Nonprofit Law - Tax Planning: U.S. - Real Estate

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About Harvey Mechanic
(Top Expert on this page)

Expertise
US Federal tax issues of nonprofit 501(c)(3) public charities only. Establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. To search my previous answers you can do a Google search:
site:allexperts.com/q/nonprofit
[with your other search terms appended].

Experience
I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.

Education/Credentials
B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude

You are here: Experts > Real Estate > Tax Planning: U.S. > Nonprofit Law

Questions Answered By Expert Harvey Mechanic
In Category Nonprofit Law

Subject	Date Asked

Soccer Booster Club	11/22/2009
Q: My question pertains to use of fundraising money. Our booster organization was just incorporated ... A: If the size of the team is reasonably large then the IRS should grant exemption and payments as you ...
employer demands employees volunteer	11/21/2009
Q: I work part-time for a nonprofit and was told that I have to volunteer at some of their special ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Property tax when occupant is non-profit	11/21/2009
Q: Does the owner of a building get any reduction in property tax if occukpant is a non-profit ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
organzation	11/21/2009
Q: i am a memeber of a sports group non profit. is there a set of rules besides the bylaws that govern ... A: It would only be in the articles of incorporation or bylaws as to the rights of members. That is ...
What kind of Fund for Building	11/21/2009
Q: Our community recently found out about a disabled child who lives in a poor housing situation. We've ... A: You could have the group, an unincorporated association, set up some articles of association and ...
Non-Profit renting	11/20/2009
Q: we are a 5013c organization(church) and we are planing to purchase(financed) the building that we ... A: As long as the church maintains its regular religious services it will not lose its IRS 501(c)(3) ...
501c3 sports organization	11/20/2009
Q: If a 501c3 sports organization has several teams, can each team have its own account based on fees ... A: The IRS has not objected to teams collecting for their benefit as long as there are more than a few ...
Administrative fees	11/19/2009
Q: Is it correct that non-profits can only use 17% of their income on administrative fees (salaries)? ... A: No, it is not correct that non-profits can only use 17% of their income on administrative fees ...
501C(3) School volunteers and Gifts	11/19/2009
Q: We are a private parochial school. Our athletic director employee wishes to provide gifts to his ... A: The vast majority of nonprofits have no problem with allocating resources to the treatment of ...
501C(3) School volunteers and Gifts	11/18/2009
Q: We are a private parochial school. Our athletic director employee wishes to provide gifts to his ... A: The IRS does not bother about gifts valued at $25 or less as to general business expense deductions ...
for profit ownership of not for profit 501(c)(3)	11/18/2009
Q: I saw an old response here stating that a for profit cannot own a non-profit 501 (c)(3). ... A: http://law.justia.com/illinois/codes/chapter65/2280.html is Illinois General Not For Profit ...
Non-profit youth sports, Ca	11/18/2009
Q: My two daughters are part of a non-profit youth cheerleading team. They started in March, and I ... A: Just like universities may charge tuition, other nonprofit organization may require fees for ...
Separation of Church&State and History of tax-exempt status for religious faiths	11/18/2009
Q: I read you answer about the history of the 501 tax exempt status for charitable institutions, but ... A: I don't believe that a federal court would call it an issue of taxation without representation. ...
Gifts to Coaches	11/18/2009
Q: Our coaches are given cash gifts that range from $500.00 to s much as $2500.00 per year. These ... A: First I need to ask if the nonprofit organization is an employer of the coach. Also I will need to ...
Separation of Church&State and History of tax-exempt status for religious faiths	11/18/2009
Q: I read you answer about the history of the 501 tax exempt status for charitable institutions, but ... A: You are welcome. See http://tinyurl.com/ys4zna on pdf page ---Start of Excerpt-- Since the ...
Grants to Individuals in Foreign Country	11/18/2009
Q: I have a 501(c)3 that brings underprivileged international students to the states to go to college. ... A: You don't need a statement or a receipt. Just like a domestic organization keeps records by ...
Donating abroad	11/18/2009
Q: I have a 501(c)3 that brings underprivileged international students to the states to go to college. ... A: I don't understand why you would not send the funds directly to the student, as the IRS suspects ...
501c3 Church and payment of ministers	11/17/2009
Q: I am a member of a small home-based church group that is incorporated as a 501c3. We meet in homes ... A: The IRS does not allow 501(c)(3) organizations to give someone more compensation than is ...
non profit misrepresentation of tip allocation	11/17/2009
Q: We are a 501(c)(3) sports organization that works concessions for fundraising at a NASCAR event. ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Church with oil royalty payments	11/17/2009
Q: Our church recently leased our property for drilling of a gas well.The well will not be on our ... A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
Paying wages in advance	11/17/2009
Q: Are there any laws prohibiting or limiting the payment of wages in advance for a salaried employee? A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Articles Of Association	11/16/2009
Q: When starting a new Church, what documents are needed to be viewed as legal by banks? Where might I ... A: Maryland Corporations and Association Code http://law.justia.com/maryland/codes/gca.html You may be ...
Articles Of Association	11/16/2009
Q: When starting a new Church, what documents are needed to be viewed as legal by banks? Where might I ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
What is considered Gross Receipts?	11/16/2009
Q: As a newly incorporated AA Convention, we are filing for the 501(c) 3 and are having a question ... A: All funds are to go into your bank account and those are considered into gross receipts. The IRS ...
Articles Of Association	11/16/2009
Q: When starting a new Church, what documents are needed to be viewed as legal by banks? Where might I ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Gymnastics Boosters Club	11/16/2009
Q: I have read your article and our boosters club is very similar to example B. I have one question we ... A: If you want assurances, you would either have an attorney experienced at the law of nonprofits to ...
2 non-profits on same property	11/16/2009
Q: I was told that it is not legal for 2 non-profits to operate on the same property. Co-mingling of ... A: Many nonprofits share the same office space, but there should be a written agreement as to the use. ...
Gymnastics Boosters Club	11/16/2009
Q: I have read your article and our boosters club is very similar to example B. I have one question we ... A: See, starting at the middle of page 10 of www.irs.gov/pub/irs-tege/eotopico94.pdf under the heading ...
Trust funds and the church	11/16/2009
Q: Several years ago, a deacon of the church deposited a certain amount of money in a trust fund and ... A: Usually, before establishing an account entitled "trust" fund, a bank would require either a ...
Non-Profit disclosure	11/15/2009
Q: I have a question regarding a 501(c)3 organization in Ohio. This organization hosts and sanctions ... A: Generally, the only persons who ahve access to minutes of the Board of Directors are the Board ...
Starting a non profit for an art organization	11/15/2009
Q: I am the president of a regional art association of nearly 100 members. We had been an 'offspring' ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Accumulations of Funds	11/14/2009
Q: I work in a 501c nonprofit school. I’m part of a committee that is creating a fund for staff ... A: You are welcome. It is not the burden of the citizen in the United States to show a case that shows ...
How can we roll over funds for staff training within a 501c nonprofit?	11/14/2009
Q: I work in a 501c nonprofit school. I’m part of a committee that is creating a fund for staff ... A: See www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf starting on page 77 as to Educational ...
Non tax-deductible non-profit	11/14/2009
Q: My husband wants to start a tax-exempt non-profit that does NOT give donors tax-deductions. I am not ... A: Of all of the 501(c) organizations only the 501(c)(3) organizations allow donors to deduct ...
Booster Club	11/13/2009
Q: I am a member of a Parent Booster club supporting high school students' academics. We raise funds to ... A: There is no "special status" for booster organizations under California or IRS rulings unless the ...
Parent Association Requirements on Members	11/13/2009
Q: This is in regard to a parent association that is getting 5013c status. We pay assessment fees, ... A: It appears that you are referring to what the IRS refers to as a booster organization. Such an ...
EIN number for Church	11/13/2009
Q: I'm starting a church. It' my understanding that churches are automatically tax exempt, and ... A: You, as an individual, may register a dba (sometimes called fictitious name) with your local ...
EIN number for Church	11/13/2009
Q: I'm starting a church. It' my understanding that churches are automatically tax exempt, and ... A: The church may apply for EIN online at the IRS SS-4 site: ...
501(c)3 and individual ministry start-up	11/13/2009
Q: I am starting a religious ministry to the homeless which will include counseling and the ... A: You may certainly set up an organization for 501(c)3 status as a religious or charitable ...
Benevolence	11/13/2009
Q: Are there any specific rules about the amount of benevolence given to members of a church vs ... A: There should be no benefit in being a church member if the church wants to allow donors to deduct ...
new 501 c 3 museum	11/13/2009
Q: The church that I am a member of has maintained a museum of religious and ethnic artifacts since the ... A: It is true that many grant-makers will not give funds to religious organizations. Therefore, I ...
Unpaid internship - F1 visa	11/12/2009
Q: I am an international graduate student at the University of Minnesota; I arrived in the US in August ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
property transfer between non-profits	11/12/2009
Q: In Illinois, is there a way to do a property transfer from one non-profit organization to another as ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
creating non profit	11/12/2009
Q: My wife and I run fitness camps for Adults as well as kids. We would like to set up a non-profit ... A: 1. 501(c)(3) charity organization (that is not private foundation) may raise money and accumulate ...
Donating and Remaining Non-Profit	11/12/2009
Q: Hey there, I'm a University student in California and would like to throw on an campus party. ... A: I would need to see the exact university rule, but usually the nonprofit would need to be a ...
fraudulant use of 501(c)3	11/12/2009
Q: Can a person change the name of a 501(c)3 organization and the name of the person it is registered ... A: http://bit.ly/rAnjH is the Iowa code and hit "Control F" to search the page and search "Chapter ...
law questions	11/11/2009
Q: Can a person who is holding the title of officer in a non-profit that is aimed at helping people ... A: That organization will not qualify for 501(c)(3) organization status as there is private inurement ...
law questions	11/11/2009
Q: Can a person who is holding the title of officer in a non-profit that is aimed at helping people ... A: I am assuming from what you wrote that the organization is a 501(c)(3) organization. Is the ...
fraudulant use of 501(c)3	11/11/2009
Q: Can a person change the name of a 501(c)3 organization and the name of the person it is registered ... A: Give me your state of incorporation and I will send you the link from that State's code. But ...
Buying non-profit	11/11/2009
Q: How do I take over the Board of Directors, in this case is called the Executive Board? I am ... A: I would be willing to work on your matter, but, if you want to hire me for such further work, please ...
Buying non-profit	11/11/2009
Q: How do I take over the Board of Directors, in this case is called the Executive Board? I am ... A: The board would need to vote in your board. As for assets, see ---Start of Excerpt-- (B) (1) A ...
501 C 3 Membership	11/11/2009
Q: Sir, I am the elected President of a newly formed band booster club. We are in the process of ... A: No, there are no federal laws prohibited such discrimination based upon age of youth. Some states ...
Booster Club	11/10/2009
Q: I am a member of a Parent Booster club supporting high school students' academics. We raise funds to ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Copies of Form 1023	11/10/2009
Q: Is there a way to get electronic copies of organizations' filed Form 1023? I know the Foundation ... A: I do not know of any site that posts Form 1023s of many organizations. Anyone may request a copy ...
sale of real property by a 501 (c) 19	11/10/2009
Q: Would the sale of NON-FINANCED real property by a 501(c)19 organization be subject to taxation ... A: If the organization has received a determination letter from the IRS that the organization is exempt ...
Non-profit purchase	11/10/2009
Q: Harvey- It is an Ohio non-profit. A: Therefore you should obtain a copy of the articles of incorporation with any amendments (they are ...
501c3	11/10/2009
Q: We started a new Booster Club at a local High school and would like to know if it necessary or is it ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Theft	11/10/2009
Q: We have discovered a theft by a director from our 501(c)(3) bank account (several ATM withdrawals ... A: 1. If the Board knows of a theft and does not seek repayment, then the IRS could allege that there ...
Buying a non-profit	11/10/2009
Q: I am wanting to purchase a non-profit organization in Cincinnati, Ohio. It is a youth sports ... A: A copy of the organization's IRS exemption letter will describe under which section the IRS has ...
Buying a non-profit	11/10/2009
Q: I am wanting to purchase a non-profit organization in Cincinnati, Ohio. It is a youth sports ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Age Limitations for Organizations	11/9/2009
Q: I work for a non-profit (status sill pending) that is youth based. The elected board members have ... A: Certainly there is some discrimination evident there, but I do not know of any law that prohibits ...
Specific Donations	11/9/2009
Q: If a donor gives a sum of money to a non-profit and makes it clear in writing/email that "This money ... A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
non profit	11/9/2009
Q: I was wondering how NY both City and State deal with incometax issues of non profit organization? ... A: As for the State of New York filing, there is no fee for the CT- 247 for a small organization. See ...
Conflict of Interest/Grant writing	11/9/2009
Q: I sent you the following question but could not follow up. I was told to start a new question. I ... A: Exempt organizations' determination letters state that if its mode of operation changes it should ...
Donations whle determination in process?	11/9/2009
Q: Our company has received a letter that states the IRS has received our application for 501(c)3 and ... A: The IRS may take months to issue the exemption determination letter, but as long as you file your ...
Conflict of Interest/Grant writing	11/9/2009
Q: I am the president of the board of a non profit theatre. We recently had a shake up on the board ... A: How long ago did you send in your last papers regarding that form 1023 application? What is the ...
return of donor gifts	11/8/2009
Q: I hope I can give some background. Donations were made to a public/government entity. Public ... A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
Inurement	11/8/2009
Q: I understand that the allocation of fund raising to individuals is not allowed (inurement rules)in a ... A: An IRS article about such intermediate sanctions and excise taxes under IRS §4958 is at: ...
Severe cruelty at 501-C Cat Sanctuary	11/8/2009
Q: A cat "sancturary" here in Florida is a not-for-profit 501-C. The owner has thousands of cats in ... A: I am not aware that state animal cruelty laws give exemptions or different treatment to 501(c)(3) ...
Filing for 501(c)(3)	11/8/2009
Q: I'm part of an organization that is currently finalizing it's filing to become a 501(c)(3) ... A: See instructions to Application for Exemption www.irs.gov/pub/irs-pdf/i1023.pdf in the right column ...
Inurement	11/8/2009
Q: I understand that the allocation of fund raising to individuals is not allowed (inurement rules)in a ... A: The Board can distribute funds as long as it is not based upon a prohibited reason, such as the ...
gift giving to members of church	11/8/2009
Q: Can a church purchase gifts to presnt to members at Christmas with a value of $35.00 to $40.00 ... A: I am assuming that the church gives receipts to donors that they may deduct donations. Then the ...
fraudulant use of 501(c)3	11/8/2009
Q: Can a person change the name of a 501(c)3 organization and the name of the person it is registered ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Individual accounts from fund raising	11/8/2009
Q: We are a parent organization formed primarily to support competition related expenses for club ... A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to collect funds to go ...
legal risk for board members	11/7/2009
Q: I am the "Chair" for a 501(c)3,we are in good standing with all regulatory agencies.Our organization ... A: Are the Board members volunteers? Let me know and I will then send you some information. Also, your ...
Inurement	11/7/2009
Q: I understand that the allocation of fund raising to individuals is not allowed (inurement rules)in a ... A: The IRS does not prohibit fundraising earmarked for a team where there are more than a few members. ...
fraudulant use of 501(c)3	11/7/2009
Q: Can a person change the name of a 501(c)3 organization and the name of the person it is registered ... A: First let me inform you that, if you are representing a competitor, you may be able to sue that ...
RE Tax reimbursment for a NPO	11/6/2009
Q: We have a non-profit educational organization. We are operating in a leased building. We use 100% of ... A: Counties sometimes allow real property exemption based upon use and not ownership and that is what ...
quiting board members	11/6/2009
Q: Members of our 501(c)(3) quit recently leaving us with only 3 members. We have since voted one more ... A: Search (Control-F) on http://snipurl.com/4663n for 5301 at about 40% of the way down that page to ...
RE Tax reimbursment for a NPO	11/6/2009
Q: We have a non-profit educational organization. We are operating in a leased building. We use 100% of ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
quiting board members	11/6/2009
Q: Members of our 501(c)(3) quit recently leaving us with only 3 members. We have since voted one more ... A: Your issue is controlled by state law and states may differ somewhat with how they would treat such ...
quiting board members	11/6/2009
Q: Members of our 501(c)(3) quit recently leaving us with only 3 members. We have since voted one more ... A: There is no report to make when the organization is not in compliance with its own bylaws as to ...
Rental Income - churcy	11/6/2009
Q: Does a church have to file a 990T if it receives rental income from another non-profit agency? A: Whether the rental income is from a nonprofit or a for-profit is not an issue with the IRS. The ...
can 501(c)3 donations be used to upgrade private	11/6/2009
Q: about a mentally ill person. I have another question. This is a listing on a site called Charity ... A: No. A 501(c)(3) organization may not spend money generally that goes to improve private property. ...
Booster Clubs and Sports Teams	11/6/2009
Q: Does a Booster Club have to be separate from their 501c3 team in order to be legal? We have a sports ... A: The term "booster club" is a vague term in reference to tax and entity law. Therefore, there may be ...
Fund raising for non Profit car club	11/5/2009
Q: Here is the question quick and simple can the wives form there own group, name it and collect money ... A: They may certainly engage in taxable business activities as long as they comply with all normal tax ...
Conflict of Interest/Grant writing	11/5/2009
Q: I am the president of the board of a non profit theatre. We recently had a shake up on the board ... A: You are welcome. Search (Control-F) on http://snipurl.com/4663n for 5301 at about 40% of the way ...
Conflict of Interest/Grant writing	11/5/2009
Q: I am the president of the board of a non profit theatre. We recently had a shake up on the board ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
contracts	11/5/2009
Q: Local 501c3 sports/mentoring organization leases the baseball fields from the city. The ... A: You are welcome. Other than the organization giving you the information voluntarily you would need ...
contracts	11/5/2009
Q: Local 501c3 sports/mentoring organization leases the baseball fields from the city. The ... A: As for your state law on Open Records and Open Meetings See ...
