so what is ...
  A: See http://viewer.zoho.com/docs/lcYOt which is a newspaper story describing a situation when the ...
Designated Giving2/14/2011
  Q: When designated funds are received by an organization is it legal to set a "sundown" time (say 5 ...
  A: If the organization adds a term to the written designation agreement as to the 5 year period, then ...
Cheer booster club2/14/2011
  Q: We want to start a cheer booster club to help offset the cost of competitions, uniforms, camps etc. ...
  A: Yes, a 501(c)(3) organization may give a grant of funds for a cheerleader who is having financial ...
Board responsibility re: past excess compensation2/14/2011
  Q: In a 501(c)(3) all independent members of the board have been replaced. The new board members find ...
  A: Intermediate Sanctions - Excess Benefit Transactions ...
501c32/14/2011
  Q: I am the treasurer of a high school band. We are a 501c3 organization. We perform fundraisers at ...
  A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to engage in sales ...
A non-profit raising funds for troubled for-profit2/14/2011
  Q: I'm a director of a 501(c)(3) charitable organization whose parent org. is a 501(c)(4) umbrella ...
  A: I suggest you read about 501(c)(4) organization at: www.irs.gov/irm/part7/irm_07-025-004.html ...
A non-profit raising funds for troubled for-profit2/14/2011
  Q: I'm a director of a 501(c)(3) charitable organization whose parent org. is a 501(c)(4) umbrella ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
checks to written to individuals or corporations by a 501(C)(3)2/13/2011
  Q: Can a 501(C)(3) who is accepting donations for a specific situation (i.e., disaster relief fund for ...
  A: Yes, but they need to follow IRS regulations. See page 13 of www.irs.gov/pub/irs-pdf/p3833.pdf ...
creating a NPO-sub under an existing S-corp2/12/2011
  Q: I am the owner of a small S-Corp that provides youth sports programing and engages in multiple ...
  A: You are welcome. The IRS rule for what nonprofits may spend money on is similar to the standard ...
creating a NPO-sub under an existing S-corp2/12/2011
  Q: I am the owner of a small S-Corp that provides youth sports programing and engages in multiple ...
  A: I am assuming that you are referring to establishing a 501(c)(3) organization. However, it would ...
International money transfer thru 501(c)(3) status church2/12/2011
  Q: Is it possible for a local church in the USA to take an offering and give tax deductible receipts to ...
  A: If the donor is specifying that the funds go to the international (Australian) church, the donation ...
501(c)(3) Status and Lease of Real Estate2/12/2011
  Q: Private school with 501(c)(3) status must relocate. Directors have found larger and appropriate ...
  A: You wrote that the country is Hong Kong. I only address issues as to U.S. organizations acting in ...
Piano lessons in church2/12/2011
  Q: I was reading some other questions others had asked about piano lessons in church, and I think my ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
non-profit donations2/11/2011
  Q: If funds are donated to a non-profit, and are given to be used for a specific purpose, can they be ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Out of State Branch2/11/2011
  Q: We are a non-profit organization in California.We have tax exempt status 501c3.We are planning to ...
  A: You would need to register in each state (other than the state of your incorporation) as a foreign ...
Athletic Booster Club in Texas2/11/2011
  Q: Our Athletic Booster Club in Texas has never applied for 501 (c)(3). We just pay taxes on what we ...
  A: You would request the Secretary of the group to let you look at the organizational document. If it ...
Booster Club hotel expenses2/11/2011
  Q: Our gymnastics booster club pays for the hotel expenses of our coaches during meets. Several of our ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Athletic Booster Club in Texas2/11/2011
  Q: Our Athletic Booster Club in Texas has never applied for 501 (c)(3). We just pay taxes on what we ...
  A: First I would need to know whether your group has been organized in Texas as a 501(c)(3) ...
Non-profit fundraising2/11/2011
  Q: I have seen your answers to questions regarding 501c3 fundraising for a specific individual. ...
  A: The same rules do not apply as, under U.S. law an animal is considered not a person, but property. ...
Booster Type (A or B)2/11/2011
  Q: Our booster has been put in place to fundraise for softball and baseball programs. Therefore I ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Booster Type (A or B)2/11/2011
  Q: Our booster has been put in place to fundraise for softball and baseball programs. Therefore I ...
  A: The IRS gives examples of types only for illustrative purposes. The real issue will be determined ...
Ability to reapply after loss of status2/11/2011
  Q: I am an Auxiliary President at a Massachusetts organization which has been a 501(c)3 public charity ...
  A: If you received a letter from the IRS informing the organization that exemption was revoked, your ...
Set-up a Booster Club for a School2/11/2011
  Q: I am a parent whose child attends a public charter in California. I'm working on setting up a parent ...
  A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
company held fundraiser - no donation2/11/2011
  Q: A popular restaurant/bar held a fundraiser for our 501c3 on October 31, 2011. They advertised it as ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
non-profit opening retail store2/10/2011
  Q: Our non-profit is looking to sell product that relates to our exempt purposes. For example, we run a ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
fundraising2/9/2011
  Q: My organization is a 501 (c) (3)non profit organization set up to raise money to defray the cost of ...
  A: If an organization is not an approved 501(c)(3) organization then it may engage in sales activities ...
Can a 501 c 3 support a foreign missionary?2/9/2011
  Q: Are there any restrictions on a 501 c 3 organization sending money to an individual in a foreign ...
  A: See www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and international ...
Real estate donation2/9/2011
  Q: I want to donate my second home to the non profit health promotion center I am creating. I envision ...
  A: I don't see your question, but a donation to a 501(c)(3) organization, even one that you created ...
nonprofit gift cards2/9/2011
  Q: Mr. Mechanic I am a volunteer member with a non-profit emergency rescue crew. We pull an average of ...
  A: The first time a gift is given usually there is no problem. However, as a pattern develops, then ...
founder/pastor2/9/2011
  Q: do a pastor/ founder have the authority to withhold money information from the board members and ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
spliting off ambulance service2/9/2011
  Q: Our volunteer fire dept, a 501(c)(3) in NY is considering separating the ambulance service off as a ...
  A: There is no problem as long as, after the reorganization, both entities are organized and operating ...
non-profit clubs2/9/2011
  Q: My wife is in a non-profit after prom committee. Is their a limit on the amount of money that they ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Disposal of Assets due to Downsizing2/8/2011
  Q: I read your answer to the question about the disposal of assets if the 501(c)(3) is dissolving. I ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501(c)(3) Making a Loan2/8/2011
  Q: I work for a 501(c)(3)foundation that owes a holding company. Normally it invests in the holding ...
  A: I am assuming that the holding company is a for-profit entity and that the 501(c)(3) organization ...
Setting up a Booster Club2/8/2011
  Q: I'm sorry if this question is simple but I am unsure of my starting point. A group of parents wants ...
  A: Yes, the IRS requires you to first determine the type of entity you want and then to establish it ...