Collecting Donations in Miami Without a 501(c)(3)	11/5/2009
Q: I am in the creation phases of a non-profit to clean up the channel that runs through Miami Beach ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Assessing FMV for corporate charitable contributions	11/5/2009
Q: Let's say that a large pharm corp donates a large dollar value (>$1.5M) of medical consumables ... A: The 501(c)(3) organization does not value inventory that is donated to it. You would acknowledge ...
Is this legal?	11/5/2009
Q: I live in Iowa,and we have a lady in the area that in living on mental disability, yet she has a ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Suggested Donation	11/4/2009
Q: We are raising money for our childrens ministry and giving away T-shirts. In our announcement we ... A: See the IRS Publication "Charitable Donations --- Substantiation and Disclosure Requirements" ...
501c3 Telephone	11/4/2009
Q: I am a board member for a 501c3. By law do we have to have a phone number listed? We would like to ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Deposits from fundraising events	11/4/2009
Q: I am involved with a 501 c3 booster club for athletics at our public high school. After a recent ... A: Unless you have signed a contract with the school specifying something else, a booster corporation ...
Sell a church building and ajacent property	11/4/2009
Q: Can a church in Virginia sell its building and all adjacent properties owned by its members after ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
501 C 3	11/4/2009
Q: We have just started a new band booster club at out local high school. Our club will support all ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Donation from an Incorporation	11/4/2009
Q: We are a church organization and I have received a check from an incorporation. The individual who ... A: Tax law is based upon entity (and, therefore, tax-id). A corporation has a different tax-id compared ...
non profits & open meetings	11/4/2009
Q: The board of our local Red Cross chapter does not hold open board meetings. I live in California. ... A: As for your state law on Open Records and Open Meetings See ...
donation of services	11/4/2009
Q: Mr. Mechanic, I read an answer you gave explaining that under 501c3, non-profits cannot give tax ... A: Services is the same as time. As to charitable deductions: See IRS Publication 526 "Charitable ...
Fundraising Incentives	11/3/2009
Q: I belong to a 501(c)3 sports club. We are not a school sports or club booster organization. We ... A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to collect funds to go ...
disbursement percentage	11/3/2009
Q: I am a member of a bicycle club with 501c status. currently the club disburses all of its proceeds ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
public disclosure	10/25/2009
Q: what if a non-profit organization(church) refuses to give you a copy of their 501c and a financial ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Filing for a dog club	10/25/2009
Q: I am a member of a flyball club, which is a dog sport. We compete in tournaments, and, at present, ... A: Section 501(c)(3) of the Internal Revenue Code allows exemption to foster national or international ...
Conflict of interest	10/24/2009
Q: Could you give me the regulations on Conflict of Interest. The Board is hiring someone to do ... A: Section 5227 of the California Corporations Code has: "Not more than 49 percent of the persons ...
LLC or Corporation for nonprofit?	10/24/2009
Q: I am planning on establishing a nonprofit and applying for 501(c)(3) status. My funding will ... A: You are welcome. See www.irs.gov/irm/part7/ch10s06.html#d0e93499 --start of excerpt --- 1. ...
LLC or Corporation for nonprofit?	10/24/2009
Q: I am planning on establishing a nonprofit and applying for 501(c)(3) status. My funding will ... A: The IRS grants 501(c)(3) organization exemption status to LLCs that are properly organized and ...
Non-Profit Reporting	10/24/2009
Q: I am a member of a Pop Warner/All American youth Football organization. The Board of Directors is ... A: I am assuming that the Pop Warner group is a 501(c)(3) organization. Therefore, they would need to ...
Non-profit rules	10/23/2009
Q: Is there a single source of info for non-profit organizations that cover requirements other than ... A: Those issues are controlled by state law and states differ somewhat with how they would treat such ...
firing a employee	10/23/2009
Q: Are non-profit organizations in Pa, required to have a board of directors? If so does the board ... A: If you are referring to a nonprofit corporation, yes, it is required to have a board of directors. ...
Conflict of interest	10/23/2009
Q: Could you give me the regulations on Conflict of Interest. The Board is hiring someone to do ... A: A conflict of interest is present whenever a director has a material personal interest in a ...
non-profit 501 (C)3 educational organization	10/23/2009
Q: My question is regarding public meetings for a non-profit 501 (C)3 educational organization. My ... A: As for your state law on Open Records and Open Meetings See ...
Foreign not for profit grant recipient	10/23/2009
Q: We are a not for profit foreign organization with no ties to the US and receiving a grant from a US ... A: They are requesting the W-9 form for their bookkeeping. But you are correct that the W-9 does not ...
Different Requirements for Different Members	10/23/2009
Q: My son and daughter are members of a team, not a booster organization, that is a registered 501C3. ... A: A 501(c)(3) organization may not require someone to raise funds for his own account and have that ...
Can I maintain my nonprofit's 501(c)3 status if I move it to another location in the same state?	10/23/2009
Q: I run a 501(c)3 arts organization, which applied for received 501(c)3 status in New York City. I ... A: You maintain 501(c)(3) organization status with the IRS. You would file with the IRS form 8822. ...
inurenment to benefit	10/23/2009
Q: IRS pub 4221 presents great detail for recordkeeping, reporting and disclosure. But the whole pub ... A: It depends how the Board words the resolution. They may certainly give reasonable compensation to a ...
Election of Youth Football Board of Directors	10/23/2009
Q: I am a parent in a non-profit youth football organization in California. There is no ballot vote by ... A: You will need to see the Articles of Incorporation. http://snipr.com/ay58c Starting at section 5002 ...
Church and the 501c3	10/23/2009
Q: Greetings! I am sure that this question has been asked of you before but... Does a Church need to ... A: See instructions to Application for Exemption www.irs.gov/pub/irs-pdf/i1023.pdf in the right column ...
Tax Exempt Status Carryover	10/22/2009
Q: I noticed a recent posting where you stated that where a 501c3 reincorporates in another state, the ... A: No other authority exists, as far as I know. I suggest that an officer of your organization call ...
Donation	10/22/2009
Q: I am a bookkeeper for a 501(3)c non profit organization. They have held cultural festival. For the ... A: First we need to decide whether the information printed in the booklet would be considered by the ...
501c3	10/22/2009
Q: DreamKatcher Ranches Inc. a 501c3 a therapeutic and hippo therapy ranch for children. We are going ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Annual Meeting Requirements for Nonprofit	10/22/2009
Q: I am a member of a Nonprofit Mutual Benefit Corporation. Recently, we have discovered two, ... A: You are not in any trouble. The member certainly would have a cause of action in state court ...
Annual Meeting Requirements for Nonprofit	10/22/2009
Q: I am a member of a Nonprofit Mutual Benefit Corporation. Recently, we have discovered two, ... A: Unless someone within the organization objects, there will not be any issue. I suggest that you try ...
Renting Parsonage	10/22/2009
Q: We are a set up as a religious institution under the NY Not-For-Profit Law. We have an ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
nonprofit	10/22/2009
Q: Can I establish a nonprofit organization to generate donations that will be spent on tuition and a ... A: The IRS does not grant exemption to an organization nor does it allow an organization to maintain ...
Contribution required to receive a benefit	10/22/2009
Q: My child attends a private, religiously-affiliated school which is part of a church. The school ... A: No, such payments are not at all deductible as donations. See ...
charitalbe gaming	10/22/2009
Q: I have a question I do not know if you can help me or not but I do Charitable Gaming for are band ... A: The Board of Directors of the 501(c)(3) organization or School Board, if it is a public school, ...
board meetings	10/21/2009
Q: 1)Can board meetings be held privately without the public being notified? 2)I have asked repeatedly ... A: 1. Generally, yes. 2. If a nonprofit has received IRS exemption determination or files annual ...
nonprofit law	10/21/2009
Q: I understand that a nonprofit organization has to have a board of directors but was wondering if ... A: Chapter 181 of Wisconsin Statutes "Nonstock Corporations" which is found at: http://bit.ly/owJe6 ...
Designated donations	10/21/2009
Q: I am the Vice President of a sports related non-profit organization in Texas. We have members who ... A: I am assuming yours is a 501(c)(3) organization and it may not inform potential donors that ...
Cheerleading Disbanding / fundraising distrubutions	10/20/2009
Q: My daughters high school comp cheer team recently disbanded. Each team member raised funds through ... A: I am assuming that the school is a public high school and that the booster group is not separately ...
Volunteer rescue squads 501c3	10/20/2009
Q: Can a Volunteer Fire/Rescue non-profit corporation that has a 501c4 qualify for a 501c3? A: Yes, many volunteer fire/rescue organizations qualify for 501(c)(3) organization status. It would ...
Companies Collecting Donations	10/20/2009
Q: Can companies collect donations for outside charities (American Cancer Society, Boy and Girls Club, ... A: Yes, a for-profit company or individual may be a professional fundraiser. The site ...
Who can we donate to?	10/19/2009
Q: I was wondering if it is allow to make a monetary donation to an individual? Or can we only allocate ... A: The IRS has written in a memo on page 2 of www.irs.gov/pub/irs-wd/0504031.pdf ---Start of Excerpt-- ...
Gymnastics Booster Club	10/19/2009
Q: Would it be violating our exempt status if: 1. we only allow higher competition levels to be members ... A: 1. When you tie membership with beneficiaries it appears that you are a cooperative instead of a ...
competitive cheerleading booster club accounts	10/19/2009
Q: We are forming a Booster Club for a competitive cheerleading team and working on completing our ... A: As to your specific question, you would need to distribute funds even though families do not ...
Donations to Bible Study Group	10/18/2009
Q: We are not incorporated, nor do we plan to be. We are a small bible study group, and we sponsor ... A: Donations are not tax deductible unless you are an unincorporated association which is discussed ...
Non- profit to non-profit rental income	10/18/2009
Q: Our church organization rents our facility to a Charter school during the week. We use the same ... A: See page 9 of www.irs.gov/pub/irs-pdf/p598.pdf wherein we see "Rents from real property... are ...
501c3	10/18/2009
Q: We are a camera club that is working toward a 501c3 status. My question, When we have speakers ... A: As to charitable deductions: See IRS Publication 526 "Charitable Donations" ...
nonprofit law	10/17/2009
Q: I understand that a nonprofit organization has to have a board of directors but was wondering if ... A: Your issue is controlled by state law and states may differ somewhat with how they would treat such ...
Nonprofit Conflict of Intrest	10/17/2009
Q: My kids play at a hockey association that is a 501(c)(3). Last year the BOD decided to sign a 3 year ... A: There are two issues here. 1. Whether the IRS should revoke the organization's 501(c)(3) ...
501(c)(6)	10/17/2009
Q: Are 501(c)(6) groups allowed to sell high valued merchandise to raise money for the group? ANSWER: ... A: Generally a one-time activity would not jeopardize the exempt status. However, I would need to ...
501(c)(6)	10/17/2009
Q: Are 501(c)(6) groups allowed to sell high valued merchandise to raise money for the group? A: It appears that you are referring to a 501(c)(6) "Business League" about which the IRS writes at ...
501c3 Benefits	10/17/2009
Q: It is my understanding that donations/contributions to 501c3 organizations are tax deductible for ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Charity using an assumed name	10/17/2009
Q: Harry, thanks for this website and your expertise. We have formedc a public charity, have our ... A: You may certainly use an assumed name in your state and donations are deductible if the funds go ...
501c3 charges	10/16/2009
Q: Can a 501c3 charge me a fee that they have not been charged and benefit another members account with ... A: Your issue is controlled by state law and states may differ somewhat with how they would treat such ...
501c3 charges	10/16/2009
Q: Can a 501c3 charge me a fee that they have not been charged and benefit another members account with ... A: 501(c)(3) organizations are allowed to charge people fees for goods or services or for membership. ...
non-profit sale of property	10/16/2009
Q: Our non-profit was organized in New York in 1938 but we own property in Oregon and have operated ... A: The relevant section of New York Not-for-Profit Corporation Law is §510 http://snipurl.com/nynpcl ...
non-profit sale of property	10/16/2009
Q: Our non-profit was organized in New York in 1938 but we own property in Oregon and have operated ... A: Ok, then what percentage of your assets is that real estate? We are not concerned, per se, whether ...
non-profit sale of property	10/16/2009
Q: Our non-profit was organized in New York in 1938 but we own property in Oregon and have operated ... A: I don't understand why you wrote that you can't see why you would need permission to sell property ...
Discrimination	10/16/2009
Q: Can a non-profit lose its status if it envokes rules or by-laws that include or exclude ... A: You would definitely be violating laws if your retrictions were based upon race. There are federal ...
Can my personal donation be taxable?	10/16/2009
Q: I am a owner of a nonprofit that is 1 year old. I've been donating my own money to keep it running. ... A: First I want to point out that nobody owns a 501(c)(3) organization as it does not have ...
Tax Exempt status for High School Booster Clubs	10/16/2009
Q: I'm a high school teacher and coach. I've just taken over the track program and have a general ... A: If an organization grosses more than $5000 it needs to file and receive IRS determination as to ...
non profit name change	10/16/2009
Q: I am the president of a local youth soccer league that is non profit with a 501c3 status. Our ... A: I am assuming the League organization is a corporation. It will first need to amend its articles of ...
felonies and 501c3 organizations	10/15/2009
Q: we have a member that had a felony conviction in 2002 and his probation ended in 2007. can he serve ... A: http://snipr.com/cb5zq is the Nevada Nonprofit Corporation Code and, if the church is such a ...
Scholarship Fund	10/15/2009
Q: I am on the board of a nonprofit that has raised money to use as post-High School scholarships for ... A: If you membership is relatively small then you would not be allowed to give funds to student members ...
Scholarship Fund	10/15/2009
Q: I am on the board of a nonprofit that has raised money to use as post-High School scholarships for ... A: Is your 501(c)(3) organization a private foundation? Also I will need to know whether you have ...
trust vs membership non Profit (Texas)	10/15/2009
Q: I have an assosiation that I want to incorporate as a non profit. we will supply additional career ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Rights of the donor	10/15/2009
Q: What information must a nonprofit 501(c)(3) organization public charity provide to a donor upon ... A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
Non Profit Web Site	10/15/2009
Q: I am starting a web site that is an experiment in social development of musical works. The costs for ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Can a Non-profit be a majority owner of for-profit related business?	10/15/2009
Q: There is strong demand for a downtown daycare, however, because of increased space costs and outdoor ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
501(c)(3) merchandise tax refund question	10/15/2009
Q: A Director within a 501(c)(3) organization in Texas purchased some items for the organization ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
felonies and 501c3 organizations	10/15/2009
Q: we have a member that had a felony conviction in 2002 and his probation ended in 2007. can he serve ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
officer limitations	10/14/2009
Q: What limitations are there on dual positions being held by officers: i.e., can the President also be ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Can my personal donation be taxable?	10/14/2009
Q: I am a owner of a nonprofit that is 1 year old. I've been donating my own money to keep it running. ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Love offering for the Pastor	10/14/2009
Q: 1. As a trustee officer or a deacon of the church,can we take up a love offering for the pastor or ... A: The church would not want to be too involved directly in the process of arranging additional funds ...
Reporting small donations	10/14/2009
Q: We are a 501(c) organization and received donated goods that are valued under $100. We've provided ... A: Tax-exempt organizations (other than Private Foundations which need file form 990-PF) with annual ...
Love Offerings to Pastor	10/13/2009
Q: The issues with love offerings are very confusing. Money (love offering) taken up for the Pastor ... A: As to charitable deductions: See IRS Publication 526 "Charitable Donations" ...
nonprofit with for-profit publishing corp	10/13/2009
Q: We are forming a corporation which will be publishing a series of books, and the proceeds from these ... A: It may qualify, but the IRS would look at any private benefit, such a as royalties to copyright ...
Starting a ministry	10/13/2009
Q: Ok I want to start a ministry that will 1) allow me to preach and run my preaching and speaking ... A: The IRS does not allow 501(c)(3) organizations to give someone more compensation than is ...
founder and ex board member liability	10/13/2009
Q: How long is a founder or ex board member liable for any problems or issues that arise in a non ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Garage sale donations to high school Booster Club	10/13/2009
Q: I asked you the question earlier about giving out tax deductible receipts to people who donated ... A: Yes, you would describe the items donated but not try to put a value, which is the responsibility of ...
Starting a ministry	10/13/2009
Q: Ok I want to start a ministry that will 1) allow me to preach and run my preaching and speaking ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Tax deductions for items donated to booster club	10/13/2009
Q: Our high school booster club is having a garage sale to benefit our baseball booster club. Can we ... A: Is the high school booster organization incorporated as a 501(c)(3) organization? If not, what is ...
501 c 7 scholarship awards	10/13/2009
Q: I'm a member of a 501 c 7 sorority. Each year we award scholarships to female seniors based on ... A: The IRS has a discussion of 501(c)(7) social organizations at ...
501(c)7 raising money for a 501(c)3	10/13/2009
Q: We are a qualified, tax exempt 501(c)7. We would like to have a fundraiser (silent auction, charity ... A: It appears that you are referring to a 501(c)(7) recreational or social organization about which the ...
transfering food box from one church to another	10/13/2009
Q: We are a Church that has a community kitchen operating under its 501c3....another church in town has ... A: Generally any papers are considered legal papers and I do certainly advise that it is required that ...
advisory board	10/12/2009
Q: We have a newly formed nonprofit organization, and we are preparing the 1023 filing. We have kept ... A: Having a advisory board would be something you could put into your 1023 application filing, but it ...
Fund mismanagement	10/12/2009
Q: What laws govern PTAs (civil codes?)? If a member suspects board members of mismanaging funds, how ... A: Articles of incorporation and bylaws and state law, if applicable, are the documents that would ...
High School Athletic Boosters Club	10/12/2009
Q: Currently, our High School Boosters Club voted not to pay for the coaches yearly trip from our ... A: The school will not be able to disband the 501(c)(3) organization unless there is something in the ...
non profit or not for profit and does it fit	10/12/2009
Q: i wish to consider forming an organization that would collect donated materials to then give to ... A: To take deductions, the donors would need to give to a 501(c)(3) organization and, certainly there ...
Sport team	10/12/2009
Q: I own a women's football team. The league has approved that a team can be non-profit. I am trying ... A: It appears that you are referring to a 501(c)(7) recreational or social organization about which the ...