Inurement benefitting officers?2/8/2011
  Q: As an university alumni club, organized as a 501(c)(3) established for educational purposes - ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
Requirements for Passing on Complimentary Tickets2/7/2011
  Q: Our educational support-based booster club received several complimentary passes in making travel ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
forms for Umbrella Organization2/7/2011
  Q: As a theatre company under the non-profit umbrella of a local arts agency, what forms do we need to ...
  A: I am assuming that you are referring to what the IRS calls "group exemption" and your organization ...
business in church2/6/2011
  Q: Our church has member who does peoples hair in her home, which is about to be foreclosed on. She and ...
  A: A 501(c)(3) organization may not give free rent to a for-profit business unless the space is given ...
Fundraisers2/5/2011
  Q: I am the treasurer for an equestrian club, that is a 501(c)(3)organization. The club is proposing a ...
  A: You are welcome. The club would need to rent the space to members for a fair market value. ...
Giving Money to an undocumented immigrant2/5/2011
  Q: Some members of our church have suggested that we give money to a needy family, living in our ...
  A: Many Churches and other 501(c)(3) organizations have what they call a Compassion Fund or ...
sponsors deduction2/5/2011
  Q: I am trying to get sponsored to get in internship in LA. I would have to move there so that's where ...
  A: No. As to charitable deductions, see IRS Publication 526 "Charitable Donations" ...
Fundraisers2/5/2011
  Q: I am the treasurer for an equestrian club, that is a 501(c)(3)organization. The club is proposing a ...
  A: 1. "Some members would like to try to sell larger items, primarily saddles, and if they sold, would ...
Fundraising for a Youth Sports Team2/4/2011
  Q: What is the simplest way to set up a youth sports team entity that can accept tax deductible ...
  A: A charitable trust or unincorporated association is usually easier compared to setting up a ...
personally paid clothing2/4/2011
  Q: Belong to a nonprofit organization, they require T-shirt, sweatshirt, vest and/or coat uniform be ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
community benefit percentage2/3/2011
  Q: we are in our first year as a 501c3 and our Board consists of volunteers with no pervious NPO ...
  A: The IRS does not have any particular percentage. However, the IRS wants to see that the ...
Donations Deductible?2/3/2011
  Q: One of my friends was killed in action and we wanted to start a Scholarship Fund for a memorial. We ...
  A: Even though your receipts are not going to be more than $5000 per year, in order to have donations ...
501 c3 Board of Directors (dog rescue)2/3/2011
  Q: CAN THE PRESIDENT AND FOUNDER OF THE BOARD OF A DOG RESCUE ALSO HAVE THE ROLE OF TREASURER IN NYS?
  A: I am assuming that you are referring to a corporation that was incorporated under the New York ...
Loaning money to a 501(c)32/2/2011
  Q: Is it legal for an individual, even a member of the board of directors of a non-profit 501(c)3 to ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Gymnastics booster 501(c)(3)2/1/2011
  Q: I've read your other answers regarding gymnastics and I have some further questions: 1. Could a ...
  A: As for the funds benefitting a particular team or event. it would depend upon how many persons are ...
sponsors2/1/2011
  Q: I belong to a youth travel baseball team that has a 503c. I have a group of parents that are avid ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Sale of non-profit donations2/1/2011
  Q: We are a volunteer fire department and a staffed EMS with pay organization; I am the newly elected ...
  A: I am revising my answer because you replied to my email that "We are are 501(c)(3) organization and ...
Allocation of funds raised by a 501(c)(3)2/1/2011
  Q: If I incorporate my organization under the 501(c)(3) subsection, is it required that 100% of the ...
  A: See www.irs.gov/pub/irs-wd/1041048.pdf on pdf page 4 The IRS will not grant 501(c)(3) organization ...
Should a newly formed organization apply for tax-exempt status immediately?1/31/2011
  Q: I am in the process of starting a chapter for the local alumni of the university I attended (I have ...
  A: An organization that has a substantial social function does not qualify under section 501(c)(3). ...
Should a newly formed organization apply for tax-exempt status immediately?1/31/2011
  Q: I am in the process of starting a chapter for the local alumni of the university I attended (I have ...
  A: I would need to know the subsection of IRC 501(c) under which you are planing to incorporate the ...
Should a newly formed organization apply for tax-exempt status immediately?1/31/2011
  Q: I am in the process of starting a chapter for the local alumni of the university I attended (I have ...
  A: You don't need to apply for the exemption determination if the organization has not yet completed ...
Transerferring program1/31/2011
  Q: I am the director of the only program of 501(c)(3) nonprofit that is supported by a 501(c)(6) ...
  A: The 501(c)(3) organization is controlled by the board of directors and they have the power over that ...
Non profit-Tax exempt organization opens a branch1/31/2011
  Q: We are a non-profit organization.We have also tax exempt status.We are planing open a branch in ...
  A: The federal government has no regulations as to that. As I informed you earlier, this forum is only ...
Can a booster club support two different organizations1/31/2011
  Q: We have a booster club that supports one All-Star cheerleading gym in our city. One of the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Clarification on organizations not required to file form 10231/30/2011
  Q: Mechanic; IRS publication 557 exempts organizations (other than private foundations) normally having ...
  A: "Some entities eligible to receive tax deductible charitable contributions may not be listed in ...
Non Profit Bylaws1/30/2011
  Q: I am in the process of forming a non-profit youth soccer club in Nevada. I have an EIN and now I ...
  A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Clarification on organizations not required to file form 10231/30/2011
  Q: Mechanic; IRS publication 557 exempts organizations (other than private foundations) normally having ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Domain Name Reg Issues1/30/2011
  Q: We're starting up an NPO and our IT guy has, without asking, registered our name under his own ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non profit-Tax exempt organization opens a branch1/29/2011
  Q: We are a non-profit organization.We have also tax exempt status.We are planing open a branch in ...
  A: Sorry. You did write "county" not "country". The IRS has no regulations as to branches in other ...
Non profit-Tax exempt organization opens a branch1/29/2011
  Q: We are a non-profit organization.We have also tax exempt status.We are planing open a branch in ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Check if it is a legitimate organization1/29/2011
  Q: How can I find out if an organization is legitimate? Thier website states they are a 501(c)-4 and ...
  A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
Umbrella/Parent Organization1/29/2011
  Q: We are a community nonprofit project that has been given the authorization to 'piggyback' or use the ...
  A: You can send me the exact wording from the Paypal site, but it may be, as on another site, "5. ...
Non Profits vote by email, or electronic signature1/29/2011
  Q: I am asking this question for a Non Profit Organization with member and directors scattered ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non-profit IRS regs for membership1/28/2011
  Q: Can a non-profit private membership club ie; Veteran's of Foreign Wars, American Legion, Loyal Order ...