Sport team	10/12/2009
Q: I own a women's football team. The league has approved that a team can be non-profit. I am trying ... A: Is the team of youth aged 18 or below? If so, it may be qualify for 501(c)(3) organization status. ...
Mortgage for Real Estate Purchase	10/12/2009
Q: My 501c3 organization may purchase real estate to use exclusively for our purposes. I understand ... A: It depends upon the valuation of the property (fair market value). If you have title go into your ...
benefits of nonprofit corporation	10/12/2009
Q: My husband runs a sports club that in the past has fielded 3 to 6 loosely affiliated youth baseball ... A: Well, then I doubt that anyone who completes due diligence would want to take responsibility for ...
Booster Club charging Late Fees	10/12/2009
Q: My son is a gymnast who trains and competes for a private for-profit facility. The competitive team ... A: No one is required to join a 501(c)(3) booster organization. If there were such a requirement in ...
fund raising prior to 501(c)(3) status	10/12/2009
Q: We have recently created a nonprofit in California, but we are still in the process of getting ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
501c3 bylaws	10/12/2009
Q: I am a football coach with a Non-Profit football program 501c3 in the state of Michigan. There has ... A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
Non profit sports club	10/11/2009
Q: We have a local sports club that my kids have been involved with for 6 years now. We have had many ... A: I am assuming from what you wrote to me that the organization is a 501(c)(3) organization (you can ...
501c-7 change to 501c-3	10/11/2009
Q: Our sportsmen's group in now a 501c-7, but all our activities are for children and we fit more in ... A: It appears that your articles of incorporation and bylaws would mention the c7 and, therefore, you ...
benefits of nonprofit corporation	10/11/2009
Q: My husband runs a sports club that in the past has fielded 3 to 6 loosely affiliated youth baseball ... A: If the corporation has grossed income of $5000 or less annually since incorporating it will be ...
Using another's 501(3)(3)	10/11/2009
Q: I have a question regarding the "adoption" of a nonprofit org. I recently formed a horse rescue, ... A: First the 501(c)(3) organization would follow their State law and articles and bylaws for electing ...
Use of Funds	10/11/2009
Q: The past president of our not-for-profit 501(c)(3) science/hobby club had some personal property ... A: I do not see that the 501(c)(3) organization would be directly spending funds on one of its own ...
Charity Event held at Board Member's business	10/11/2009
Q: Our 501 (c) (3) recently held a golf outing at the country club owned by one of our Board members ... A: The main issue is whether those 3 related board members have recused themselves from the decision. ...
Using another's 501(3)(3)	10/10/2009
Q: I have a question regarding the "adoption" of a nonprofit org. I recently formed a horse rescue, ... A: Yes. As long as their 501(c)(3) organization is not a membership organization (only voting members ...
Nonprofit Proxy voting law in California	10/10/2009
Q: Can Board of Director members of a non-profit vote by proxy in California? If so, where are the ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Asset Management	10/10/2009
Q: It is my understanding That all 501(c)(3) corporations MUST break even or show a loss each quarter. ... A: A 501(c)(3) organization that is not a private foundation may accumulate funds for years, as long as ...
Salary prior to receiving 501c3 determination	10/10/2009
Q: We are starting a small non profit religious corporation and have filled the necessary state and IRS ... A: It appears that you are, instead of incorporating quickly, using some of your time filling out the ...
sharing funds with another non profit	10/9/2009
Q: If one non profit collaborates with another, can they "split the award between organizations? ... A: I guess our messages are crossing. I just wrote to your earlier follow-up and that should give you ...
sharing funds with another non profit	10/9/2009
Q: If one non profit collaborates with another, can they "split the award between organizations? ... A: I still don't know what you mean by the word "award". The word award is only used in the area of ...
sharing funds with another non profit	10/9/2009
Q: If one non profit collaborates with another, can they "split the award between organizations? A: I would need to know the subsection of IRC 501(c) under which the organizations were incorporated ...
Can a Parent's Association pay an indvidual for their services if they don't have a tax ID number?	10/9/2009
Q: I am the treasurer of a Parents Association for an NYC public school. We often bring in performers ... A: No, that is not true if the individual is actually, according to common law, an independent ...
Booster Club charging Late Fees	10/9/2009
Q: My son is a gymnast who trains and competes for a private for-profit facility. The competitive team ... A: The for-profit gym may not conspire with a 501(c)(3) booster organization to require payments going ...
can (should) this be a non profit company.	10/9/2009
Q: My company, soup Kitchen, Inc. was created to see the end of world hunger. We have a line of soups, ... A: Correct. Section 502 of the Internal Revenue Code reads, in relevant part, "An organization operated ...
Can a Parent's Association pay an indvidual for their services if they don't have a tax ID number?	10/9/2009
Q: I am the treasurer of a Parents Association for an NYC public school. We often bring in performers ... A: The IRS has no such prohibition. Individuals may always be hired and a Social Security number may be ...
Personal Gain from non-profit org	10/9/2009
Q: If a member of the board of directors for a non-profit organization in California receives "reward" ... A: Well, I am assuming that the Board member has been authorized by the nonprofit organization to ...
questioning tax deduction	10/9/2009
Q: If a loyal donor wants to host an event in their home and wants to send the nonprofit the bills (for ... A: As for the taxes paid on the food, that is a state tax law issue. I have in my profile that this ...
Housing Allowance for Furniture?	10/9/2009
Q: Harvey, We have recently hired a fulltime youth pastor who will be living in one of our church-owned ... A: Section 107 of the Code provides, ---Start of Excerpt-- In the case of a minister of the ...
Football Pools	10/9/2009
Q: I was recently informed of a way to raise funds for our youth sports non-profit ... A: For federal rules see: www.irs.gov/pub/irs-pdf/p3079.pdf is an IRS Publication "Gaming Publication ...
Individual Fundraising Accounts	10/9/2009
Q: I am working with parents at a competitive dance studio who are looking for ways to raise funds to ... A: It appears that you are referring to a 501(c)(7) recreational or social organization about which the ...
fund raising activities	10/8/2009
Q: We have just registed a nonprofit unincorporated association a few days ago in California and we ... A: Many potential donors will not give funds to an organization if it can not provide to them a copy of ...
501c3 for acquirement	10/8/2009
Q: Ive recently been asked if I would 'sell'/allow to acquire my 501c3 for an organization that offers ... A: No one owns a 501(c)(3) organization as there is no stock issued for such organizations in most ...
Use of Building Fund monies for something other than building a building	10/8/2009
Q: Harvey, I have perused a number of answers to similar questions. My problem is finding what the ... A: Jeff, I have in my profile that this free forum is only for relevant IRS federal exemption issues ...
donating to a library	10/8/2009
Q: Our LLC has an advertising service agreement with a city library entity who is not-for-profit where ... A: When a contract obligates funding then the IRS generally would not allow a charitable deduction but ...
booster clubs	10/8/2009
Q: I am a member of a booster club which in itself is not 501(3)c. The school it supports is, they want ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Fundraising	10/8/2009
Q: Our Youth Church group is going to be raising some money by working a booth in the fair. We wanted ... A: If you give benefits for work that is considered by the IRS as taxable employment compensation, just ...
501(c)(3) vs. 170(b)(1)(A)(iv)	10/8/2009
Q: I'm trying to understand the difference between a 501(c)(3) and a 170(b)(1)(A)(iv). Is the 170 a ... A: Section 501(c)(3) deals with organizations that are exempt in certain categories like charitable, ...
EIN - 501(c)(3)	10/8/2009
Q: Our charitable organization has heretofore been associated with another charitable organization, and ... A: Well, you can not have it both ways. Either you are part of the same corporation or you are ...
nonprofit with for-profit publishing corp	10/8/2009
Q: We are forming a corporation which will be publishing a series of books, and the proceeds from these ... A: Section 502 of the Internal Revenue Code reads, in relevant part, "An organization operated for the ...
A non-profit 501 (c) (3) organization's fundraising	10/8/2009
Q: I know a non-profit 501 (c) (3) organization that has been making money by providing clients such ... A: If a substantial amount of of the activities of the organization is legal services, then it ...
sale of church parsonage	10/7/2009
Q: Our Church recently closed. We sold the parsonage. Will we have to pay tax at the end of the year ... A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
EIN - 501(c)(3)	10/7/2009
Q: Our charitable organization has heretofore been associated with another charitable organization, and ... A: What you are referring to is called by the IRS group exemption. Group Exemption is discussed ...
non discriminatory clause	10/7/2009
Q: New Morning School is a nonprofit, 501(c)(3) organization. I want to be sure we are using the most ... A: See IRS Publication 557 "Tax Exempt Status for Your Organization" www.irs.gov/pub/irs-pdf/p557.pdf ...
Contributions to Specific Individuals 501c3	10/6/2009
Q: We are a 501c3 organization to support youth hockey. We receive contributions from individuals and ... A: Yes, a 501(c)(3) booster organization such as yours appears to be, may make grants to individuals ...
non-profit donation qualification	10/6/2009
Q: I'm an artist that has produced an illustration of a crane (bird) from a stock photo company. I'm ... A: I think you are asking how the nonprofit should offer the t-shirt so it is not a sale but is offered ...
Coaches on Board of Directors	10/6/2009
Q: We are exploring creating a non-profit for the gymnastics team whose purpose is to award ... A: That would be a problem with the IRS and I have seen denials when there is not a board composed of ...
Creating Grants	10/6/2009
Q: I help manage a nonprofit foundation connected to several large music festivals. We raise funds ... A: 2. Public charities may grant funds to non-exempt entities or individuals. From page 2 of ...
Stockholder Agreement for NonProfits	10/6/2009
Q: What special considerations should be given to a stockholders agreement for a non-profit. The lack ... A: Nonprofit organizations have an intial Board of Directors and either the articles of incorporation ...
Stockholder Agreement for NonProfits	10/6/2009
Q: What special considerations should be given to a stockholders agreement for a non-profit. The lack ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
buying/selling land used by a non-profit	10/6/2009
Q: Mechanic, Thank you for answering these questions. I would like to open an art school that is also a ... A: It appears that you are referring to a 501(c)(3) organization as you want grants and most grant ...
Creating Grants	10/6/2009
Q: I help manage a nonprofit foundation connected to several large music festivals. We raise funds ... A: 1. See IRS instructions for Form 990 and 990-EZ www.irs.gov/pub/irs-pdf/i990-ez.pdf on pdf page 33 ...
Fundraisers	10/5/2009
Q: If a school has a 501(c)tax exempt certificate and does fundraiser and the fundraiser are setup to ... A: Yes, that is considered benefits for work which means it is taxable as compensation. It may be a ...
501c3 relations with private interests	10/5/2009
Q: Can a 501c3 organization temporarily make its facilities available to a private interest group? A: A 501(c)(3) organization may rent its facilities to for-profit entities but should not give the use ...
501(c)(7) supporting a 501(c)(3)	10/5/2009
Q: We have a volunteer Association that is a 501(c)(7) and support (we are the donor) a Foundation ... A: I am assuming that the insiders of the (c)(7) have no personal financial interest in the activities ...
501(c)(7) supporting a 501(c)(3)	10/5/2009
Q: We have a volunteer Association that is a 501(c)(7) and support (we are the donor) a Foundation ... A: Everything looks like a normal fundraising event. Who choses the charity that will be receiving a ...
Exclusion	10/5/2009
Q: Can a 501 C(3) church keep any persons from attending their events or programs? ANSWER: Generally ... A: Your issues are controlled by state law and states may differ somewhat with how they would treat ...
Exclusion	10/5/2009
Q: Can a 501 C(3) church keep any persons from attending their events or programs? A: Generally the IRS does not have any regulations as to the openness of the church as to allowing ...
Booster Clubs	10/5/2009
Q: I work for a school district, and we are starting to receive numerous calls asking whether or not it ... A: A 501(c)(3) organization that is a booster organization certainly may charge membership fees but ...
expenses	10/5/2009
Q: What expenses can legally be paid by the church for the pastor. A: The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses ...
Corporate Sponsors	10/5/2009
Q: As a 501c3 asking for donations, is there any issue with going beyond individuals and seeking ... A: See, starting at the middle of page 10 of www.irs.gov/pub/irs-tege/eotopico94.pdf under the heading ...
Fundraising for an Individual	10/5/2009
Q: Can a group or organization acquire tax exempt status for solely fundraising for an individual minor ... A: No. The IRS does not grant exemption to an organization nor does it allow an organization to ...
Umbrella another non-profit group	10/5/2009
Q: Can a church use their 501c3 to umbrella another non-profit organization that educates children ... A: What you are referring to is called by the IRS group exemption. Group Exemption is discussed ...
501c3 and thrift store	10/5/2009
Q: I have a 501c3 non profit and also run a steri-clean business that cleans a lot of hoarder ... A: Sales of donated items will not effect a 501(c)(3) organization's status as the activity is not ...
For-Profit, Donors, Nonprofit, Online Transactions, Tax Deductions	10/4/2009
Q: Are there any legal issues with a for-profit company providing a service which processes online ... A: I am not going to read that whole www.smallcanbebig.org site. But if you are referring to families ...
For-Profit, Donors, Nonprofit, Online Transactions, Tax Deductions	10/4/2009
Q: Are there any legal issues with a for-profit company providing a service which processes online ... A: I don't know what you mean by sponsoring 501(c)(3) organization, especially because you put quotes ...
For-Profit, Donors, Nonprofit, Online Transactions, Tax Deductions	10/4/2009
Q: Are there any legal issues with a for-profit company providing a service which processes online ... A: Title to the money needs to go directly from the donor to the 501(c)(3) organization in order for ...
Renting space to a "for-profit" business	10/4/2009
Q: Can a church use its main facility to rent space to private "for- profit" businesses, like ... A: A church may maintain its 501(c)(3) organization status as long as it maintains it weekly worship ...
charity	10/3/2009
Q: I am organizing a soccer tournament for charity. How do I get a tax Id number for businesses and ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Civic Association	10/3/2009
Q: Can a Civic Association that files its state and federal taxes as non profit ask for mandatory dues ... A: You are welcome. Your state would have a way to treat covenants even if it does not have a state law ...
Hosting a Fundraiser without 501C3 Status	10/3/2009
Q: I have been running a charitable initiative to help the homeless with one of my community non-profit ... A: Within a few days or a week we can usually incorporate and then immediately obtain a tax-id for the ...
Civic Association	10/3/2009
Q: Can a Civic Association that files its state and federal taxes as non profit ask for mandatory dues ... A: It appears that you are referring to a 501(c)(4) organization as the IRS describes as a Civic ...
501 c 3 name change	10/2/2009
Q: We are currently incorporated as CKC MInistries, however we woulkd like to change the name to ... A: The name change with the State of Ohio is in the form of an amendment of the Articles of ...
Non Profit Motorcycle Clubs	10/2/2009
Q: I belong to a motorcycle club in Texas. We have 9 other chapters through out the US (California, ... A: It appears that you are referring to a 501(c)(7) recreational or social organization about which the ...
Donation to 503(C) organization	10/2/2009
Q: My daughter is going on a school sponsored government class field trip to Washington D.C. The ... A: Even if you do not conspire to evade taxes by your arrangement with each other, a earmarked donation ...
Determination Letter	10/1/2009
Q: In order to receive grant monies, would I have to submit a copy of the nonprofit determination ... A: That is generally the procedure that the grant-makers would require so that they can be assured that ...
DBA for a 501-c-3 Non Profit...	10/1/2009
Q: My rescue parner and I have a 501-c-3. However, we want things more separate now. I am going to ... A: There will only be one corporation, and therefore, only one tax-id used and only one federal annual ...
Advertising vs. Acknowledgement	10/1/2009
Q: I am on a league who offers our sponsors a sponsorship package that includes free tickets to our ... A: I did give you the IRS ground-rules, but, as I have written in my profile, I do not work on details ...
Advertising vs. Acknowledgement	10/1/2009
Q: I am on a league who offers our sponsors a sponsorship package that includes free tickets to our ... A: IRS Publication 598 "Tax on Unrelated Business Income of Exempt Organizations" at ...
501(c)(3)'s ban on equipment	10/1/2009
Q: Our 501(c)(3) booster club has a separate earmarked fund in which a percentage of all fundraised ... A: It appears that you are referring to Section 501(c)(3) of the Internal Revenue Code which allows ...
Corporation Members Recieving Salary	10/1/2009
Q: Can a founding member of a non-profit corporation be paid a salary by that corporation for services ... A: You are welcome. Section 5227 of California Nonprofit Public Benefit Law: (a) Any other ...
Free Access to Online Coupons	9/30/2009
Q: Mr. Mechanic, Thank you so much for your time. I have created a website www.bigfatcoupon.com which ... A: You are welcome for my time. What you are referring to is what the IRS calls advertising of ...
Taxes 10% rule	9/30/2009
Q: If I own a business and want to fund a non profit I began with income from this business (a c corp), ... A: There are lower limits of 10% of your taxable income as yours is a regular (C) corporation. Section ...
Non-profit individual	9/30/2009
Q: As a U.S. pastor residing in a South American country I receive donations for the poor from U.S. ... A: No. Only donations to U.S. 501(c)(3) organizations are deductible. As to charitable deductions: See ...
Non-profit individual	9/30/2009
Q: As a U.S. pastor residing in a South American country I receive donations for the poor from U.S. ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Is financial assistance to students reportable?	9/30/2009
Q: Mechanic: Our high school booster club is a 501(c)(3) entity. We had an overseas educational field ... A: I am assuming that your booster organization is a public charity. Public Charities' Record Keeping ...
Refunding a Donation to a Foundation	9/29/2009
Q: We are a 501c3 and have been asked tor refund a doantion received from a Private Foundation,also a ... A: You may issue them a check. Usually an organization that pays $600 or more would be required to ...
Company Match to 501c	9/29/2009
Q: I've read some of the responses on donations to a baseball organization that is part of a 501c. My ... A: The 501(c)(3) organization is correct as to the issue that your funding is not at all a donation ...
Non-profit startup	9/29/2009
Q: My wife and I want to start a non-profit for adult and children education (our residence is in a ... A: It appears you want to donate real estate to the 501(c)(3) organization and then have the 501(c)(3) ...
Team Fundraising	9/29/2009
Q: Mechanic: I'm the president of the local pop warner football and cheer club and this year several ... A: It appears that the teams are engaged in sales activities with the benefit going to their particular ...
Band Boosters	9/29/2009
Q: I have just taken over the treasurer position for a long standing band boosters club associated w/ ... A: 1. An organization, like the school may let another group use its EIN (Tax-id) but then all funds ...
Starting a non profit	9/28/2009
Q: I recently moved to a new city and their is no motorcycle clubs close by. I would like to start a ... A: The IRS explains that, when applying for the Employer Identification Number, the club may check the ...
Starting a non profit	9/28/2009
Q: I recently moved to a new city and their is no motorcycle clubs close by. I would like to start a ... A: Forming a club is easy, but then the main issue is to the sales of items. It appears that you are ...
Non profit travel baseball	9/28/2009
Q: My son was just kicked off of his non profit travel ball baseball team for something they say his ... A: Well, as your fees evidently were not prepaid for more than one month, the organization would not ...
Non profit travel baseball	9/28/2009
Q: My son was just kicked off of his non profit travel ball baseball team for something they say his ... A: I would first need to know whether the baseball team is receiving any benefits from a governmental ...
501 c 5	9/28/2009
Q: If a 501 c 5 receives a donation, do they have to specifiy where they are going to use it or can ... A: The 501(c)(5) would need to complete the annual return as required by the IRS. Tax-exempt ...
Real Estate and vehicles	9/28/2009
Q: I just started a non profit 501(c)(3)in May of 2009. I thought it would be a long time before I ... A: Ok, and did you already apply for the federal exemption with Form 1023? In any case, see IRS ...
Real Estate and vehicles	9/28/2009
Q: I just started a non profit 501(c)(3)in May of 2009. I thought it would be a long time before I ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Cash balance carryover	9/27/2009
Q: We are a 501(c)(3), deemed a public chariy under code 509(a)(2). Is there a limit to how much cash ... A: As long as you continue a substantail amount of parent activities, as you indicated in your ...
Financial disclosure criteria for staff of non-profits	9/27/2009
Q: Our non-profit academic organization utilizes part-time teaching staff, which then have other ... A: have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
A Last Project	9/26/2009
Q: I am in heart failure and am wondering about the possibility of an idea I have. I would like to ... A: Certainly you could take gifts from people who do not care about getting tax deductions and you ...
A Last Project	9/26/2009
Q: I am in heart failure and am wondering about the possibility of an idea I have. I would like to ... A: Sorry, but the IRS does not grant exemption to an organization nor does it allow an organization ...
Non profit paid positions	9/26/2009
Q: Yes I'm in the process of starting a non profit set up for my project to provide a place for the ... A: From the few facts that you presented, I cannot yet decide whether your organization is qualified as ...
Transfer of funds to city	9/26/2009
Q: We are a 501(c) who has a contract to manage a city owned historic building. Another company agreed ... A: I am assuming that the company that wants to fund the construction is not at all financially related ...
Transfer of funds to city	9/26/2009
Q: We are a 501(c) who has a contract to manage a city owned historic building. Another company agreed ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Non-Profit Laws	9/25/2009
Q: I have a ministry that I am about to start, and I wanted to know that if it consisted of paying ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Non-Profit Laws	9/25/2009
Q: I have a ministry that I am about to start, and I wanted to know that if it consisted of paying ... A: The activities would need to be mostly religious in nature. Any other sales activities would be ...
removal of a 501c3 president	9/25/2009
Q: Our school has a 501c3 pto. The year is off to a bad start with a new president. The first meeting ... A: First you need to look at the articles of incorporation as to the question relating to any provision ...
removal of a 501c3 president	9/25/2009
Q: Our school has a 501c3 pto. The year is off to a bad start with a new president. The first meeting ... A: http://snipr.com/ay58c Starting at section 5002 is the California Nonprofit Corporation's law and ...
removal of a 501c3 president	9/25/2009
Q: Our school has a 501c3 pto. The year is off to a bad start with a new president. The first meeting ... A: First you would look to your State law and then the articles of incorporation and then the bylaws. I ...
501(c)3 for Medical Cannabis program	9/25/2009
Q: I am submitting an application for the state of New Mexico to grow and dispense medical marijuana. I ... A: The Internal Revenue Code allows 501(c)(3) organization status to organizations that are charitable, ...
Contribution Refunds	9/25/2009
Q: Is there ever a case for refunding / returning a donation to someone? A: Yes, I have seen many cases, but generally the organization is not obligated. Generally, donors ...
Rental of space-last question	9/25/2009
Q: We applied for 501-c-3. (under educational and charitable) An agent called to speak clarify some ... A: Ok, then rental income is not considered unrelated business income. There will not be any tax due, ...
Rental of space-last question	9/25/2009
Q: We applied for 501-c-3. (under educational and charitable) An agent called to speak clarify some ... A: Before we go into those questions we need to back up. You need to inform me whether you have any ...
Football Booster Club	9/25/2009
Q: I am a member of a football booster club where there are no bylaws or input on how the money ... A: By your use of the word "umbrella" it appears that you are referring to what is called by the IRS as ...
Football Booster Club	9/24/2009
Q: I am a member of a football booster club where there are no bylaws or input on how the money ... A: It appears that the xx High School Foundation is in charge of the funds because it is their EIN ...
Football Booster Club	9/24/2009
Q: I am a member of a football booster club where there are no bylaws or input on how the money ... A: First I would need to know as to the boosters, whether it is part of the school or, in the ...
Can You Sell a 501(c)(3) Inc to Recoup Expenses of creating	9/24/2009
Q: My Wife & I went through the expense of creating a 501(c)(3) Inc under the impression that a major ... A: It appears that your organization has received a determination letter from the IRS that it is exempt ...
Starting a New Ministry	9/24/2009
Q: I would like to begin a Christian performing arts ministry. We will be performing at churches for ... A: The IRS may take months to issue the exemption determination letter, but as long as you file your ...
individual accounts	9/24/2009
Q: The band and choir booster club at our high school allows students to voluntarily participate in ... A: Work for benefits is considered taxable compensation. Besides the issues of an individual's tax ...
NonProfit Support to State	9/24/2009
Q: Is it appropriate for a non-profit to retain assets of a state owned building. Example: nonprofit is ... A: If you are referring to a 501(c)(3) organization that is a public charity. The IRS has no ...
minimal 501(c)(3)	9/24/2009
Q: Our High School music program has suffered massive funding cuts this year. I am considering a push ... A: The corporate donors and other donors would certainly want your organization to be approved as ...
When to file when you are a 501c3	9/24/2009
Q: In Michigan, a 501c3 that receives 80% (M/L) of its total income from the sale of its members ... A: The organization would need to complete and file form 1099-misc for each members that it pays more ...
Public Charity-individual accounts	9/24/2009
Q: We have a new high school cheer booster, non-profit 501c3 and incorporated. We prepared a list of ... A: Anyone may engage in business but then the business is generally taxable. If you are referring to ...
Public Charity-individual accounts	9/24/2009
Q: We have a new high school cheer booster, non-profit 501c3 and incorporated. We prepared a list of ... A: http://snipurl.com/boosterinf is my summary of IRS regulations relating to 501(c)(3) booster ...
Starting a nonprofit program	9/23/2009
Q: I am a single mother of 2 teenage boys, and I also have half of the basketball team over here.... ... A: Your organization would not qualify for 501(c)(3) organization status by the IRS. ...
501(c)(3) law re. subsidaries	9/23/2009
Q: Mr. Mechanic We are a 20 year old 501(c)(3)private foundation. Can the private foundation create a ... A: Yes, although, as to nonprofits we do not use the term "own" in relation to someone owning a ...
miss appropiation of funds& church property	9/23/2009
Q: (1)Upon review of your answers to the previous questions,I found that the following rules and laws ... A: They may be criminal or civil and then you could complain to your State's Attorney General's Office ...
Gifts to employees	9/23/2009
Q: Harvey, I am going to ask for your guidance in better understanding what tests should be considered ... A: That would be useful for a "employer sponsored emergency hardship" program. That appears to differ ...
Gifts to employees	9/23/2009
Q: Harvey, I am going to ask for your guidance in better understanding what tests should be considered ... A: I have not found any cases where the IRS viewed it as anything other than taxable. I certainly can ...
Gifts to employees	9/23/2009
Q: Harvey, I am going to ask for your guidance in better understanding what tests should be considered ... A: Sorry, but I have not seen any cases where either the IRS or the courts addressed when funds given ...
501c3 Fundraising	9/23/2009
Q: Is it illegal to make fundraising mandatory to parents of our 501c3 Booster Club? A: Such a mandate would preclude such an organization to attain to or maintain 501(c)(3) organization ...
Building international links	9/23/2009
Q: Would an organisation established to build links between a set of like minded US politicians ... A: I did not say or write that. I did not even have to get to that issue. A private group, like a ...
non-profit sale of property	9/23/2009
Q: Our non-profit was organized in New York in 1938 but we own property in Oregon and have operated ... A: I am assuming that you have received a determination letter from the IRS that the organization is ...
Board voting by non-members	9/23/2009
Q: If a 501c bylaws has two member categories, one voting and one non-voting, and the board consists of ... A: Even though this forum is not for such state law issues, if you give me your state I may be able to ...
501c status activities defined	9/23/2009
Q: When a 501c has one activity that is defined by the IRS as taxable, and if the 501c ceases to do ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Board voting by non-members	9/23/2009
Q: If a 501c bylaws has two member categories, one voting and one non-voting, and the board consists of ... A: Usually state law requires certain actions by the Board of Directors and, if there are members who ...
Fundraising for individual cheer fees	9/22/2009
Q: Our booster club chooses several different fund raising opportunities that parents can participate ... A: The $4 is taxable because it is going to the family benefit in exchange for work, whether contract ...
Non Profits Operating in Multiple States	9/22/2009
Q: How would a non profit go about providing services in multiple states, while only having a physical ... A: Each state requires registration as an out-of-state (foreign) corporation if a for-profit or ...
mileage reimbursement for 501(c)(3) officers	9/22/2009
Q: What is the $ amount allowable by the IRS to be paid to a volunteer, unpaid officer or director of a ... A: Your subject had "mileage reimbursement". www.irs.gov/formspubs/article/0,,id=178004,00.html has the ...
Recreational Cheerleading Squad	9/22/2009
Q: I am starting a recreational cheerleading squad in my town that is not school related. It will be a ... A: I am assuming the members will be youth under the age of 19. In order to have donations deductible ...
misappropiation of funds & church property	9/22/2009
Q: (1) Is it legal for the pastor of a church to have the authority to write checks,make ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Building international links	9/22/2009
Q: Would an organisation established to build links between a set of like minded US politicians ... A: I am concerned as to your statement that the foreign politicians would all belong to the same ...
Non profit services	9/22/2009
Q: I am forming a Non-Profit janitorial company that will employ women thru welfare to work and those ... A: The first issue is whether the IRS would grant to the organization the 501(c)(3) organization ...
Bylaws for a committee @ a High school	9/22/2009
Q: Currently at a local high school the parent association has a set of bylaws in place and the ... A: Even if you are referring to a corporation separate from the school, first we would need to look at ...
fundraising for booster club	9/22/2009
Q: Our athletic booster club does some fundraising to help offset some our expenses. We do one or two ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Fundraising for individual cheer fees	9/22/2009
Q: Our booster club chooses several different fund raising opportunities that parents can participate ... A: It appears that the booster organization, if it is a 501(c)(3) organization, is not operating ...
fundraising for booster club	9/22/2009
Q: Our athletic booster club does some fundraising to help offset some our expenses. We do one or two ... A: Yes, a 1099 if the worker is an independent contractor. See www.irs.gov/pub/irs-pdf/i1099msc.pdf ...
fundraising for booster club	9/22/2009
Q: Our athletic booster club does some fundraising to help offset some our expenses. We do one or two ... A: Only if you treat it as taxable compensation. Otherwise you are running a coop. In denying ...
Guard Tax Exempt Status	9/21/2009
Q: I am on the board of a private NC school. We are half-way through the 5 year tax exempt probationary ... A: The IRS would not see that particular change of term limits as a factor that would effect exemption ...
Donating to a non-profit	9/21/2009
Q: I have a question I haven't been able to find an answer for online...If you could be so kind and ... A: From page 10 of IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf "If you ...
Donating to a non-profit	9/21/2009
Q: I have a question I haven't been able to find an answer for online...If you could be so kind and ... A: Are you giving the copyrights to a 501(c)(3) organization - charitable, educational or religious ...
501 c 4 vs 527	9/21/2009
Q: I'm trying to determine the differences between a 501(c)4 and 527 non-profit. I've gone through the ... A: The IRS exemption determination letter to the HOA will have that applicable section. Also you can ...
Non-Profit 501(c)(3)	9/21/2009
Q: I know of a non-profit that is identifying themselves as a IRS 501(c)(3) for some time on their ... A: They may be incorporated under section 501(c)(3) and not yet filed their application for exemption. ...
Establishing basketball booster club	9/21/2009
Q: The parents of our basketball players at our high school would like to form a basketball booster ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Travel Team expenses	9/21/2009
Q: Roller derby leagues across the United States are getting non profit status based on amateur status. ... A: Then the reimbursements may not effect the status of the organization if the organzation, had, as ...
Travel Team expenses	9/21/2009
Q: Roller derby leagues across the United States are getting non profit status based on amateur status. ... A: Reimbursements or awards for travel expenses that do not exceed the real costs are not considered ...
Bank account and a club	9/21/2009
Q: I belong to a car club that is deemed non profit although we are not Inc. The clubs bank account is ... A: You are welcome. I suggest that you simply avoid using that term "non-profit" and just use the word ...
Bank account and a club	9/21/2009
Q: I belong to a car club that is deemed non profit although we are not Inc. The clubs bank account is ... A: I don't know why you stated that the club has been deemed (by the State and IRS) as a nonprofit ...
Summer Swim Teams and EIN's	9/21/2009
Q: I have just become president for our summer swim team, which is governed by our Homeowners ... A: It appears that you want the swim team to have their own entity. That would be either an ...
Proxy Voting	9/21/2009
Q: An HOA member having 13 lots/votes, gave his proxies to a person who, in turn, gave their proxy PLUS ... A: See http://law.justia.com/washington/codes/title64/64.38.html which is the Homeowners Association ...
Proxy Voting	9/21/2009
Q: An HOA member having 13 lots/votes, gave his proxies to a person who, in turn, gave their proxy PLUS ... A: Proxies are construed strictly and, therefore, the general authority would not extend to the ...
Non-profit renting space	9/20/2009
Q: Can a church rent a church owned building to a business and receive rent payments without causing ... A: If you are refering to federal 501(c)(3) organization status, see page 9 of ...
Non-Profit	9/20/2009
Q: I have formed a non-profit org in Texas. Have already received EIN from IRS. The main activity of ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated or ...
Legal	9/20/2009
Q: I have recently been voted in as V.P. of a band booster club of which I can not get any information ... A: Legally the officers, like the President and Treasurer must report to the Board of Directors all of ...
Fees	9/20/2009
Q: I am confussed can a booster club charge a mandatory fee or not? We wanted to but the band director ... A: http://snipurl.com/boosterinf is my summary of IRS regulations relating to 501(c)(3) booster ...
Booster Club Equipment Ownership	9/20/2009
Q: Just this month I was asked to be V.P. of a band booster club and I know nothing about such a club ... A: The IRS allows any 501(c)(3) organization to have tangible assets. There are some exceptions, but ...
Non-profit question	9/19/2009
Q: A local music store wants to create a non-profit to help struggling public school band programs. The ... A: There are two issues, but first I would need to know the approximate schedule and nature of the ...
Follow up to Booster to Booster payments	9/19/2009
Q: Our choral booster group gave up a fund-raising food stand to a band booster group. My daughter who ... A: Sorry. Ok, then you should check with the contract or agreement that the band group has with the ...
Ownership of Program Design and Trademark	9/19/2009
Q: I am the founder of a new nonprofit organization. I have designed a process of programming for a ... A: As long as the 501(c)(3) organization is not losing anything in using your program and it does not ...
what should I do	9/18/2009
Q: My husband and I are the founders of Miracles In Progress Aftercare Recovery Homes in Wilmington NC. ... A: 1. No one owns a 501(c)(3) organization and, therefore, the only issue will be who will have ...
Grant payments	9/18/2009
Q: I am part of a 501c3 that raises money to support the fine arts programs at our high school through ... A: Well, you appear not to be sending funds through the school. If did, then you would not need a 1099 ...
Moms' club- legal requirements	9/18/2009
Q: I am the treasurer of our local moms' club. The purpose of our organization is to support moms with ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
501 (c) 3 laws	9/18/2009
Q: Is it true that a 501 (c) 3 organization has to make all of their records available to the ... A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
transfer corporation from NY to CT with 501 c 3 status	9/18/2009
Q: We have an incorporation status in NY as a non profit and 501 c 3 status with the IRS. All of our ... A: You have three choices. 1. Maintain your NY registered office and register the present corporation ...
fundraiser raffle for kidney transplant	9/18/2009
Q: Someone related to me has a child who has been put on the active transplant list for a kidney. The ... A: First I should inform you that States highly regulate gambling (including raffles). For State rules ...
501C3 bids	9/18/2009
Q: I belong to a 501C3 and want to know do we need to get 3 bids on website design? We have a website ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Reimbursing tax on a purchase made for a 501(c)(3)	9/18/2009
Q: We are a 501(c)(3), we have members a who make purchases for the organization for example supplies ... A: Yes. The IRS rules on reimbursements for nonprofits are the same as for the reimbursements for the ...
reimbursement of sales tax for a 501 C	9/18/2009
Q: I am the president of a public school parents' association in New York City. We hold many ... A: No, that is not true as to the IRS rules relating to reimbursements. The IRS rules on reimbursements ...
Can a band parent organization charge a fee for parents who do not volunteer?	9/18/2009
Q: Please help! I am the new president of our high school band parent organization. The other board ... A: It is not volunteering if they are charged something if they don't work. Anyway, it appears that you ...