  A: You are correct if you are referring to a particular subsection of the IRS code. I would need to ...
fundraiser event - income??1/28/2011
  Q: We are conducting a fundraising benefit concert for medical fund for neighborhood girl with rare ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Nonprofit Law/Change of Name and Focus of 501c31/28/2011
  Q: I read your clear and excellent answer to Keith on 4/28/09, regarding Nonprofit Law/Change of Name ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Do we need a 501?1/28/2011
  Q: I'm known as "The Freak on Wheels" and few months ago I started a Wheelchair Bodybuilding team, we ...
  A: You do not need to establish an exempt organization (501(c)(3) organization) unless you want donors ...
Nonprofit to import crafts?1/28/2011
  Q: I'm wondering if an organization that was dedicated to facilitating trade between indigenous crafts ...
  A: A 501(c)(3) organization would need to be charitable in the definition of the IRS, which means that ...
volunteer profit from sale of merchandise1/28/2011
  Q: There is a volunteer coach under the direction of a Town in NY. He was given the sole contract to ...
  A: It appears to be a conflict of interest. A conflict of interest is present whenever a director has ...
Gymnastics Booster Club1/27/2011
  Q: I have two questions regarding the 501(c)(3) Booster Club I am a member of for my daughters ...
  A: 1. I don't know of any exceptions, either. 2. I do not know of any laws that might protect you. ...
non-profit donations1/27/2011
  Q: Is there anything illegal about "loaning" money to a 501(c) 3 to make it appear that the non-profit ...
  A: Fraud is always illegal when the federal government is involved in a contract with the organization. ...
cash giveaway fundraiser1/27/2011
  Q: Our Shrine Center is wanting to hold a dinner,dance and cash giveaway fundraiser where $75 tickets ...
  A: www.irs.gov/pub/irs-tege/notice_1340.pdf is an IRS Publication regarding raffle withholding ...
Scholarships for Church Members - Fundraising1/27/2011
  Q: Two questions. 1. Can a church set a a scholarship fund and give scholarships to its seniors for ...
  A: You need advance approval from the IRS for your method of giving scholarships if you want assurance ...
Youth ice hockey teams- incorporate as non profit or not1/27/2011
  Q: We have formed 2 teams, 20 kids total (ages 5-10) that plays ice hockey against other local teams at ...
  A: It is not that the coach needs to form a 501(c)(3) organization. He can help, but the majority of ...
Sale of t-shirts at fundraising walk1/27/2011
  Q: we are in our first year as a 501c3 and our Board consists of volunteers with no pervious NPO ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
Transferring the 'ownership' of a NY 501c31/26/2011
  Q: Our NY registered non-profit organization was granted 501c3 status in 2010. My co-founder who ...
  A: No one owns a not-for-profit corporation. The board of directors controls the corporation and, ...
Free registration for board members1/26/2011
  Q: Is it ok for volunteer board members of a non profit youth soccer league in California to be exempt ...
  A: See http://viewer.zoho.com/docs/lcYOt which is a newspaper story describing a situation when the ...
Scholarships for Church Members - Fundraising1/26/2011
  Q: Two questions. 1. Can a church set a a scholarship fund and give scholarships to its seniors for ...
  A: You need advance approval from the IRS for your method of giving scholarships if you want assurance ...
Donations to Incorporated Non-Profit Before Filing 10231/26/2011
  Q: This is similar to a question you answered last week but with a slight variation. Our non-profit ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Reincorporation of nonprofit - New Exemption Application1/25/2011
  Q: In your answer posted on 2/17/2010 to the question "State of Incorporation/Exemption Status" you ...
  A: No. Sorry, Ray, I have not seen any change in the IRS' published position. You can use a search ...
Seed Money and Restricted Funds1/25/2011
  Q: If a 501c4 holds a fundraiser and advertises proceeds to benefit the 501c3 arm and local service ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
sale non profit property without court approval1/25/2011
  Q: we have a non profit property in new york state, but it has been sold without the court approval ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
sale non profit property without court approval1/25/2011
  Q: we have a non profit property in new york state, but it has been sold without the court approval ...
  A: Is it a church property from a church that was incorporated under Article X of the Religious ...
scholorship info1/24/2011
  Q: We are a 501 c 3 arts organization wanting to establish a scholarship program. In general, it will ...
  A: 1. Providing scholarships to members appears to be an issue for a 501(c)(3) organization. See: ...
Potential conflicts- splitting 1 nonprofit into 2 similar.1/24/2011
  Q: I am involved with a nonprofit that provides various youth programs. One of the programs has grown ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Donation Fund for Relative1/24/2011
  Q: My wife set up a donation fund at our bank for her sisters family who's husband has a severe health ...
  A: You are correct. In order to have donations deductible by the donors according to Internal Revenue ...
Work for Benefits - Volunteer?1/24/2011
  Q: Can Volunteers at a Township owned golf course volunteer services for golf privileges? The ...
  A: See http://viewer.zoho.com/docs/lcYOt which is a newspaper story describing a situation when the ...
use of non profit corp. funds1/24/2011
  Q: I'm thinking of buying shares in a non-profit summer grazing association for cattle. It's a simple ...
  A: have in my profile that this free forum is only for general questions relating to IRS federal ...
Fiduciary obligation of federation board member1/24/2011
  Q: I am on the board of a society that is one of the founders of a federation of similar societies. ...
  A: See Sec. 108.60. Director conflict of interest. http://pages.citebite.com/o3t6x3y8jpwj Also, " ...
Day Care1/23/2011
  Q: My friend invited me to open a Day Care at church that she goes, she wants to introduce me to the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Fiduciary obligation of federation board member1/23/2011
  Q: I am on the board of a society that is one of the founders of a federation of similar societies. ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
non-profit owning half the rights to a movie1/23/2011
  Q: Can a 501c3 non-profit own half the rights to a documentary film (the showing of which furthers the ...
  A: Revenue Ruling 98-15 www.unclefed.com/ForTaxProfs/irs-drop/1998/rr-98-15.pdf on the bottom of pdf ...
Non profit thrift store1/23/2011
  Q: I am looking to open a children's non-profit thrift store for our organization. My concern is how to ...
  A: A bargain sale is what you propose to the donors. A bargain sale of property to a qualified ...
Starting a For-Profit1/22/2011
  Q: Is it allowable for the Executive Director of a Non-profit to start a for profit company that ...
  A: A conflict of interest is present whenever a director has a material personal interest in a ...
Non Profit 501C4 Open Meetings1/21/2011
  Q: I read your response to a similar question, but felt I need clarification on my own situation. In ...
  A: As for your state law on Open Records and Open Meetings See ...
Does a non-profit school need a non-profit parent's association1/21/2011
  Q: Our kids attend a school of dance that is a non-profit (there are two arms, a school and a dance ...
  A: Either way, but note that parents donations may not be deductible as donations. See ...
Non-profit 1099 Requirements1/21/2011
  Q: Our animal welfare organization has paid vehicle expenses either directly to or indirectly on behalf ...