School and for-profit business relationships:	9/17/2009
Q: I am a martial arts instructor in Illinois and recently became aware that a public school PTA ... A: That phrase "equal protection" does not refer to decisions that the government makes as to what ...
School and for-profit business relationships:	9/17/2009
Q: I am a martial arts instructor in Illinois and recently became aware that a public school PTA ... A: I am assuming that the PTA martial arts is run under the aegis of a 501(c)(3) organization. The law ...
Payments to a gym owner	9/17/2009
Q: I am a member of a newly formed 501(c)(3) booster club. We collect money via fundraising and it ... A: The 501(c)(3) organization may send checks to the for-profit gym, but the payments need to be for ...
School and for-profit business relationships:	9/17/2009
Q: I am a martial arts instructor in Illinois and recently became aware that a public school PTA ... A: There are programs called "Educational" that are alloted by Congress (U.S. law) the nonprofit status ...
Booster set up by coach	9/17/2009
Q: I am a high school basketball coach in California. Am I able to start a booster club even though I ... A: Yes, you may start the 501(c)(3) organization, no problem. The issue is actually whether you would ...
Booster	9/17/2009
Q: I was wondering how to start a booster club for a for-profit gym. We have all-star cheerleading ... A: The IRS does not grant 501(c)(3) organization status for a booster organization for a for-profit ...
are membership dues tax deductable?	9/17/2009
Q: I am on the board of directors of a 501( c)3 non-profit homeschool group in Ca. We require members ... A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf on page 4 left ...
Owner says no to a Booster Club	9/17/2009
Q: Can a gym owner decide he no longer wants a booster club run out of his business due to drama and ... A: The gym owner may certainly not cooperate with your 501(c)(3) organization unless you have some ...
501(c)(3) reclassify 509(a)(1) to 509(a)(2)?	9/17/2009
Q: I am looking to start a non-profit that will eventually be a "Service Provider" but am wondering if ... A: The IRS looks at the organization's return (Form 990) after it is filed annually and they decide ...
501(c)3	9/17/2009
Q: We are offering our expertise in counseling people with regard to healthy living,offering ... A: You activity may be considered charitable by the IRS but I would not be able to give you my opinion ...
non-profit organization reimbusement of volunteer expenses	9/16/2009
Q: May a church reimburse short term mission trip expenses to trip participants? eg may participants ... A: First the church will need to decide whether those participants are acting for the church in what ...
Exempt Status - Religious Discrimination	9/16/2009
Q: Can a non-profit organization whose purpose is to raise and disburse funds for college scholarships ... A: Well, Hispanic is not a race but a national origin description. For example, some people born in ...
Non-profit organization	9/16/2009
Q: We have a non-profit softball association with 12 board members. Is the President able to vote on ... A: Officers are not the same as Directors. Generally only the Directors have a vote on the Board of ...
Non-profit organization	9/16/2009
Q: We have a non-profit softball association with 12 board members. Is the President able to vote on ... A: Your issue is controlled by state law and states may differ somewhat with how they would treat such ...
trust vs corp	9/16/2009
Q: I am involved with the formation of a new charitable organization with two potential tasks. To ... A: I generally recommend a trust if you are not going to solicit the public for donations. For some ...
Composition of a 501c3 board	9/16/2009
Q: Our 501c3 board had 5 members. Two were salaried employees of the exempt organization. Due to the ... A: Your issue is controlled by state law and states may differ somewhat with how they would treat such ...
donations to foreign NGO	9/16/2009
Q: I am a US citizen, making donations to an educational NGO fund in China. They do not have a charity ... A: See www.irs.gov/irm/part7/ch10s06.html#d0e93499 --start of excerpt --- Foreign ...
Exempt Status - Religious Discrimination	9/15/2009
Q: Can a non-profit organization whose purpose is to raise and disburse funds for college scholarships ... A: The IRS does not have any regulations prohibiting such activity, although they do have a regulation ...
nonprofit requirements for reimbursement	9/15/2009
Q: The non-profit (501c3) I volunteer with has a tendancy to not reimburse for purchases made on its ... A: Absent a contract with an employee a nonprofit or for-profit does not have an obligation generally ...
non-profits filing W-9?	9/15/2009
Q: My organization is applying for a grant through the state (which is receiving some federal stimulus ... A: www.irs.gov/pub/irs-pdf/iw9.pdf are the instructions to Form W-9 and on the first page (first ...
Are 501(c)(3) orgs' financial reports public?	9/15/2009
Q: I am a member of a sports league that is non-profit. I'm curious as to where all the money goes ... A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
church secret minutes	9/15/2009
Q: I am a staff member of a church which is designated so by IRS. Recently, we have a new Board of ... A: As for your state law on Open Records and Open Meetings See ...
501(c)(3) In kind exchange	9/15/2009
Q: I am the treasurer for a Church based Child Care center which has 501(c)(3) status. One of my ... A: A 501(c)(3) organization may certainly reduce fees or tuition for a family based on any or no ...
Typical Non profit cash flow	9/15/2009
Q: Recently the Chairman of our Board (our previous treasurer) made a statement to our new Board that ... A: It depends upon the size of the nonprofit and its mode of operations, but, in itself, having two ...
church secret minutes	9/15/2009
Q: I am a staff member of a church which is designated so by IRS. Recently, we have a new Board of ... A: Unless the articles of incorporation or bylaws provide otherwise, a Board of Directors may keep ...
501(c)(3) donations and earmarks	9/15/2009
Q: Our club which is a 501(c)(3) is looking at individual fundraising for our team as well as asking ... A: It appears that your organization is a team and not a booster organization. The team may require ...
How much must a private charity/ foundation donate	9/14/2009
Q: How much must a private charity under 501c3 donate to be in compliance with the law? Can the charity ... A: Please inform me whether the organzation is a public charity or, in the alternative, a private ...
Pending 501c3	9/14/2009
Q: Our organization is pending 501c3 status. According to the IRS hotline, we are able to operate as a ... A: I suggest giving donors a copy of IRS Publication 557 "Tax Exempt Status for Your Organization" ...
Non Profit versus For Profit	9/14/2009
Q: My church wants to teach seminars and classes for a fee at the church but it so the Pastor can have ... A: Certainly a church, like a university, may charge fees for seminars or classes. The Pastor may not ...
501C7 Bike Club forming separate 501c3 for bike donation	9/14/2009
Q: We purchase bikes annually to donate to low income kids and would like to form a separate 501C3 ... A: The fund needs to be separate financially and to have the organizational documents required for ...
501C7 Bike Club forming separate 501c3 for bike donation	9/14/2009
Q: We purchase bikes annually to donate to low income kids and would like to form a separate 501C3 ... A: It appears that you have already an IRS approved 501(c)(7) organization. See IRS Publication 557 ...
Church renting out space	9/13/2009
Q: I recently moved to NC and would like to set up a christian counseling practice in the church I now ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Non-Profit selling unneeded assets	9/13/2009
Q: If a non-profit sells a truck that is no longer needed, can a person affiliated with the non-profit ... A: Yes, a person affiliated with the nonprofit may generally purchase the vehicle at the right price. ...
Church renting out space	9/13/2009
Q: I recently moved to NC and would like to set up a christian counseling practice in the church I now ... A: The church may rent space but then they should get at least market rate rentals and then their ...
Disclosing 990 tax returns	9/12/2009
Q: What are my requirements for furnishing my prior years' tax returns for my 501(c)(3) organization to ... A: See FAQs About the Exempt Organization Public Disclosure Requirements ...
sale of church property	9/12/2009
Q: If a church owned property is sold, where should the proceeds from the sale go? If a church closes ... A: I am assuming that the church has been giving people receipts indicating that their past donations ...
Youth baseball team	9/12/2009
Q: We have started a youth baseball team. We have an EIN that we applied for in order to open a bank ... A: In order to receive donations that are deductible you would need to have some articles of ...
501(c)(3) for high school reunion	9/12/2009
Q: We are going to have an all-class reunion for the 100th anniversary of our high school which was ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Charter School non profit EMO's	9/12/2009
Q: Now, they seem to be exempt from disclosure as they were not created by a government agency and ... A: Other than getting an organizational insider to assist you I don't know that you have any rights to ...
Private non-profit EMOs and disclosure requirements	9/12/2009
Q: Harvey There is a surege in non-profit EMO's or educational maintenance organizations taking over ... A: As for California state law on Open Records and Open Meetings See ...
school districts setting up 501(c)(3)s.	9/11/2009
Q: Under IRC, can a school district set up a 501(c)(3) organization for the purpose of raising money ... A: Yes. The Internal Revenue Code is not particularly concerned who funds a 501(c)(3) organization, ...
501(c)3 by-laws	9/11/2009
Q: Is there a federal mandate that if the officers break an organizations' by-law the tax exempt status ... A: No, not per se. Now if the officers take too much compensation or do not have the insider deals ...
School -Dance Team	9/11/2009
Q: Can a school raise the dance team annual due by $250 when $180 of the cost is to social events? ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Cooperative Vs non profit	9/11/2009
Q: We are looking to set up a parent fundraising group for a volleyball team. Is it better to set it ... A: A cooperative may be a nonprofit, like a 501(c)(7) recreational or social organization about which ...
proper tax exempt status for Booster group	9/10/2009
Q: Our Band Booster group has applied for 501 (c)7 status as we would like to hold fundraisers such as ... A: If you can, please send me a copy of the letter from the IRS where they stated that the poitns ...
acquire an exisiting 501c3	9/10/2009
Q: Is it possible to acquire an existing 501c3, or is it preferable to apply directly to the IRS for ... A: Yes, it is possible to take over control of an existing 501(c)(3) but there would need to be due ...
Paying officers for actual work	9/10/2009
Q: I'm one of 6 biologists that started a nonprofit research group to learn more about coastal ... A: Nonprofits are allowed to pay reasonable salaries. At ...
Not a 501c3 org but want to do a charity event	9/10/2009
Q: A fraternity alumni group is wanting to do a golf outing to raise money for charity and give back to ... A: I became confused because you use the term "down payment" which is usually reserved for an ...
private non profit school clubs	9/10/2009
Q: Can small, private,501c3 schools have clubs like PTA and athletic boosters with a checking account ... A: Certainly a 501(c)(3) organization like a school may have a committee with certain authority. That ...
non profit	9/10/2009
Q: I am interested in starting a nonprofit breed specific animal rescue in California. Can you tell me ... A: http://www.sos.ca.gov/business/corp/pdf/articles/corp_artsnp.pdf has " This sample is provided to be ...
non profit	9/10/2009
Q: I am interested in starting a nonprofit breed specific animal rescue in California. Can you tell me ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Retro-Active 501 C 3	9/10/2009
Q: Can a non-profit obtain a retro-active 501 C 3 Status, for the past 5 years. A: No. The IRS may take months to issue the exemption determination letter, but as long as you file ...
fund raising	9/10/2009
Q: Is it legal for a for-profit athletic team to make fund raising with a minimum quota per family ... A: The for-profit organization may not exert control over the nonprofit 501(c)(3) organization. See ...
Not a 501c3 org but want to do a charity event	9/9/2009
Q: A fraternity alumni group is wanting to do a golf outing to raise money for charity and give back to ... A: You are confusing me now, as you stated that "The golf course down payment has to be paid with part ...
fundraising money	9/9/2009
Q: My daughter is in a competitive cheer team and I have worked as a volunteer at a local concert venue ... A: First I will explain that you are not a volunteer as your work is in exchange for profits to go for ...
Booster vs Non-Profit	9/9/2009
Q: Our dance company recently formed a booster club and decided it would be best to make it a ... A: In the following article there is a disscussion if the difference between a cooperative and a ...
Booster vs Non-Profit	9/9/2009
Q: Our dance company recently formed a booster club and decided it would be best to make it a ... A: I would need to review the applications for exemption (1023) of those organizations before I could ...
Fund raising	9/9/2009
Q: I am putting together a car wash fund raiser to help a friend thats 2 year old son just was ... A: I am assuming that neither your friend nor her family would be working, spending time on the car ...
Non Profit selling property	9/9/2009
Q: Ohio..... are there any stipulations regarding a non-profit organization selling it's property on ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Not a 501c3 org but want to do a charity event	9/9/2009
Q: A fraternity alumni group is wanting to do a golf outing to raise money for charity and give back to ... A: See IRS Publication 557 "Tax Exempt Status for Your Organization" www.irs.gov/pub/irs-pdf/p557.pdf ...
Two presidents/chairmen and organizations/corporations establishing the 501(c)3	9/8/2009
Q: First question is whether a 501(c)3 and its state-level nonprofit corporation can have co-presidents ... A: The IRS allows any number but generally if there is an issue of whether the corporation is acting ...
Two presidents/chairmen and organizations/corporations establishing the 501(c)3	9/8/2009
Q: First question is whether a 501(c)3 and its state-level nonprofit corporation can have co-presidents ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
informal association vs incorporation	9/8/2009
Q: i am a university student trying to start a nonprofit organization. the goal of my organization is ... A: Some grantors or donors like to deal with corporations as they think that a corporation is more ...
Booster vs Non-Profit	9/8/2009
Q: Our dance company recently formed a booster club and decided it would be best to make it a ... A: Your individual work for benefits precludes exemption qualification for such an organization as a ...
Board of Directors/Exec. Dir. Change by Employees	9/8/2009
Q: Is there any way a Majority Group of employees can reorganize a board of Directors, or Force a ... A: Unless the articles of incorporation or bylaws allow the employees any power, only the voting ...
Mortgage for Real Estate Purchase	9/8/2009
Q: My 501c3 organization may purchase real estate to use exclusively for our purposes. I understand ... A: A bargain sale of property to a qualified organization (a sale or exchange for less than the ...
509(a)1	9/8/2009
Q: I am being unbrellowed in under an existing 501c3 and need to set up my own 509a1 to do so, can you ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Begin operation while waiting for 501(c) 3	9/8/2009
Q: still not clear if at the time application for 501(c) 3 is pending, our organization can transfer ... A: I am assuming that the foreign organization has not received a determination letter from the IRS ...
Non-profit law	9/8/2009
Q: We just formed non profit organization with purposes to collect food, clothing and other donations ... A: Your organization may certainly begin operations after you ncorporated or set up an unincorporated ...
church collection	9/8/2009
Q: When a collection is raised in the church, is there a law that prohibit giving change while in the ... A: There would not be any law like that. I have in my profile that this free forum is only for relevant ...
Fair Market Value for Youth Team Sponsorships	9/7/2009
Q: In prior answers to questions about companies or individuals sponsoring youth sports teams (that are ... A: That questioner who I answered back in 2007 stated that the 501(c)(3) organization put the sponsor's ...
Sporting Club Bank Account Balances	9/7/2009
Q: I am a board member of a soccer club in Pennsylvania. I would like to know if we as a club can be ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
IRS Income Tax Exemption - Crime Stoppers Cash Rewards	9/7/2009
Q: I am a board member of a Virginia Crime Solvers 501(c)(3) group. Our by-laws restrict cash reward ... A: No I am not aware of any such federal law. I have in my profile that this free forum is only for ...
Fair Market Value for Youth Team Sponsorships	9/7/2009
Q: In prior answers to questions about companies or individuals sponsoring youth sports teams (that are ... A: Please give me the url for that past answer you were reviewing and then I will be able to see what ...
Designated Memorial Gift	9/7/2009
Q: After reading several questions on this subject I'm still a little fuzzy on this issue. Recently ... A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
Family Reunion Association	9/7/2009
Q: Other than obtaining 501(c)3 status for tax-exempt purposes, what other benefits are there for a ... A: I don't know the activities and beneficiaries of such an organization and, therefore, I could not ...
Non-profit meeting minutes disclosure	9/5/2009
Q: I am the board secretary on a nonprofit community swim team in Tennessee. Am I required to provide ... A: Open Meetings Laws in Different States and usually called "Sunshine Laws". Generally 501(c)(3) ...
houses donated to our church	9/4/2009
Q: We recently were deeded two small homes to our church. We are not sure how to use them legally, ... A: The church may charge rent and actually should charge at least fair market value for the rentals as ...
HOA 1120-H vs. 990	9/4/2009
Q: I am about to inherit the responsibility for the books of a very small (6 units) condo association. ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Non-profit club never filed with California	9/4/2009
Q: There is a small non-profit organization in an unincorporated area of California that has been ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Can you sell a nonprofit	9/4/2009
Q: My wife formed a non-profit low cost spay/neuter clinic about 6 years ago. It is doing very well, ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Non Profit Club to promote Women's Biz Interests	9/4/2009
Q: My sister wants to start a social club with a group of business women in Sierra Vista to promote ... A: A social club is generally categorized by the IRS as a 501(c)(7) organization which they describe ...
Charging for a festival	9/4/2009
Q: We are a new Non-for-Profit organization and we are doing a cultural festival and we are concerned ... A: Yes, unless you are subject to some contract that prohibits admission fees, 501(c)(3) organizations ...
Booster Club - Dissolved	9/4/2009
Q: First of all Thank you for all the information you have given in the past. You have really help me ... A: As you stated that the organization had articles of incorporation and bylaws but it not clear ...
Booster Club - Dissolved	9/3/2009
Q: First of all Thank you for all the information you have given in the past. You have really help me ... A: The articles of incorporation and bylaws would indicate who would need to vote to dissolve the ...
Losing 501 c 3 status	9/3/2009
Q: If you lose your 501 C 3 status to you also lose your state non profit status.? ANSWER: Your issue ... A: If you have questions about exemption...call 916.845.4171 (not toll-free). page 8 left column of ...
Losing 501 c 3 status	9/3/2009
Q: If you lose your 501 C 3 status to you also lose your state non profit status.? A: Your issue is controlled by state law and states may differ somewhat with how they would treat such ...
nonprofit operation outside of the U.S.	9/3/2009
Q: If our 501(c)(3) will have educational programs outside of the U.S., but has local operations as ... A: Yes your organization certainly would be considered to be operating outside of the U.S. as you will ...
new 501c3 org	9/3/2009
Q: This is my first time setting up a 501c3. i am working with a festival that has been going for a few ... A: Section 502 of the Internal Revenue Code reads, in relevant part, "An organization operated for the ...
leasing	9/3/2009
Q: I work for a 501c3 corp. We are looking into leasing office space and the owner has agreed to give ... A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf especially on page 8 ...
Disclosure Statement	9/3/2009
Q: Is there a disclosure statement that I should provide for collecting donations for my nonprofit? I ... A: Please note that 1023 filing fees are going up on January 3, 2010 * $400 for ...
new 501c3 org	9/3/2009
Q: This is my first time setting up a 501c3. i am working with a festival that has been going for a few ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Disclosure Statement	9/3/2009
Q: Is there a disclosure statement that I should provide for collecting donations for my nonprofit? I ... A: You wrote that you filed your state forms, but it is not clear whether the incorporation has been ...
501c3 & Individual Accounts	9/3/2009
Q: I ran accross this Q & A and I wish to add a question regarding this as well. Since Individual ... A: The "Individual Accounts" referred to by the IRS means ledger accounts of the 501(c)(3) ...
what are the statutory requirements and liabilities of registering in 501 C3 corporation.	9/3/2009
Q: We are India based non profit organisation and working with more than 1 million memebrs in India. We ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
501 (c) 3 losses	9/3/2009
Q: Will an annual loss for three consecutive years expose an organization to losing their 501 (c) 3 ... A: No. The IRS has no such regulation as to revocation of exemption. But note, from Revenue Procedure ...
Is Faithful Word Baptist Church in Violation of 501c3 tax exemption status?	9/3/2009
Q: Recently, news surfaced that Pastor Steven Anderson from Faithful Word Baptist Church explicitly ... A: Freedom of Speech is pretty broad and you have only given one example of the Pastor's speech ...
Is Faithful Word Baptist Church in Violation of 501c3 tax exemption status?	9/3/2009
Q: Recently, news surfaced that Pastor Steven Anderson from Faithful Word Baptist Church explicitly ... A: If you want to read up on the restrictions on political activity in detail I suggest from the IRS ...
Donations Earmarked to Group	9/3/2009
Q: If a not for profit organization of a sports club receives a donation from a particular parent, is ... A: Any kind of earmarking to direct funds to assist one's family would not be deductible if the size of ...
Church facilities	9/3/2009
Q: A day care center had a water leak problem. They inquired about using First Baptist nursery for ... A: A church may certainly rent its space for about one month and it will generally not be taxable. See ...
Non-profit ownership of intellectual property	9/2/2009
Q: When a researcher working for a 501(c)3 organization writes an article or a journal paper (or such ... A: I did write you earlier that the IRS would consider the scope of the publically available materials. ...
Gymnastics Boosters Payout	9/2/2009
Q: I am a parent of a young gymnast. We were members of Club A Gymnastics for the past 5 years. Last ... A: The booster organization may not be acting in accordance with IRS regulations as to 501(c)(3) ...
Changing fiscal year	9/2/2009
Q: The initial tax return has not been filed by a tax-exempt entity. If the tax-exempt organization ... A: Form 1128 instructions have "Section 442 says that you must obtain IRS approval if you want to ...
501(c)(3) youth baseball org fundraising	9/2/2009
Q: Can the donors claim charitable donation deductions, and does the 501(c)(3) corporation jeopardize ... A: It appears from you facts that the specific parents, who donate property, are not directly ...
Back to Confused - Curve Ball	9/1/2009
Q: Question to your answer in part A below - Can a 501c3 be entered into a contract with a for-profit ... A: The gym owner may certainly threaten to remove you from you positions, but it appears that he does ...
Back to Confused - Curve Ball	9/1/2009
Q: Question to your answer in part A below - Can a 501c3 be entered into a contract with a for-profit ... A: I am not going to go into all of the hypotheticals. However, a contract between a 501(c)(3) ...
Donations of time and money BY a public charity	9/1/2009
Q: Harvey, following up on an earlier question, are there ANY limits or conditions for one public ... A: The IRS has written in a memo on page 2, "A section 501(c)(3) organization may make grants to ...
501c3 Conflict of Interest?	9/1/2009
Q: We are a 501c3 organization and I just took over as president. After reviewing the By-laws and past ... A: Part A - the organization, unless bound by contract with the for-profit entity, may switch funding. ...
Sports Checking Account	9/1/2009
Q: I have read your previous replies to sports checking account questions from two years ago. Our ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Incorporating 501(c)3 or 501(c)7 "Honor Society"	9/1/2009
Q: We are a honor society by all definitions of the IRS and federal government, and I have two ... A: This forum is, as I have stated in my profile, for general questions as to IRS regulations. I would ...
Non-profit subsidiary of a private company?	8/31/2009
Q: I own an online community (forum) that is free to join. It's an online automotive site. My members ... A: A subsidiary means that the parent controls the subsidary. I don't know how, for a nonprofit ...
Open records	8/31/2009
Q: In a non profit organization, what is considered to be "reasonable" time to view the open records of ... A: Your issues are controlled by state law and states may differ somewhat with how they would treat ...
501 (c) 4 Dissolution of Corporation	8/29/2009
Q: What are the rules and requirements for dissolution of a Civic Association. A: Primarily your issue is controlled by state law and states may differ somewhat with how they would ...
Love offerings to Pastors	8/29/2009
Q: How should love offerings to a Pastor be handled in church legally? Can love offerings, with checks ... A: I gave you the two choices. If the gifts are given directly to the Pastor then the church has no ...
Expenses for at-home non-profit	8/28/2009
Q: I'm the president of a non-profit organization where I work solely from my home. Am I allowed to ... A: No you can not expense, as the word is normally used in tax law. See ...
Love offerings to Pastors	8/28/2009
Q: How should love offerings to a Pastor be handled in church legally? Can love offerings, with checks ... A: People may give funds directly to a pastor but then those gifts are not deductible to the donors. ...
booster club buy out	8/28/2009
Q: I am a parent of a gymnast and we are leaving the club. The season that I have paid dues for, to ... A: If you paid dues to the booster club it is not clear what your contract was with them, but they may ...
501c3 application-related board members	8/28/2009
Q: Can any of the related board members be related to the Pastor and can the board members be related ... A: Yes, but a majority of the Board should not be related and, in any case, they should avoid illegal ...
501c3 Legal Fundraising Activity	8/28/2009
Q: We are a 501c3 organization and I just took over as president. After reviewing the By-laws and past ... A: Grants may be made to individuals. Public Charities' Record Keeping Requirements are discussed at ...
Refund of donation	8/28/2009
Q: We're a newly organized and determined 501(c)3) that used a fiscal sponsor until determination. ... A: See IRS Publication 557 "Tax Exempt Status for Your Organization" www.irs.gov/pub/irs-pdf/p557.pdf ...
501c3 Legal Fundraising Activity	8/28/2009
Q: We are a 501c3 organization and I just took over as president. After reviewing the By-laws and past ... A: http://snipurl.com/boosterinf is my current summary of IRS regulations relating to 501(c)(3) booster ...
Non-Profit Subsidiary	8/28/2009
Q: I am a board member for a 501(c)3 Not for Profit organization. We are considering creating another ... A: No, it is not automatic. The new organization will need to stand on its own exemption unless it ...
Donation from a club to an individual	8/27/2009
Q: I am the treasurer with a youth sports club. We are 501c status. We offer a scholorship every year, ... A: Generally the IRS requires a 501(c)(3) organization to complete schedule [H of Form 1023] if it ...
Tax ID and Thank you letters	8/27/2009
Q: Do non profit organizations have to issue thank you letters and/or documentation to donors with ... A: See the IRS Publication "Charitable Donations --- Substantiation and Disclosure Requirements" ...
HOA	8/27/2009
Q: I am having trouble with my HOA I understand that HOA's are 501(c)3 organization are they not bound ... A: Homeowners Associations generally are not exempt under 501(c) ...
non-profit discriminates against members	8/27/2009
Q: Our local board of Realtors has recently formed a "Young Realtors of the Bluegrass" organization ... A: This forum is only for federal tax questions regarding 501(c)(3) public charities as I have ...
Is this fundraiser legal?	8/27/2009
Q: our gym owner is requiring us to participate in a nonprofit fundraiser to offset a "facilities fee" ... A: No, that does not appear to be a qualified 501(c)(3) organization, nor would the IRS grant 501(c)(3) ...
Athletic Booster Club Co Mingling of Funds	8/27/2009
Q: We have an athletic director at our high school that is too involved in the financials of our ... A: As you referred to your 501 status, I am assuming that the booster organization has received a ...
non-discrimination	8/27/2009
Q: I belong to the National League of American Pen Women. This organization has a 501c3 standing. From ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Individual Account under 501 (c)(3)	8/27/2009
Q: We currently have a drill team booster club setup under the 501(c)(3)and have several fundraisers ... A: I don't know what you mean by umbrella, but if you asking whether such activities would be in ...
Non-profit subsidiary of a private company?	8/26/2009
Q: I own an online community (forum) that is free to join. It's an online automotive site. My members ... A: Your second question may have been relatively quick but the answer is not. I would need to review ...
Non-profit subsidiary of a private company?	8/26/2009
Q: I own an online community (forum) that is free to join. It's an online automotive site. My members ... A: A for profit corporation may name all of the directors of a nonprofit, and, in that case, the ...
church	8/26/2009
Q: Can a church receive a 501c3 fund from the government and if so what are the guidelines? Are the ... A: It appears that you are asking whether the IRS can recognize a church as a 501(c)(3) organization ...
non profit BOD	8/25/2009
Q: Is a nonprofit(501(c)(3) required to notify the state when there is a change in the Board of ... A: Only biennially. The optional nature of other filing is found in the Corporations Code at §6210 ...
non profit BOD	8/25/2009
Q: Is a nonprofit(501(c)(3) required to notify the state when there is a change in the Board of ... A: Your issue is controlled by state law and states may differ somewhat with how they would treat such ...
Nonprofit, LLC questions	8/25/2009
Q: 1. Is there such an existence of a nonprofit LLC in Texas? 2. If I have set up an LLC in Texas, ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
financial transparency	8/25/2009
Q: The membership of our high school Booster Club has financial evidence based on treasurer's reports ... A: Complaints could go to your State's Attorney General's Office as that office generally oversees ...
Nonprofit, LLC questions	8/25/2009
Q: 1. Is there such an existence of a nonprofit LLC in Texas? 2. If I have set up an LLC in Texas, ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Retroactive Determinations	8/25/2009
Q: we are an animal welfare organization. We started in August 2008 and we raised over twelve thousand ... A: Sorry, it looks like I replied to your follow up with a blank reply. I am, therefore, revising it ...
tax deductible donations	8/25/2009
Q: we are an animal welfare organization. We started in August 2008 and we raised over twelve thousand ... A: The IRS may take months to issue the exemption determination letter, but as long as you file your ...
501c3 use and transfer	8/25/2009
Q: a spiritual teaching school obtained 501c3 status, operating within a related retail store. That ... A: It appears that the organization is not acting in accordance with IRS regulations for 501(c)(3) ...
humane society	8/25/2009
Q: Our local Humane Society is a nonprofit 501(c)3 who receives funding from our county, a stipend from ... A: Open Meetings Laws in Different States and usually called "Sunshine Laws". Generally 501(c)(3) ...
Payment of Dues	8/25/2009
Q: Is it legal for an organization to collect monthly dues and charge a admin fee, for months that are ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Change of Principal Office	8/24/2009
Q: Is there a state form to submit for a change of address of the Principal office of a not for profit ... A: Your issue is controlled by state law and states may differ somewhat with how they would treat such ...
non citizen treasurer on US non profit	8/24/2009
Q: Can a non-citizen serve as Treasurer for a non profit company in based out of Florida? A: http://law.justia.com/florida/codes/TitleXXXVI/ch0617.html is the Florida law for Not-for-profit ...
none profit org. financial statement	8/24/2009
Q: The president of our none profit organization (a church) has repeatly refused to make the finance of ... A: Unless you are given rights in the articles of incorporation or bylaws, the first amendment to the ...
refunding fundraising money collected by non profit organization	8/24/2009
Q: we are a youth sports team that does multiple fundraising events, (e.g. concessions, raffles, etc). ... A: Refunds may only go to the persons who made the donations, at their request, and refunds can not go ...
financial transparency	8/24/2009
Q: The membership of our high school Booster Club has financial evidence based on treasurer's reports ... A: First look at the booster organization's articles of incorporation and bylaws to see what rights, if ...
Foreigners as Directors or Officers	8/24/2009
Q: Are there restrictions as to whether officers or directors of a 501c3 organization need to be US ... A: You are welcome. http://law.justia.com/washington/codes/title24/24.03.html is the Washington ...
Foreigners as Directors or Officers	8/24/2009
Q: Are there restrictions as to whether officers or directors of a 501c3 organization need to be US ... A: Your issues are controlled by state law and states may differ somewhat with how they would treat ...
Cheerleading Booster Club	8/24/2009
Q: We have an all-star cheerleading booster club to support the members of the all-star cheerleading ... A: No, the 501(c)(3) booster organization is to assist youth in sporting, musical or some other ...
Love Offering	8/24/2009
Q: We had an individual speak at our church. A love offering was taken for him. Will I need to issue ... A: If the funds go first into the church bank account then the church may need to issue a form 1099 if ...
501c3 supporting foreign foundations	8/24/2009
Q: Can a non profit 501 c3 solicit donations which are then used to help out foreign non profit ... A: Yes. See www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and ...
Cheerleading Booster Club	8/24/2009
Q: We have an all-star cheerleading booster club to support the members of the all-star cheerleading ... A: A 501(c)(3) organization may send a payment to a gym for authrorized and appropriate services to ...
501C 3 Booster club for JROTC at HS	8/23/2009
Q: Mr. Mechanic, we have entered into the second year of an Air Force JROTC program at a high school in ... A: From what you wrote it appears that yours would qualify as a 501(c)(3) organization. You don't need ...
Recreational Basketball League as a Non Profit	8/23/2009
Q: This year I have joined the board of our local city recreational basketball league. Is this league ... A: You would not need then to be a registered nonprofit (if your group is not interested in donations). ...
501C 3 Booster club for JROTC at HS	8/23/2009
Q: Mr. Mechanic, we have entered into the second year of an Air Force JROTC program at a high school in ... A: Mr. Donovan, The IRS allows 501(c)(3) organization status to organizations that are charitable, ...
Articles of Incorporation for a Non Profit	8/23/2009
Q: Is there required verbage regarding the adoption and signing of the articles of incorporation for a ... A: If you are referring to the IRS procedure as to the articles of incorporation that are to be ...
Articles of Incorporation for a Non Profit	8/23/2009
Q: Is there required verbage regarding the adoption and signing of the articles of incorporation for a ... A: Your issue is controlled by state law and states may differ somewhat with how they would treat such ...
1023 filed late?	8/23/2009
Q: Our nonprofit was established in October 2008, and we received a $6,000 initial donation. In ... A: Correct in reference to the form 1023. If you have some other issues that were mentioned in the ...
1023 filed late?	8/23/2009
Q: Our nonprofit was established in October 2008, and we received a $6,000 initial donation. In ... A: The retroactive rules have no monetary consideration. Even if you grossed over one million dollars ...
1023 filed late?	8/23/2009
Q: Our nonprofit was established in October 2008, and we received a $6,000 initial donation. In ... A: See IRS Publication 557 "Tax Exempt Status for Your Organization" www.irs.gov/pub/irs-pdf/p557.pdf ...
990 EZ	8/23/2009
Q: Mechanic, Thanks for all of your work on this forum. I am beginning a non-profit that expects ... A: Tax-exempt organizations (other than Private Foundations which need file form 990-PF) with annual ...
Art show sales at a non-profit location	8/23/2009
Q: I sometimes display paintings for sale at locations such as churches and museums with groups of ... A: As for you, there is not any issue as to whether the seller is a nonprofit or for-profit ...
501(c)(3)	8/22/2009
Q: I am a board member of a 501(c)(3) organization that is chartered to promote theatrical arts within ... A: Your committee, which uses the school district EIN, would be considered by the IRS as simply a part ...
501(c)(3)	8/22/2009
Q: I am a board member of a 501(c)(3) organization that is chartered to promote theatrical arts within ... A: You wrote that your organization uses the EIN of the school district for collections and payments ...
Class Reunion Donations	8/22/2009
Q: I read your reply concerning obtaining a Federal EIN number for Class Reunion Funds, but I am still ... A: It appears that your purposes are social and, therefore, your entity would not qualify as a ...
501(c)(3) - Severance Payments	8/21/2009
Q: In two previous answers, 10/15/2008 and 05/22/2009,you state "It is against IRS regulations for a ... A: No, the Code of Federal regulations in Title 26 (Internal Revenue Code) does not have anything ...
Open board meetings California	8/21/2009
Q: At a meeting last night there was some disagreement as to whether the 501(c)3 nonprofit organization ... A: Open Meetings Laws in Different States and usually called "Sunshine Laws". Generally 501(c)(3) ...
501(c)(3) - Severance Payments	8/21/2009
Q: In two previous answers, 10/15/2008 and 05/22/2009,you state "It is against IRS regulations for a ... A: I believe that you cut my sentences off. I don't believe that I ever stated that "It is against IRS ...
Purpose of the Non-Profit	8/21/2009
Q: A 501(c)3, incorporated in Nevada, has zero employees, zero Board of Directors, no By-Laws, and no ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
All-star cheerleading booster	8/21/2009
Q: We have an all-star cheerleading company that is not associated with a school. It is similar to a ... A: The booster club may be set up to help a group of youth with expenses of the cheerleading program. ...
All-star cheerleading booster	8/21/2009
Q: We have an all-star cheerleading company that is not associated with a school. It is similar to a ... A: The concept of reading rewards for work is what the IRS calls compensation. Any arrangement whereby ...
All-star cheerleading booster	8/21/2009
Q: We have an all-star cheerleading company that is not associated with a school. It is similar to a ... A: Yes, it is certainly legal to have more than one 501(c)(3) booster organization supporting the same ...
non profit	8/21/2009
Q: ISN'T IT AGAINST THE LAW TO SAY YOUR NON PROFIT WHEN YOUR NOT A: There are two types of laws in the United States, criminal and civil. I know of no state's criminal ...
reviving a public charity company	8/21/2009
Q: We obtained tax-exempt status from the IRS under 501(c)(3)for "International Society Against Dowry ... A: It appears from what you reported that the organization obtained an advance ruling determination ...