  A: I don't know the content of the alleged oral contract. Oral contracts may be enforceable. ...
Personal Fundraisers1/20/2011
  Q: I am thinking about having some items printed up that would sell for a gift of $3.00 each to help ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Booster Club1/20/2011
  Q: Our track and field booster club has existed for 6 years. Our school athletic association dissolved ...
  A: The former operation was under the school. Therefore, I am assuming that the school was a public ...
Booster Club1/20/2011
  Q: Our track and field booster club has existed for 6 years. Our school athletic association dissolved ...
  A: It is not clear from what you wrote what entity was the one that had the EIN (Employer ...
Donations prior to 501(c)(3) status granted...1/20/2011
  Q: The background: In late 2009 we announced that we would be forming a foundation. Several people ...
  A: The 501(c)(3) organization did not receive the funds from those donors and, therefore, absent some ...
Donations prior to 501(c)(3) status granted...1/20/2011
  Q: The background: In late 2009 we announced that we would be forming a foundation. Several people ...
  A: It appears that the checks were initially deposited into a checking account of some other entity, ...
Unincorporated organization partnership1/20/2011
  Q: We are an established 501(c)3. We have been asked by an unincorporated non-profit association to ...
  A: Any bank accounts would be considered by the IRS to be simply an account of your 501(c)(3) ...
Failure of board to investigate report of theft1/20/2011
  Q: I'm Executive Director at a small chapter of a well-known charitable nonprofit that does not have ...
  A: You can report it to the police or district attorney who have jurisdiction over criminals, but as to ...
non profit - IRS filing1/19/2011
  Q: A non profit organization established in India would like to now set up in the state of MA, USA. the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Single member LLC and IRC 514 rule1/19/2011
  Q: we are an organization described in IRS 509 (a)(1)and 170(b)(1)(A)(ii).We are planning to purchase a ...
  A: Yes. As the IRS has written: "The disregarded entity receives the benefit of its owner’s ...
Advertising for New members1/19/2011
  Q: We are a social bath and tennis club and are looking at recruiting in our community for new ...
  A: A 501(c)(3) organization like a university may certainly advertise to try to get new members. Note ...
art donations to Foundation1/19/2011
  Q: I am an artist who would like to set up a project for a 501(c)(3) Foundation. Artists would donate ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Con somebody that is not a non-profit orginazation accept donations?1/18/2011
  Q: There is a local band that is trying to raise money for studio time. They have been told that ...
  A: The acceptance of gifts is allowed and not taxable. The Internal Revenue Code at section 102(a) ...
Incorporating in another state1/18/2011
  Q: I currently reside in NY and plan to relocate to the Washington, DC area next year. I recently got ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
nonprofit lending to another1/18/2011
  Q: I am the director of a public charity and a private foundation. Both of these organizations are ...
  A: Internal Revenue Code section 501(c)(3) which is available at: http://pages.citebite.com/w8p5e1ayxjv ...
divesting funds from a non-profit1/18/2011
  Q: I am the last board member of a dead 501c(3). I cannot maintain non-profit status with the State of ...
  A: In order to have obtained IRS exemption determination, a 501(c)(3) organization would have had to ...
booster clubs1/18/2011
  Q: Does a booster club for a gymnastics school need to be registered or file financial documents with ...
  A: It depends whether the organization wants the IRS to treat them as exempt or whether they want to be ...
Control of Booster Club by Private School1/17/2011
  Q: 1. What are the implications to a private school (501(c)(3)), where the prinicipal vetoes certain ...
  A: 1. It appears that the principal has no authority over the decisions of the booster club if the ...
advertising in a 501 C 3 newsletter1/17/2011
  Q: We are a 501 C 3 non profit charity, we publish a monthly newsletter that goes to members only. One ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
Reporting Rules for Giving Grants to Individuals1/6/2011
  Q: Our nonprofit would like to start making grants to families/parents of minors to cover the cost of ...
  A: Revenue Ruling 56-304 has --- Start of Excerpt --- Organizations privately established and funded ...
PTA donating to a non 501(c)(3)1/6/2011
  Q: Can a PTA in NY donate to a charity? In lieu of flowers, a family who recently lost their young ...
  A: The IRS has written in an internal memo in 2005 on page 2, "A section 501(c)(3) organization may ...
Large Gift to Relative of Insider1/6/2011
  Q: I am a treasurer for a 501(c)(3) public charity whose mission is to provide support for ...
  A: The distribution, as it is to an employee insider family member would come under the IRS ...
Converting a Private Foundation to Public Charity1/6/2011
  Q: Can a private non profit foundation with a specific mission that is tax exempt convert to a 501 (c) ...
  A: First let me know what type of entity the present foundation is, i.e. trust, unincorporated ...
Non Profit donating to For Porfit1/5/2011
  Q: Good afternoon, May a nonprofit organization accept a donor restricted contribution if the ...
  A: A 501(c)(3) organization may accept such a contribution, but then it is considered a pass-through ...
Mandatory Fundraising Requirement by a 501(c)(3) Christian School1/5/2011
  Q: Is a mandatory fundraising requirement by a tax-exempt christian school legal within the framework ...
  A: A 501(c)(3) organization may require families to pay an additional $400 in fees, as long as the ...
Class Reunion1/4/2011
  Q: I read your response to a previous question regarding class reunions and obtaining a EIN. You said a ...
  A: I don't believe that I wrote that obtain 501(c)(3) organization status was unnecessary. If I did, ...
nonprofit selling gifted assets1/4/2011
  Q: Is it possible to set up a nonprofit organization that receives gifted items (e.g., a sofa) and then ...
  A: 1. First you would need to establish a 501(c)(3) organization as then donations would be deductible. ...
Gymnastics Booster Club1/4/2011
  Q: Harvey, I am the treasurer of a gymnastics booster club which ia a 501(c)(3). If a member leaves ...
  A: It appears that you may be conspiring with the sporting event company to evade taxes. When people ...
Gymnastics Booster Club1/4/2011
  Q: Harvey, I am the treasurer of a gymnastics booster club which ia a 501(c)(3). If a member leaves ...
  A: First we need to see whether your booster organization is operating properly according to IRS ...
Tithes, donations, rent1/1/2011
  Q: As an organization filing under 501c3 as a church/school, can the organization bank all the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
local senior citizen agency-discrimination12/30/2010
  Q: The local senior citizen (non-profit) has a building where various activities, as well as senior ...
  A: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have ...
fundraising and donations12/30/2010
  Q: Situation, Holding a tournament to fundraiser for a family of a former club member who is having ...
  A: The IRS does not grant exemption to an organization nor does it allow an organization to maintain ...
re-incorporating 501c6 in another state12/30/2010
  Q: What is necessary to transfer a 501c6 organization from California to Florida?
  A: The IRS Rev. Rul. 67-390, 1967-2 C.B. 179 stated that an exempt organization incorporated under the ...