Sports over-payment	8/21/2009
Q: The coach on our team required fees with a suggested budget to cover 6 tournaments. We only played ... A: It depends upon the oral or written contract whether funds would be returned to parents. However, ...
Gymnastics Booster Club	8/21/2009
Q: Our Booster Club is a 501(c)3. When raising funds for the gymnastics team, is it legal to post funds ... A: No, such an operation would be what the IRS calls a cooperative. A cooperative is not qualified as ...
Nonprofit creation for homeowner relief...	8/21/2009
Q: I have an idea and need to know if and how it is possible to create a nonprofit organization that is ... A: Not generally, but if it is for the relief of the poor, instead of the relief of the others, then ...
Dog adoption complaint	8/21/2009
Q: I thought you might be able to give me some advise, here's my story: I found a adoptable pet (a ... A: As for finding the names of the members of the Board of Directors, if you give me your state I may ...
Teransfer of control of a 501(c)3	8/20/2009
Q: I have been working for a non-profit religious drama group that has 501(c)(3) status (at least, I am ... A: To look for organizations that have received determinations from the IRS that they are eligible to ...
meetings	8/20/2009
Q: In New York State, do non-profits need to announce board meeting in any particular time frame? A: The New York Not-for-Profit Corporation Law is at http://snipurl.com/nynpcl and specifically, § ...
Unrelated Business Income or Seperate Organization?	8/20/2009
Q: We are a 501 3 c organization in VA looking to start a for profit day care to generate funds to ... A: Nonprofits may invest in start-ups. However, as to your other question, there are choices to be ...
What type of 501 should I form	8/20/2009
Q: I would like to form a non-for-profit company. It's purpose is to make senior veterans aware of ... A: It appears that your organization would qualify as a 501(c)(3) organization. In order to have ...
Florida HOA	8/20/2009
Q: Our HOA is selling a tract of land it purchased from the county several years ago. Is it subject to ... A: I have in my profile that this free forum is only for relevant federal exempt issues of 501(c)(3) ...
dual role BOD and Officer- non-profit	8/20/2009
Q: In Texas it appears that members of BOD are not to be compensated except for things like travel ... A: http://law.justia.com/texas/codes/bo/002.00.000022.00.html are the Texas Code sections for ...
Gymnastics Booster Club 501(c)3	8/20/2009
Q: Mechanic, I recently became President of my daughter's gymnastics Booster club. Since I am new to ... A: It appears that you are running the 501(c)(3) organization more like a cooperative than a charitable ...
Changing from a 501(c)6 to a 501(c)3	8/19/2009
Q: Our community organization originally called itself a "Chamber of Commerce" and incorporated as a ... A: First you would get the Board to agree to the change (and any voting members, if applicable). Then ...
Undocumented persons as members of a Board	8/19/2009
Q: I would like to know if an undocumented person can legally assume the responsibility of becoming an ... A: The IRS holds certain individuals liable for any taxes due. For example see the "responsible ...
Undocumented persons as members of a Board	8/19/2009
Q: I would like to know if an undocumented person can legally assume the responsibility of becoming an ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Line of Credit Borrowing policy	8/19/2009
Q: Our non-profit organization has a Line of Credit with a local bank to use should there be delays in ... A: Most corporations would require two signers and specific Board approval for amounts over a certain ...
donating labor	8/19/2009
Q: Can a freelancer donate his/her product and write it off as a charitable gift? ANSWER: Your subject ... A: You are correct... it is a no-go. See IRS Publication 526 "Charitable Donations" ...
donating labor	8/19/2009
Q: Can a freelancer donate his/her product and write it off as a charitable gift? A: Your subject was "donating labor" but in your question you referred to a product. As to donations of ...
Non-profit leasing to a for-profit	8/19/2009
Q: I am volunteering for a non-profit org that is raising money to build a ship. The org isn't paying ... A: A conflict of interest is present whenever a director has a material personal interest in a ...
Non-profit leasing to a for-profit	8/18/2009
Q: I am volunteering for a non-profit org that is raising money to build a ship. The org isn't paying ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Member discounts - Support Exempt Purpose?	8/18/2009
Q: Does the fact that our members receive discounts further our exempt purposes? When we filed for ... A: I would be willing to work on your matter, but I would need to spend a substantial amount of time, ...
501(3)(c) Gift giving to members and board members.	8/18/2009
Q: I belong to a 501(3)(c) women's group in TN who's organizing purpose is "devoted to support and ... A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. As long as ...
Removing Entire Board of Directors of 501(c)3 corporation	8/17/2009
Q: I am a member of a non-profit 501(c)3 animal rescue shelter in Florida. Until recently, the Board ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Is it "income" if it all goes to the charity?	8/17/2009
Q: My 501(c)3 club operates a swimming pool, open to the public, and charges a fee to cover expenses. ... A: It appears that the public pool activity is one of the main activities of the 501(c)(3) organization ...
Does California state law require use of Robert' Rules or parliamentary procedure?	8/16/2009
Q: Mechanic, I know that some states on the East Coast have statutory provisions that require ... A: No, http://snipr.com/ay58c Starting at section 5002 is the California Nonprofit Corporation's law ...
HOA Rules for Disbanding	8/15/2009
Q: Where are the laws (by state) that a lay person can go to research information to disband an HOA? A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Unrelated Business Income	8/15/2009
Q: If I have unrelated business income into my 501(c)3 corporation, do I need to notify the IRS ... A: If there is unrelated business in the amount of $1000 or more, then return needs to be filed as ...
non-profit kept all monies raised rather than honoring their contract	8/15/2009
Q: My company recently hosted an event to benefit 2 non-profits. We ran every aspect of the event and ... A: If they breached a contract, as you stated, then that is a state law issue of breach of contract, ...
Travel Team-Tax Returns?	8/14/2009
Q: We are working on putting together an independent travel baseball team. All players will be under ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Fundraisnig and Volunteer time	8/14/2009
Q: The sports organization I coach in is claiming tax deductible status for donations thus I believe, ... A: What this appears to be is an organization that wants dues or tuition but is giving people the ...
Fundraisnig and Volunteer time	8/14/2009
Q: The sports organization I coach in is claiming tax deductible status for donations thus I believe, ... A: You are correct that they need both. The IRS may have a problem with a 501(c)(3) organization ...
Fundraisnig and Volunteer time	8/14/2009
Q: The sports organization I coach in is claiming tax deductible status for donations thus I believe, ... A: You wrote that "it must have 501(c)(3) status". It is not clear to me from that whether you are ...
High School Booster Club	8/13/2009
Q: Can a 501(c)corp set up as a high school booster club exist if all monies are soley controlled by ... A: Yes, a 501(c)(3) booster organization may be controlled by school district employees. Now, if there ...
Booster Club Fundraising	8/13/2009
Q: My daughter is on the pom squad for her middle school (we live in TN). There are 25 girls on the ... A: That tax law relates to only 501(c)(3) booster organizations. If you are, in fact, fundraising for ...
transfering a 501c from one state to another	8/13/2009
Q: I am the director of a small 501c3 in the called Uconnect Organization. We have been helping schools ... A: You will need to decide whether you want to dissolve the Nebraska corporation or keep it going and ...
HOA as a 501c3	8/13/2009
Q: Can a HOA in Missouri become a 501c3, or does it always have to be a 501c4? Our county grants as ... A: Homeowners Associations not eligible to be exempt under 501(c)(3) as they are for private benefit ...
VOL non-profit rescue squad, w-2?	8/12/2009
Q: can a non profit org that is a vol rescue squad give out 50 dollar girts cards for extra duties ... A: Yes. that is considered normal employment compensation. www.irs.gov/pub/irs-tege/eotopick99.pdf ...
treasurer non profit group	8/12/2009
Q: What are a few of the pitfalls of being a treasurer for a non profit group, and how does one protect ... A: Chapter 181 of Wisconsin Statutes "Nonstock Corporations" which is found at: http://bit.ly/owJe6 ...
treasurer non profit group	8/12/2009
Q: What are a few of the pitfalls of being a treasurer for a non profit group, and how does one protect ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Spending money	8/12/2009
Q: I was told that a non profit organization can not have a certain amount on money sitting in their ... A: I am assuming from what you wrote to me that the organization is not a private foundation (you can ...
Tax ID not for profit	8/12/2009
Q: What steps do I need to take to run a travel team that is not for profit? (We need sponsorships to ... A: I will assume that you are referring to youth sporting activities. In order to have donations ...
School booster club	8/12/2009
Q: We would like to start a booster club for our girls high school basketball team and have been told ... A: Generally, donors give up any authority over donated items and funds, unless they had a specific ...
School booster club	8/12/2009
Q: We would like to start a booster club for our girls high school basketball team and have been told ... A: It is a general rule of law that, even if someone sends a check to someone else, the recipient may ...
transfer of non profit funds	8/12/2009
Q: Is a non profit organization, in New Jersey, that does fund raising for individuals obligated to ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Trust for friend	8/12/2009
Q: Can one set up a non-profit or not for profit trust for a needy individual and avoid taxes? A friend ... A: Certainly a trust that is nonprofit may be established, but donations are not deductible. See IRS ...
Non-profit loans	8/12/2009
Q: Is it common for Non-profits to loan each other money? Example Soccer Association loans and or ... A: There will only be an issue of the new club is not granted 501(c)(3) organization status by the IRS. ...
ebay	8/11/2009
Q: To raise funds for our 501c3 organization, we're considering creating an eBay account to sell ... A: Correct. I am assuming by "Ebay sales" that you are not only referring to the sales but to all of ...
ebay	8/11/2009
Q: To raise funds for our 501c3 organization, we're considering creating an eBay account to sell ... A: See www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 "Tax on Unrelated Business Income of Exempt ...
501c3 and Bankruptcy	8/11/2009
Q: My nonprofit is considering filing bankruptcy, transferring to 501c3 to another entity of our ... A: It appears that you are referring to an organization that has received a determination letter from ...
501c3 and Bankruptcy	8/11/2009
Q: My nonprofit is considering filing bankruptcy, transferring to 501c3 to another entity of our ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Selling a 501 c 3	8/11/2009
Q: I operate a nonprofit organization. It has been in existence for nearly 10 years. I am considering ... A: There are no shareholders or owners of a 501(c)(3) organization. Therefore, a transfer of control ...
Non Profits forming an LLC	8/10/2009
Q: We are a 501 C 3 and we have been awarded grants to rent, rehab and rent to low income people. We ... A: You may want to form an LLC but you would then need to make sure that all of the members of the LLC ...
When may President vote?	8/10/2009
Q: Re: a nonprofit, public benefit corporation located in California, is the Presdient allowed to vote ... A: http://snipr.com/ay58c Starting at section 5002 is the California Nonprofit Corporation's law and ...
501c3 funds	8/10/2009
Q: My daughter is on a competitive cheer team that has a booster club. You are not required to join but ... A: If they are youth in sport they may receive grants for their sporting activities. But see ...
501c3 funds	8/10/2009
Q: My daughter is on a competitive cheer team that has a booster club. You are not required to join but ... A: No. Funds should not be granted by preference to members of the 501(c)(3) booster organization. ...
forms to set up a 501c3	8/10/2009
Q: I am a beginner with all of this and want to set up a 501c3 so that I can raise money so that kids ... A: If you are organized and operating as a 501(c)(3) organization should be, and your gross income is ...
forms to set up a 501c3	8/10/2009
Q: I am a beginner with all of this and want to set up a 501c3 so that I can raise money so that kids ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Use of Church premises for for-profit activity.	8/7/2009
Q: Our church has 501c3 status. A member has requested the use of some of the rooms to run a private, ... A: Yes, a 501(c)(3) organization should have a valid, charitable, educational or religious reason to ...
Crime Stopper Rewards	8/7/2009
Q: I am working with a Crime Stoppers organization (501c(3)) that provides cash awards for tips ... A: the 501(c)(3) organization does not need to file a 1099 ---Start of Excerpt-- Fees paid to ...
Qualified Tuition Reduction as Pre-tax Deductions	8/7/2009
Q: I have done research on IRC Sec. 117(d) on Qualified Tuition Reduction and have found only that the ... A: Send me a copy of the attachment mentioned on that page 6 ---Start of Excerpt-- Because the BJE is ...
Donor financed internal sale	8/7/2009
Q: A church denomination wishes to sell one of its donor supported radio stations, to a newly created ... A: It appears that the buyer is a 501(c)(3) organization that has received a determination letter from ...
money raised	8/5/2009
Q: As a member of the ladies auxiliary of a volenteer fire company can the fireman request all of the ... A: You would need to inform me whether the ladies auxiliary is the same or different entity as the ...
Nonprofit Law	8/5/2009
Q: I have been reading all your responses to various "booster club" compliance and I still have 1 ... A: A 501(c)(3) organization may certainly refund moneys that parents paid for their child's account, ...
Laws governing Non Profit/Voluntary Org's	8/4/2009
Q: Where would I find a web site/sites which would discribe the laws/rules these above organizations ... A: Open Meetings Laws in Different States and usually called "Sunshine Laws". Generally 501(c)(3) ...
Local chapter EIN for National umbrella	8/4/2009
Q: Our National organization is a 501 (C)(3) and we currently have subsidiary's that hold their own EIN ... A: It appears that the national wants to have all income come into their accounts and all expenses come ...
Alcoholics Anonymous (Sub)Committee	8/4/2009
Q: I wish to help the local AA Hospitals and Institutions Committee incorporate as a Not for Profit and ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
501(c) 4 paying real eastate taxes	8/4/2009
Q: I was wondering if my organization has a 501(c)4 statues are we exempt from paying local real estate ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
proceeds from sale of real estate of non profit corp.	8/4/2009
Q: Is the net profit from the proceeds of the sale of real estate of a non profit corporation (swim ... A: You would need to review your articles of incorporation and bylaws. See the IRS general information ...
Admission vs. Love Offering	8/4/2009
Q: The chaplains in our small church are hosting a family movie showing as a fund raiser for their ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
proceeds from sale of real estate of non profit corp.	8/4/2009
Q: Is the net profit from the proceeds of the sale of real estate of a non profit corporation (swim ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Alcoholics Anonymous (Sub)Committee	8/3/2009
Q: I wish to help the local AA Hospitals and Institutions Committee incorporate as a Not for Profit and ... A: To save money for you, as it appears that you don't have expectations of receiving donations from ...
Donations for non-profit	8/3/2009
Q: If I have a donor who gives $10,000 to my non profit 501(c)3 and for this gift he receives a trip ... A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf especially on page 8 ...
Donations for non-profit	8/3/2009
Q: If I have a donor who gives $10,000 to my non profit 501(c)3 and for this gift he receives a trip ... A: See the IRS Publication "Charitable Donations --- Substantiation and Disclosure Requirements" ...
Conflict of Interest between Gym Owner and Non-Profit	8/3/2009
Q: Our gym owner is setting up a non-profit organization herself where she sets the budget and appoints ... A: If you are referring to a 501(c)(3) booster organization, she may have a problem getting IRS ...
gas card	8/2/2009
Q: I want to hold a raffle for a gas card at a local flea market.? A: I am assuming you represent a 501(c)(3) organization as I have in my profile that this free forum is ...
asset disposal for non profit	8/2/2009
Q: Harvey Mechanic Attorney At Law On 2-26-09 you answered a question concerning 501.c.3 ... A: http://law.justia.com/newjersey/codes/4f17/4f17.html is New Jersey's Nonprofit Corporation Law and I ...
Real Estate Purchase	8/2/2009
Q: What are the laws surrounding purchasing a home through a 501C corporation....if the home is to be ... A: It appears that the title of the house will be in your name (not the name of the 501(c)(3) ...
Real Estate Purchase	8/2/2009
Q: What are the laws surrounding purchasing a home through a 501C corporation....if the home is to be ... A: I don't understand what you are referring to. Are you talking about a real estate purchase by a ...
Termination of nonprofit	8/1/2009
Q: Are the Chairs of a nonprofit allowed to dissolve a nonprofit without Board approval? Over time new ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
501 (c)(3)	7/31/2009
Q: If you were ask to explain what the left and right limits would be on a 501(c)(3) and a 501(c)(6) as ... A: Tax law does not have any "left" or "right" limits. Either an organization is qualified as a ...
Can funds earned in one club be used for another club?	7/31/2009
Q: For a whole year I was a very active member at a gym where we had a Booster Club. At the end of the ... A: The IRS has written in a memo on page 2, "A section 501(c)(3) organization may make grants to ...
Board OFFICERS	7/31/2009
Q: Can the president of a California nonprofit also serve as the treasure A: http://snipr.com/ay58c Starting at section 5002 is the California Nonprofit Corporation's law and ...
Non Profit Member Dues/Umbrella 501(c)(3)	7/31/2009
Q: We are in the Organizational phase of establishing a non profit organization for our Competitive ... A: See IRS Publication 557 "Tax Exempt Status for Your Organization" www.irs.gov/pub/irs-pdf/p557.pdf ...
Non Profit Member Dues/Umbrella 501(c)(3)	7/31/2009
Q: We are in the Organizational phase of establishing a non profit organization for our Competitive ... A: As a general rule, for future consideration with the IRS federal tax exempt ruling, you would ...
Non Profit Member Dues/Umbrella 501(c)(3)	7/30/2009
Q: We are in the Organizational phase of establishing a non profit organization for our Competitive ... A: The collecting of dues does not jeopardize your ability to gain or maintain 501(c)(3) organization ...
Gifting to Both 501(c)(3) and Other Organizations	7/30/2009
Q: I am trying to start an organization that serves as a fundraiser that allows individuals to pool ... A: Your organization will be treated like what the IRS calls a community foundation. ...
Gifting to Both 501(c)(3) and Other Organizations	7/30/2009
Q: I am trying to start an organization that serves as a fundraiser that allows individuals to pool ... A: It depends how your organization is going to raise funds. If the donors are getting something in ...