Can a non-profit 501(c)(3) purchase or license software copyright from a for-profit company that is in line of the non-profit mission?12/30/2010
  Q: I represent a non-profit 501(c)(3) organized in the state of Georgia for the advancement of ...
  A: 501(c)(3) organizations may obtained distribution rights or copyrights from for-profit companies, ...
Donation of Funds prior to 501(c)(3) status12/30/2010
  Q: We have just established a new booster club organization and we are seeking our 501(c) (3) status ...
  A: As to charitable deductions, see IRS Publication 526 "Charitable Donations" ...
EIN needed for a small band parent's group in Alaska12/29/2010
  Q: BACKGROUND: I am the treasurer of a small parent's group in Alaska. Our mission is the support the ...
  A: Your organization already has a checking account and banks are required to put either a Social ...
expense reimbursement independant contractor12/29/2010
  Q: I am an advisor for a 501C3. Each year we have a premier fundraising event. As part of attending the ...
  A: The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses ...
501c3 or 501c1012/29/2010
  Q: I am president of a Washington State Non profit Corperation. We currently fly under the radar with ...
  A: Section 501(c)(10) is available at http://pages.citebite.com/p3h2b2q8plbu and is: ---Start of ...
Unreimburrsed Expenses12/28/2010
  Q: I am the president of a 501(c)(7) car club. One of my goals is to increase membership by having ...
  A: No. The IRS regulations as to unreimbursed expenses are only related to expenses of organizations ...
compensation to a director12/28/2010
  Q: We have a thrift store that supports our 501c3 mission. It is not an unrelated business. One of our ...
  A: There are many factors that the IRS uses to conclude whether someone is an employee or an ...
Background checks12/28/2010
  Q: Many churches have benevolence programs to provide financial assistance to those in need. Does the ...
  A: See www.irs.gov/pub/irs-pdf/p3833.pdf starting on page 5 (which is pdf page 7 of that pdf file) as ...
church wants to provide gift to organist12/27/2010
  Q: Our organist is not an employee of the church and plays without payment. We want to show our ...
  A: He would be either an employee or independent contractor. There are many factors that the IRS uses ...
Donation/income requirements12/26/2010
  Q: I run a small public 501(c)(3) non-profit with income of less than $25,000, so we file the ...
  A: A 501(c)(3) organization that is not a private foundation may accumulate funds for years, as long as ...
Nonprofit tax return BEFORE 501c3 status?12/26/2010
  Q: After fling the Articles of Incorporation for a nonprofit with my state (Indiana), what federal tax ...
  A: The IRS may take months to issue the exemption determination letter, but as long as you file your ...
Declaring 501c3 without Application12/26/2010
  Q: Is a 501c3 in violation if a named "advisor" will receive a salary as a part of distributions? Is ...
  A: Please send me the exacting wording in their advertisement and I will then comment as to whether ...
Donation/income requirements12/26/2010
  Q: I run a small public 501(c)(3) non-profit with income of less than $25,000, so we file the ...
  A: I would need to know whether it is a private foundation or a public charity. The designation of ...
Declaring 501c3 without Application12/25/2010
  Q: Is a 501c3 in violation if a named "advisor" will receive a salary as a part of distributions? Is ...
  A: It appears that you are stating that the organization be established as a corporation, charitable ...
Unreasonable Salary Non Profit12/25/2010
  Q: Is a 501c3 in violation if a named "advisor" will receive a salary as a part of distributions? Is ...
  A: Internal Revenue Code section 501(c)(3) which is at: http://pages.citebite.com/w8p5e1ayxjv has, in ...
Can Non Profit issue refunds12/24/2010
  Q: I belong to a gymnastic booster club and it was brought to our attention any money we put into the ...
  A: You can request your money back but the real issue is whether the organization is required to give ...
Short Term Mission Tax Liabilities12/22/2010
  Q: My daughter (not my dependant) is performing a short term mission (Sept 2010 - May 2011) in Mexico ...
  A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. "Gross ...
501(c)(3) Compensation12/21/2010
  Q: If a 501(c)(3) has volunteers that they compensate with room and board, is that room and board ...
  A: As the IRS writes at: www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf on page 72-73 (takes a while ...
compensation12/20/2010
  Q: We are a two yo non-profit and pay wages only to two part-time staff. I wanted to provide a ...
  A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. "Gross ...
Non-Profit Thrift Store12/20/2010
  Q: My Mother died recently of Alzhimers and in her will she wanted to donate a small sizeable amount to ...
  A: The Thrift Store gave you an improper answer. If a nonprofit has received IRS exemption ...
non-profit investing in a for-profit12/20/2010
  Q: Can a non-profit give (public) funds that it has raised to a privately held (relatively cash poor) ...
  A: As long as the public charity is not giving more than the investment is worth then it may make such ...
non-profit investing in a for-profit12/19/2010
  Q: Can a non-profit give (public) funds that it has raised to a privately held (relatively cash poor) ...
  A: Are you referring to a public charity or to a private foundation. If it is a 501(c)(3) ...
501 (c) regulations12/19/2010
  Q: Hoping you can help. I am interested in the current governance practices of an international school ...
  A: Some organizations are newer and would not be on that list until after they receive exemption ...
501 (c) regulations12/19/2010
  Q: Hoping you can help. I am interested in the current governance practices of an international school ...
  A: 1. It may not be registered in any state. See www.irs.gov/pub/irs-tege/eotopick92.pdf starting on ...
Return of Lifetime Membership Dues12/18/2010
  Q: Our non-profit organization allows members to pay a one-time life membership fee. The only material ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Board of Directors - Non Profit12/17/2010
  Q: Can a citizen of New Zealand serve on a US Based non-profit ANSWER: Yes, generally. But your issue ...
  A: http://tinyurl.com/2f5cmzt is the Nevada Nonprofit Corporation Code and specifically, as to ...
Board of Directors - Non Profit12/17/2010
  Q: Can a citizen of New Zealand serve on a US Based non-profit
  A: Yes, generally. But your issue is controlled by state law and states may differ somewhat with how ...
band booster12/17/2010
  Q: Follow up. School is a public school. Band boosters is an incorporated 501(c)(3) organization ...
  A: No. The would not be deductibility. My summary of IRS regulations relating to 501(c)(3) booster ...
IRS regs on raffle tickets in the mail12/17/2010
  Q: I understand it is illegal to send raffle tickets in the mail and I have tried to find the specific ...
  A: There are no IRS regulations as to the mail. There are federal gaming regulations, though. I have in ...
band booster12/17/2010
  Q: Follow up. School is a public school. Band boosters is an incorporated 501(c)(3) organization ...
  A: Right. If the band or school does not require students to have their family be members of the ...
How to handle free computer rental12/17/2010
  Q: I have a multi-part question. I am not sure if you can answer all of the questions. I am a 501(c)3 ...
  A: First I would like to point out that it is not appropriate or accurate for you to write "I am a ...
band booster12/17/2010
  Q: Follow up. School is a public school. Band boosters is an incorporated 501(c)(3) organization ...
  A: A diploma is only of insubstantial value and, therefore, would not trigger any private benefit ...
band booster12/17/2010
  Q: Follow up. School is a public school. Band boosters is an incorporated 501(c)(3) organization ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
band booster organ12/17/2010
  Q: The school is considering withholding graduation diploma if band booster dues not paid. Does this ...
  A: Is the school a public school? Is the band booster organzation an entity separate from the school? ...
Self-Dealing?12/17/2010
  Q: Two years ago, I was a new addition to a Board of Directors of a 501(c)(3). My family's company ...
  A: Section 5233 of the California Corporations Code is ...
Non for profit changes in members, etc12/16/2010
  Q: We have a non for profit and two of the three board members are no longer with the organization or ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
for profit entity directing funds to a non profit12/16/2010
  Q: I am starting a "for profit" business that will direct funds from corporations to non-profit ...
  A: In Davis v. United States, 495 U.S. 472 (1990), the Supreme Court wrote: ---Start of Excerpt-- The ...
NPOs belonging to For Profit Corporations12/16/2010
  Q: What law(s) deal with (or preclude or govern) NPOs participating (or not participating) in the ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Scholarship Section of By-Laws12/15/2010
  Q: I am in process of filing for 501c3 status for our school Boosters organization. I am updating ...
  A: The bylaws normally are not the place to put in details as to the particular programs such as ...
noprofit non 501c3 tax deductible12/15/2010
  Q: Can donation from corporation or people can be tax deductible if nonprofit organization in not 501c3 ...
  A: It appears that your question was truncated at the end. However, I think I know what you are ...
School booster fundraising12/14/2010
  Q: I am the president of newly formed school choir parent booster club. I was recently told by the ...
  A: My summary of IRS regulations relating to 501(c)(3) booster organizations is at: ...
Requiring 501(c)(3) status of grant applicants12/14/2010
  Q: Can you explain why some grant-making foundations require that applicants have 501(c)(3) status and ...
  A: Foundations can use whatever qualification procedures that they want to use and it is often easier ...
501c3 donations12/14/2010
  Q: recently I helped out with a dinner for a non profit org.. I made dozens and dozens of calls for ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Benefit in exchange for volunteer work12/14/2010
  Q: Our 501(c)(3) organization has several volunteers who are given some benefits, such as free meals ...
  A: "True volunteer firefighters do not receive, or have an expectation of receiving, compensation." ...
501c312/13/2010
  Q: Can a 501c3 lineage group give honorariums to guest speakers or to groups who provide entertainment ...
  A: Payments to speakers or providers of goods or services are treated like salaries or other payments ...
Horse rescue making a profit?12/13/2010
  Q: Can a registered horse rescue (501(c)(3) in the state of PA also take in boarders? It would seem ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
Can fundraised money for a group go to an individual12/12/2010
  Q: If our sports team or school does a fundraiser, is it legal to apply the money raised by each person ...
  A: No. Not for a 501(c)(3) organization. My summary of IRS regulations relating to 501(c)(3) booster ...
Interest Free Loan12/12/2010
  Q: Can a 501(c)3 entity (church) make an interest free loan to a new paid full time staff member ...
  A: See www.irs.gov/pub/irs-tege/eotopicc90.pdf On pdf page 5 we see, "Other case examples of inurement ...
Donor Requests Redirection of Funds12/11/2010
  Q: Mr. and Mrs. X donated a substantial sum to the church's building fund in 2003 and took a tax ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Transfer of a non-profit--legal fees12/11/2010
  Q: I am currently on a Board of Directors of an organization that has decided to award leadership, and ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
RE:Non-profit organization selling merchandise12/11/2010
  Q: Is it possible (legal) to purchase the T-shirts in a non-profit organization and then give away a ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
Donation by one non profit to another non profit12/11/2010
  Q: Are there $ limitations for a donation from one non profit to another non profit? Thanks, Les ...
  A: The IRS has no objection to that as long as they are both public charities. A quick summary of the ...
Donation by one non profit to another non profit12/11/2010
  Q: Are there $ limitations for a donation from one non profit to another non profit? Thanks, Les
  A: There are no particular dollar limitiations but there are regulations if the funds are coming from a ...
alumni associations12/10/2010
  Q: I am involved with a 501(c)(3) public charity that supports a school outside the USA. We are in the ...
  A: You are correct that the normal alumni social functions can not be a substantial part of your ...
501(c)(3) booster club fundraising12/10/2010
  Q: I have reviewed your prior answers and understand that you see 501(c)(3) private benefit limitation ...
  A: 1. Yes, but it may not provide to students uniforms unless they are used exclusively in the ...
Youth Org. with 501(c)(3) - Fundraising12/10/2010
  Q: I want to make sure that I am correct in saying this when I present it to the general board. The ...
  A: You are correct. My summary of IRS regulations relating to 501(c)(3) booster organizations is at: ...
booster clubs that aren't 501c3s12/9/2010
  Q: I recently became treasurer of a high school sport booster club and it is not a registered 501c3 ...
  A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Staffing non-profit company (that I'm on the board of) with employees from my own for-profit company12/9/2010
  Q: I own and operate a staffing company in the Northern Virginia area. I also sit on the board of new, ...
  A: It appears that your question was cut-off at the end. I would need to know the subsection of IRC ...
Board members and others receiving compensation12/9/2010
  Q: What is the federal law concerning board members of a non-profit receiving compensation in the form ...
  A: Stipends are the same as salaries, under tax law. The IRS does not allow 501(c)(3) organizations ...
Pass through contributions12/8/2010
  Q: I work for a charter school with 501C3 status. Our school recently participated in a fundraiser to ...
  A: You are not correct. The rule is that donations to a 501(c)(3) organization are tax deductible to ...
board compensation12/8/2010
  Q: We are a small not for profit sports booster club only 22 members. Our board consists of President, ...
  A: No. The IRS does not compare your salaries to those who are working for other organizations without ...
board compensation12/8/2010
  Q: We are a small not for profit sports booster club only 22 members. Our board consists of President, ...
  A: The IRS does not allow 501(c)(3) organizations to give someone more compensation than is ...
Non-profit organization selling merchandise12/8/2010
  Q: I have a non-profit 501c3 organization. I want to sell T-shirts. I'm assuming that I buy the ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
bank balance limits12/8/2010
  Q: Is there a limit on how much can be held in a bank account at year end for a non profit in ...
  A: Unless the organization is a private foundation (which is highly doubtful and you could see on your ...
Nonprofit tax law12/7/2010
  Q: My Tenant in a nonprofit company that owes me some back rent money for 2010. Can I claim this rent ...
  A: No. ---Start of Excerpt-- A deduction for contributions and gifts to or for the use of ...
Disbanding my non-profit12/7/2010
  Q: My 501(c)(3) non-profit has been inactive for over 20 years. It was incorporated in Pennsylvania. ...
  A: In order to have obtained IRS exemption determination, a 501(c)(3) organization would have had to ...
Hiring a brother in law to do maintenance work12/7/2010
  Q: Our nonprofit organization does property management and we hire independent contractors to do ...
  A: A conflict of interest is present whenever a corporate insider has a material personal interest in ...
Withholding Tax for non resident alien12/7/2010
  Q: Our 501c3 non for profit in the US would like to compensate one our volunteer for his 6 months work ...
  A: "[T]here is no expectation of payment by a volunteer." www.dir.ca.gov/dlse/opinions/1988-10-27.pdf ...
high school nonprofit booster clubs12/7/2010
  Q: We have a booster club that is operating under the nonprofit status. They want to charge members ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501(c)(3) and political campaign12/6/2010
  Q: Is it allowable for a 501(c)(3) organization to support a political candidate? Specifically: If the ...
  A: No, that is not a violation. See http://bit.ly/1cI2DC for regulations for all types of nonprofit ...
Inurement/Excess Benefit12/6/2010
  Q: Our 501c3 was facing foreclosure on a bank loan. The note was purchased from the bank, at a ...
  A: The LLC simply took the position of the bank by purchasing the note and the 501(c)(3) organization ...
Non Profit Donations12/6/2010
  Q: Can a US National or entity donate to foreign Non Profit Organizations like Indian NPOs? If so, do ...
  A: A U.S. taxpayer may donate to a foreign nonprofit organization in India, but there would not be a ...
Inurement/Excess Benefit12/5/2010
  Q: Our 501c3 was facing foreclosure on a bank loan. The note was purchased from the bank, at a ...
  A: You are welcome. The fact that the note was purchased at a discount is not an issue as to the ...
Inurement/Excess Benefit12/5/2010
  Q: Our 501c3 was facing foreclosure on a bank loan. The note was purchased from the bank, at a ...
  A: As the IRS explains "In an excess benefit transaction, the general rule for the valuation of ...
are donations tax deductable to non 501 c3 church12/5/2010
  Q: Please advise are donations to a church that has a Federal ein number and in is a non for profit ...
  A: Yes, as long as the organization is operating according to IRS regulations for 501(c)(3) ...
Fundraisers for Non Profit Organizations12/3/2010
  Q: What are the rules regarding a bakery donating a percentage of their profit to a non-profit ...
  A: The IRS does not give exemption to organizations that conduct a business and donate some of the ...
501(c)(3). or 501(c)(4) Not Applied For11/26/2010
  Q: I am a member of a local sports officiating association that provides 1099 contracting services to ...
  A: There were some characters in your question that appear to be erroneous computer code like ...
Mission Statement Changes11/24/2010
  Q: I currently serve on the Board of Directors for a 501(c)(3) organization. Their current mission is ...
  A: The mission statement is not an important factor in the IRS' determination whether the organization ...
Board of Directors11/24/2010
  Q: Mr. Mechanic, I co-founded a 501c3 organization this year. We incorporated in Wisconsin and per ...
  A: The Board is determined by processes under state law and, therefore, the names on the IRS ...
501(c)(3) and thrift shop11/23/2010
  Q: We are a 501(c)(3) organization that is planning to open a thriftshop to raise funds for our senior ...
  A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
501(c)311/23/2010
  Q: Can a 501(c)3 put aside funds at the end of the year into a savings account for next year's ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Allocation of Time for Nonprofit's Employees11/23/2010
  Q: We are 501(c)3 a non profit organization. Do non profits have to have time sheets? Our employees are ...
  A: You appear to be an organzation that is expecting for the years 2010 Gross receipts ≥ ...
501C3 and International Giving11/22/2010
  Q: a UK couple is in the process of building an orphanage in India. They are operating in India and ...
  A: Yes. See www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and ...
Board of Directors11/21/2010
  Q: If an attorney is serving on a board of directors can the nonprofit refer paying clients to him or ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Liability Insurance11/21/2010
  Q: Do you know of any law that requires non profits to have additional liability insurance that meet in ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Deductible expenses11/19/2010
  Q: I am enrolled in a poetry therapy class to enhance my ability to provide services to children in my ...
  A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf at page 5 under the ...
Non-Profit Band Group - Stipends to Band Director11/19/2010
  Q: Does a non-profit (501(c)3) High School Band support group need to issue 1099-Misc to a Band ...
  A: The word "stipends" generally refers to what the IRS calls "compensation", unless your organization ...
What qualifies for tax exemption?11/19/2010
  Q: My daughter is a cheerleader at a local competitive cheer gym. This year the officers & board has ...
  A: Individual accounts are not a gray area. My summary of IRS regulations relating to 501(c)(3) booster ...
501c3 question11/19/2010
  Q: I am begining the process of registering our girls softball organization for 501c3 status to help us ...
  A: No. As to charitable deductions, see IRS Publication 526 "Charitable Donations" ...
Personal Tax Deductions11/18/2010
  Q: I am a board member for a non-profit organization (Tennessee Self-Storage Association) and have to ...
  A: I would need to know the subsection of IRC 501(c) under which the organization received exemption ...
Can members live on the property of a NPO?11/18/2010
  Q: If bylaws establish exclusive property rights to a NPO's members, can members live upon the property ...
  A: The State may have one definition of "nonprofit" and I could reserach that for you, but, as for the ...
Rental Property Owned by Church11/18/2010
  Q: My church is a 501C3 non profit corporation. We have the opportunity to purchase property adjoining ...
  A: If your church has as primary activities religious activities and maintains those substantial ...
Can members live on the property of a NPO?11/18/2010
  Q: If bylaws establish exclusive property rights to a NPO's members, can members live upon the property ...
  A: Monks and nuns live on the property of a 501(c)(3) organization and members of a group that serves ...
Submitting Amended ByLaws to the IRS11/17/2010
  Q: we need to amend our bylaws to change it to state that I am a paid employee as the Executive ...
  A: Exempt organizations' determination letters state that if its mode of operation changes it should ...
Church Auxiliary Dues11/17/2010
  Q: My question is in two parts. 1. Auxiliaries collect dues at my church. They would like to pen ...
  A: 1. If the church board authorizes it then they can set up back accounts with their own EIN number ...
Non profit split off11/16/2010
  Q: I direct an animal welfare program as part of a 501c3. It is our umbrella organization, but we ...
  A: I suggest that we discussing you forming a new organization, but issue would depend upon how long ...
Restricted Donation For Building Fund11/16/2010
  Q: We contributed $3,700.00 to the building fund of our former church. We have heard and did verify ...
  A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
Can a garden club own an asset11/16/2010
  Q: A few families want to start a club to garden and own a truck in common. A 501c7 "recreational and ...
  A: You are referring to a 501(c)(7) recreational or social organization about which the IRS writes at ...
Can a NPO own a for profit company11/15/2010
  Q: Can a non profit organization own a for profit company that in turn manages it?
  A: I would need to know the subsection of IRC 501(c) under which the nonprofit organization was ...
insurance vs nonprofit incorporation11/15/2010
  Q: I'm setting up a rugby club for high school students, with the possibility of expanding to youth and ...
  A: Please obtain the full insurance policy and send me a copy of it and we can look specifically as to ...
Amending Bylaws/Board11/15/2010
  Q: I started my non-profit a few years ago, with just myself as the board of directors in an unpaid ...
  A: You may change the number of members of the Board by a resolution. You do not need to send that ...
Ownership11/15/2010
  Q: A year ago last Oct. 2009 I filed for non profit status. I used my personal money to purchase the ...
  A: If you gave items to the corporation you do not have any claim of ownership on them. However, it ...
Tax implications for charitable aid beneficiaries?11/14/2010
  Q: And if a public benefit nonprofit follows procedures and policies (for selection panels, ...
  A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. "Gross ...
Nonprofit from a sole proprietorship?11/14/2010
  Q: A friend has operated a sole proprietorship for over a year and a half, and openly claims to people ...
  A: The term "working on filing paperwork for non-profit status" does not mean that he has not started ...
Individual Fundraising Accounts11/13/2010
  Q: I am currently a member of a Booster club supporting a Kentucky school athletic program. As far as I ...
  A: From what you wrote to me, your organzation would not be considered a 501(c)(3) organization by the ...
Amending Bylaws/Board11/13/2010
  Q: I started my non-profit a few years ago, with just myself as the board of directors in an unpaid ...
  A: I don't know whether there is anything in your articles of incorporation or bylaws specifying the ...
Individual Fundraising Accounts11/12/2010
  Q: I am currently a member of a Booster club supporting a Kentucky school athletic program. As far as I ...
  A: Does your organization have articles of incorporation or articles of organzation? If so, do they ...
Purchasing Group11/11/2010
  Q: I have a client who has form a corporation pursuant to the provisions of the NJ Non-Profit ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
UBIT - Unrelated business11/11/2010
  Q: I'm working on a return where the 501c3 has a license with the state to go into homes and provide ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Band Booster Student Accounts/Trip11/11/2010
  Q: We are a 501(c)(3) band booster organization, and are planning a voluntary trip for the students ...
  A: Is that voluntary trip primarily to further the student's music education? Is it primarily for the ...
Using 501 c3 status of another organization11/11/2010
  Q: I represent a small not for profit sports club(primarily funded by members dues). We barely meet our ...
  A: It appears that your club has not received a determination letter from the IRS statin that your ...
Response11/11/2010
  Q: Mr. Mechanic, thanks for the quick response. Sorry, but I just realized that we are classified as a ...
  A: I would be willing to work on your matter, but. as you are asking about a private foundation, that ...
employment tax to minister for mission society11/11/2010
  Q: How to treat missionary (odained)'s employment tax who work for mission society (Nonprofit) which ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Non for profit cheer team finances11/10/2010
  Q: We are on a non for profit cheer team. We pay a hefty registration fee and do alot of fundraising. ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501 c3 as part owner of for-profit LLC11/10/2010
  Q: Mr. Mechanic, Can a 501 c3 entity partially own a for profit LLC, as long as the operating ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
501 c 3 status for MC clubs11/10/2010
  Q: Are there any MC clubs who have their 501 c 3 status opposed to a 501 c 7? and what are their names? ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Best avenue to set up swim conference11/9/2010
  Q: I am the president of a summer swim conference comprised of more than 20 local teams. When the ...
  A: You are welcome. I recommend 501(c)(3) organization status, which may be obtained even by an ...
Best avenue to set up swim conference11/9/2010
  Q: I am the president of a summer swim conference comprised of more than 20 local teams. When the ...
  A: I am assuming that almost all of your swimmers are below the age of 19. Any entity that acquires ...
Conflicts between nonprofit and supporting organization11/9/2010
  Q: We are in the final stages of forming our athletic booster club, a 501(c)(3) organization. Our ...
  A: It appear that you are asking about Trademark infringment issues again. That depends upon many ...
Conflicts between nonprofit and supporting organization11/8/2010
  Q: We are in the final stages of forming our athletic booster club, a 501(c)(3) organization. Our ...
  A: 1. Absent a contract with the for-profit gym, you can have the address at a board members house. I ...
Donation of Intellectual property11/8/2010
  Q: If an artist donated their music to a non-profit organization, and that organization sells the music ...
  A: See page 5 right column of IRS Publication 561 "Determining the Value of Donated Property" ...
mileage reimbursements11/8/2010
  Q: our paid church secretary drives about 150 miles RT to buy equipment and supplies for our church. ...
  A: As to your particular question about the paid church secretary, some states, like California require ...
state tax exemption for a 501c311/7/2010
  Q: We are a 501c3 incorportated in state of VA. We frequently make purchases for our org in the state ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
fair market value for a unique outdoor annual event11/7/2010
  Q: Mechanic, Our 501c3 has an annual Taste of ….fundraiser outdoors at a city-owned park and all the ...
  A: Your computation was based upon your costs, but FMV is based upon the retail value of the meal and ...
Booster Club11/6/2010
  Q: The President and VP of a recently formed sports booster club claims she "owns the name of the club" ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Legal structure required for chapters under 501c611/4/2010
  Q: We have a 501c6 for our .org and have over 100 'groups' in the USA using our name and having a soft ...
  A: We would need to discuss the control issues, but, in any case, we would draft agreements to be ...
non-profit11/3/2010
  Q: Section 13: Conduct of Business. At meetings of the Board of Directors, matters pertaining to SPS’s ...
  A: I don't see anything in your bylaws specifically as to the agenda. Therefore, at the meeting the ...
non-profit contirbution to fund11/3/2010
  Q: I am a board member of a non-profit (501(c)(3)) organization for a local Little League. A member of ...
  A: First, I will advise you that your organization would want to inform the donors that the donations ...
Non- Profit protocol11/3/2010
  Q: When a non-profit board wants to vote off board members, one who happens to be the president. The ...
  A: If nothing is specified in the organizations articles of incorporation and bylaws, then it is up to ...
Non- Profit protocol11/3/2010
  Q: When a non-profit board wants to vote off board members, one who happens to be the president. The ...
  A: I would need to review your bylaws to see what is specified as to "special meetings" and "agendas", ...
Non-Profit Agency Product Assembly and Sale11/3/2010
  Q: May a non-profit agency assemble and sell products? I have an idea for scientific and educational ...
  A: I have in my profile that this free forum is only for general questions relating to IRS federal ...
Fundraising for private school activities11/2/2010
  Q: This question is related to fundraising for extra activities of a small private school such as ...
  A: Reasonable compensation is allowed to be given to persons raising funds (sales) for a 501(c)(3) ...
board issues11/2/2010