Concession sales for 501(c)(3) organization	7/30/2009
Q: We are an athletic booster club who has filed 1023 and received favorable determination. Our ... A: See www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 "Tax on Unrelated Business Income of Exempt ...
Payments from a non-profit service group	7/30/2009
Q: I am an officer of a non-profit service organization and have just been elected as their treasurer. ... A: Both they and you have regular employee tax reporting responsibilities. See ...
reimbursement	7/30/2009
Q: The initial dues were 250.00 each to join and then they did numerous fundraisers to keep money in ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
501	7/30/2009
Q: My son is on a gymnastics team and the team wants to start a booster club, non profit with a 501 and ... A: No, the IRS does not want to grant 501(c)(3) organization status (the type that allows donors to get ...
IRS forms required for 501(c)(3)	7/29/2009
Q: I am a board member for a kids wrestling club. Our organization is a 501(c)(3) status. I am ... A: Unrelated businesses are activities that are outside of your kids wrestling activities, for example, ...
church rental	7/29/2009
Q: I am trying to help out our very small, growing church to find a bigger facility. What are the ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Tax Receipts 501(c)3	7/29/2009
Q: We are a non-profit 501(c)(3) who has several donors who give a few times per year in various ... A: Your organization certainly may contract with the donor to bind your organization to give a receipt ...
IRS forms required for 501(c)(3)	7/29/2009
Q: I am a board member for a kids wrestling club. Our organization is a 501(c)(3) status. I am ... A: Tax-exempt organizations (other than Private Foundations which need file form 990-PF) with annual ...
Membership Dues	7/29/2009
Q: I'm starting a Parents Club for my son's gymnastics team. If we require dues in order to receive ... A: Requiring dues make the organization a cooperative, not a charitable organization. It might qualify ...
501c reimburse for gas	7/28/2009
Q: can a 501c reimburse for gas? I'd like to cover the entire amount a volunteer spends doing volunteer ... A: Yes as long as the volunteer is not an independent contractor. ...
Non-Profit Fraud	7/28/2009
Q: I live next door to a 501(c)3. I have watched fraud going on for 8 years. The non-profit is an old ... A: Complaints could go to your State's Attorney General's Office as that office generally oversees ...
Lottery	7/28/2009
Q: If I have a winning lottery ticket and give it to at 501c3 organization, would the organization have ... A: If you assign the lottery ticket to a 501(c)(3) organization it will not need to pay any federal ...
Bringing an overseas charity under US code	7/28/2009
Q: We have a 'virtual office', are Aust govt recognized/registered but I live here in the States. Is it ... A: See www.irs.gov/irm/part7/ch10s06.html#d0e93499 "Foreign organizations that meet the requirements ...
Boosters Club	7/28/2009
Q: Our Karate School parent would like to start a boosters club for tournaments, and other events that ... A: http://snipurl.com/boosterinf is my summary of IRS regulations relating to 501(c)(3) booster ...
Restrictions placed by NP sports org on its members	7/28/2009
Q: There is a local sports organization (non profit) in the San Fran bay area that wants to pass a law ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Restrictions placed by NP sports org on its members	7/27/2009
Q: There is a local sports organization (non profit) in the San Fran bay area that wants to pass a law ... A: It will depend upon whether that sports organization receives substantial governments benefits, such ...
Discrimination in Donations	7/27/2009
Q: Can a publicly traded company refuse to donate money to any group or organization they choose? For ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
youth sports accounts	7/27/2009
Q: I have coached a youth soccer team for a number of years. We had a team account which used the tax ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Sole Board Member Resigning	7/27/2009
Q: If a board member resigns and he or she is the only officer left can he or she do this and leave the ... A: http://snipr.com/ay58c Starting at section 5002 is the California Nonprofit Corporation's law and ...
Sole Board Member Resigning	7/27/2009
Q: If a board member resigns and he or she is the only officer left can he or she do this and leave the ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Board member makes a profit on a fund raiser	7/26/2009
Q: We are a small Christian school. A board member donated $5,000.00 to buy a food booth at the local ... A: A conflict of interest is present whenever a director has a material personal interest in a ...
a non-profit that has no income	7/25/2009
Q: We have been a ministry for 7 months and receive no money in donations we provide information and ... A: You will need to give the IRS a proposed budget. There is no more probational periods. Most ...
legal operations of gymnastic booster club	7/24/2009
Q: Our gym has recently hired a new coach and with that coach came most of the team from the previous ... A: I have updated my one page summary of IRS regulations relating directly to booster organizations ...
Little League Refunds follow up	7/24/2009
Q: Are the parents considered donors? With donated money and paid parent fees in the same account, ... A: First we need to clarify that a board member has no authority himself. Second, as I explained ...
501c3 bidding for work	7/23/2009
Q: Does a 501c3 agency risk its non profit status if it bids for work againts private sector agencies ... A: It appears that you are referring to work that is part of your approved charitable, educational or ...
little league fundraising - lottery	7/23/2009
Q: We are in the state of Colorado. I have an 11 year old football team that is trying to raise money ... A: For federal rules see: www.irs.gov/pub/irs-pdf/p3079.pdf is an IRS Publication "Gaming Publication ...
Charitable Organization Funds Uses	7/23/2009
Q: We belong to an established 501(c)(3) athletic organization. I have been unable to find an IRS ... A: See also: www.irs.gov/pub/irs-pdf/p535.pdf "Business Expenses" on page 3, under "What Can I Deduct" ...
Quorums	7/22/2009
Q: What is the minimum number of eligible voting members required to form a quorum in a 501(c)(3) ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
donations of 5013c	7/22/2009
Q: Can a 5013c organization donate to another non profit charity without losing its status? Also, ... A: The IRS has written in a memo on page 2, "A section 501(c)(3) organization may make grants to ...
Voting rights	7/22/2009
Q: A little league puts up for consumption a copy of their constitution on a website for a day then ... A: You can obtain copies of organizational documents from the State(s) where the organization is ...
Voting rights	7/22/2009
Q: A little league puts up for consumption a copy of their constitution on a website for a day then ... A: Well if you are afraid to ask for earlier documents I don't know how we can continue with this ...
Voting rights	7/22/2009
Q: A little league puts up for consumption a copy of their constitution on a website for a day then ... A: First, if there was no quorum, then there can not be a valid meeting. Second, if the league was ...
Food for Funds - Non-profit fundraising?	7/22/2009
Q: We are a youth sports organization with a 501(c)3 status. Some of our parents work Food for Funds ... A: I don't know why you came to the conclusion tht the funds that the youth sports organization obtains ...
501c3 Donations	7/21/2009
Q: I work at an environmental consulting firm that is attempting to become a non-profit. The IRS is ... A: Yes, but note that if someone does not want to give a suggested donation you would still need to ...
Benevolence Fund & Staff	7/21/2009
Q: If our church benevolence fund provides financial support to a member of the church staff or a ... A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. As long as ...
benefits to moving assets to 501(c)(3)	7/21/2009
Q: My client is a 501(c)(3)- They are actively trying to purchase nonperforming assets (REO & NPL) from ... A: A bargain sale of property to a qualified organization (a sale or exchange for less than the ...
Lions Club wants to change from 501c4 to 501c3	7/21/2009
Q: Our Lions Club owns 80 acre park and meeting house. We gross about 60k/year. We want to change ... A: You would need to make your operation charitable, educational or religious within the meaning of the ...
Designated donations	7/21/2009
Q: A 501(c)(3) athletic booster club at a high school wants to know if they can accept donations from ... A: ---Start of Excerpt-- Inherent in the concept of a charitable gift is the notion that the gift must ...
Changing to a non profit	7/21/2009
Q: Is it easy changing the status from being for profit to non profit? A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
allocating fundraising monies	7/21/2009
Q: Our local mom's group is a 501c3 non-profit organization. During our annual fundraiser we state we ... A: The IRS has written in a memo on page 2, "A section 501(c)(3) organization may make grants to ...
Non-profit PTA donation to for-profit school.	7/21/2009
Q: Trying to help a Parent Teacher Association ("PTA") President out with a couple of questions. I ... A: I am assuming that the PTA is a public charity. It appears that there is too much private benefit, ...
Non-profit budget	7/20/2009
Q: Can a non-profit with hold budget information from its members. I sit on the BOD of a non-profit and ... A: There is no federal law that requires nonprofits to keep its budget private. In fact, if a ...
Expenses associate with a 501 (c)(3)	7/20/2009
Q: I am interested in creating a Festival where the net proceeds are donated to Charity. Accordingly, I ... A: Section 502 of the Internal Revenue Code reads, in relevant part, "An organization operated for the ...
Protecting our liability	7/19/2009
Q: I was told that appending "a Nevada non profit" to the name of our charity would protect the Board ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
student accounts	7/19/2009
Q: Fundraising revenues for a 501c3 Band Booster group should go to the general fund of the Boosters. ... A: Many booster organizations are not in compliance and the use of "credits" is simply another way to ...
501 c3 charities	7/19/2009
Q: When a charity is the beneficiary of a life insurance policy and wishes to sell its interest is a ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
booster clubs incorporated or not?	7/17/2009
Q: What are the qualifications for a booster club to be truly incorporated? If the club does not tax ... A: An organization may be incorporated as a nonprofit with the State and not have yet an EIN (Federal ...
Non-Profit rules of Order	7/17/2009
Q: Is it mandatory that the organization's by-laws state the the rules of order to be used ? A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
K of C 501c8	7/17/2009
Q: Our Knights of Columbus council in South Dakota was forced to sell our council home to the city to ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Volunteer Stipends and taxes	7/17/2009
Q: I was wondering if you pay a regular stipend to volunteer if the organization will need to provide ... A: As the IRS writes at: www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf on page 72-73 (takes a while ...
Non-Receipted Reimbursement	7/17/2009
Q: I took a business trip to the country of Bosnia in Europe where getting receipts proved difficult. ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Name Change	7/17/2009
Q: About a month ago, I filed the articles of incorporation with the State of California and ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Concept ownership	7/17/2009
Q: My question is: If I build a non-profit company from the ground up, with my own concepts and ... A: You can certainly have private property that you do not donate to the nonprofit. However, you would ...
Booster Club	7/17/2009
Q: I have been reading your posts on non profit distribution for gymnastic booster clubs. I think I ... A: You are correct that a 501(c)(3) booster organization may not require any work or "participation" in ...
Time to elect to be a For Profit or Not-For-Profit	7/16/2009
Q: I'm considering a documentary (“Doc”) project and a feature film about the same subject. Docs ... A: There is not any provision. Only when an entity is both organized and operating as a nonprofit will ...
Time to elect to be a For Profit or Not-For-Profit	7/16/2009
Q: I'm considering a documentary (“Doc”) project and a feature film about the same subject. Docs ... A: Donations to an organization that is a for-profit will not result in deductions even if later the ...
501(c)(3) and selling land	7/16/2009
Q: Can a 501(c)(3) organization that promotes conservation and oversees the preservation of a national ... A: Unless the 501(c)(3) organization signed a contract that binds them to keep the property or not to ...
additional compensation	7/16/2009
Q: Hypothetical scenario: a 501c3 corporation formed to support a college wants to supplement the ... A: Sorry, but whether the organization is solely to fund the President or only uses part of its funds ...
additional compensation	7/16/2009
Q: Hypothetical scenario: a 501c3 corporation formed to support a college wants to supplement the ... A: I don't know why you made the legal conclusion that a 501(c)(3) organization set up to fund the ...
Conduits	7/16/2009
Q: If a 501-C3 non-profit group wires money to our non-profit 501-C3 group with the purpose of our ... A: From page 2 of www.irs.gov/pub/irs-wd/0504031.pdf "A section 501(c)(3) organization will not ...
non profit organization funds a "for profit" school	7/15/2009
Q: How is a "for profit" ballet school scrutinized by the IRS when it is listed as "the official ... A: The term "official school" has no specific tax implications as it is vague. However, it the ...
Sale of donated vehicle	7/15/2009
Q: I work for a small 501(c)3 non-profit charity. In 2007 a vehicle was donated to our organization. We ... A: For information on vehicle donations, see IRS Publication 4302, A Charity’s Guide to Vehicle ...
when do nonprofit vendors need to submit W-9 forms?	7/15/2009
Q: I have worked at the same nonprofit organization for the past 8 years, and over that time, out ... A: You are correct about not needing W-9s for less than $600 annually paid to a person. See ...
gifts to teachers	7/15/2009
Q: Our band booster organization has a tradition of giving cash Christmas gifts to the band director ... A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. As long as ...
filing income tax	7/15/2009
Q: If you are volunteering as a long-term missionary with a non-profit in the states to do work at a ... A: The funds are pass-throughed the nonprofit and are not deductible by the persons giving the funds. ...
501(c)(3) and city employees	7/14/2009
Q: Can a city employee serve on a board of directors for a 501(c)(3) corporation created by the city? A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
building funds	7/14/2009
Q: I read your response on 6/2/09 regarding designated funds. Do the same rules apply to building ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
non-profit question	7/14/2009
Q: who is allowed to see financial statements of non profit clubs? do the clubs have to give you a ... A: Members may have rights as enumerated in the articles of incorporation and bylaws. Otherwise, if ...
gifts to teachers	7/14/2009
Q: Our band booster organization has a tradition of giving cash Christmas gifts to the band director ... A: A 501(c)(3) organization is supposed to not use its funds except for its exempt purposes. Now $300 ...
income from contracts	7/14/2009
Q: Does income from proprietary contract testing of materials for commercial companies violate ... A: It does not require termination but the IRS could, as sometimes they have terminated with 15% of ...
Gymnastics Booster Club	7/14/2009
Q: I have just taken over as the treasurer of my daughters gymnastic booster club and I have some ... A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to collect funds to go ...
church tax laws	7/14/2009
Q: What is the history of the tax law that prohibit or forbids a church to tell their members on how or ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
booster clubs and scholarships	7/14/2009
Q: I own a competitive all star cheer gym. We want to set up a booster club that will award ... A: I wonder how you know that you will be President, as the IRS generally requires 501(c)(3) ...
booster clubs and scholarships	7/14/2009
Q: I own a competitive all star cheer gym. We want to set up a booster club that will award ... A: Also see Rev. Rul 56-403 http://ftp.irs.gov/pub/irs-tege/rr56-403.pdf ---Start of Excerpt-- The fact ...
501(c)3 charity refund policy	7/13/2009
Q: I used my credit card to charge a donation to a local 501(c)3 charity. Two days later, I realized I ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
501(c)7 - Unrelated Business Income	7/13/2009
Q: Our club is a 501(c)7 organization putting on race events for our members. (www.rmvr.com if you ... A: It depends if they are getting 2% value of donation or are otherwise getting certain publication. ...
Spending of funds...	7/13/2009
Q: I am a member of a local Ski Patrol which is considered not for profit. We hold an annual fund ... A: Work for benefits is allowed by taxable as employment earnings. See ...
Non-profit Subsidiary	7/13/2009
Q: Can a 501(c)3 corporation have 501(c)3 subsidiaries? A: Yes, if you accept the definition of subsidiary as "subsidiary company: a company that is completely ...
small nonprofit affiliation with larger nonprofit	7/13/2009
Q: What are the pros and cons of the following scenario? A school-district-specific education ... A: The term "affiliate" is so vague as to be useless. You would need to inform me whether the ...
filing income tax	7/13/2009
Q: If you are volunteering as a long-term missionary with a non-profit in the states to do work at a ... A: There are at least two issues here. But I have a few questions that I would need answered before I ...
Wages of non profit	7/13/2009
Q: I am starting a non profit and I was wondering how do the CEO actually get paid. Do they take a ... A: Generally the definition of nonprofit precludes people from sharing profits and that would mean that ...
lease space to Nonprofit	7/13/2009
Q: I am a nonprofit looking to lease space. I was wondering if a property owner can gift space and if ... A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf especially on page 8 ...
Volunteering for a non profit	7/12/2009
Q: A non profit college radio station has banned all non student volunteers from working at the ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Non-profit name change	7/12/2009
Q: I wrote to the IRS, non-profit section, and asked what impact, if any, a name change would have on ... A: First your organization would amend its articles of incorporation or association with the state. ...
Reliance on Texas Law Governing Unincorporated Nonprofit Associations for 501c3 Dissolution Clause	7/12/2009
Q: I am attempting to secure 501(c)(3) exemption for a tenant association organized as a nonprofit ... A: No, such wording will not be sufficient. In order to be granted IRS statsus as a 501(c)(3) ...
501-c non profit	7/11/2009
Q: can a employee of a non profit sell the non profit co items from his/her for profit company? Things ... A: The IRS has published at www.irs.gov/irm/part7/ch10s05.html#d0e92076 ---Start of Excerpt-- Where an ...
FFA Ag. Boosters rules	7/11/2009
Q: My kids show animals in FFA. When they enrolled in this club they signed a contract stating they ... A: Ag. Boosters should not prevent a FFA member from collecting funds for her own FFA activity, as long ...
income from contracts	7/11/2009
Q: Does income from proprietary contract testing of materials for commercial companies violate ... A: See www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 "Tax on Unrelated Business Income of Exempt ...
IRS Filing	7/10/2009
Q: I just joined the board of my archery club. We collect membership fees and charge for a monthly ... A: I still need to know, as in your articles of incorporation, subsection of IRC 501(c) under which the ...
IRS Filing	7/10/2009
Q: I just joined the board of my archery club. We collect membership fees and charge for a monthly ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
E-mail acknowledgements	7/10/2009
Q: Is an e-mailed acknolwedgement to a donor an acceptable document for that donor's Charitable ... A: Email is fine. See the IRS Publication "Charitable Donations --- Substantiation and Disclosure ...
founders	7/10/2009
Q: can nonprofit founders work in government? or would founding a nonprofit proclude someone from ... A: I noticed you had listed Italy as your country. I have in my profile that this free forum is only ...
necessity to file 1023	7/10/2009
Q: I help a "Friends of the Library" group. This is a corporation that solicits donations and ... A: See instructions to Application for Exemption www.irs.gov/pub/irs-pdf/i1023.pdf in the right column ...
income from contracts	7/10/2009
Q: Does income from proprietary contract testing of materials for commercial companies violate ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Contribution Credit For Donated Hours	7/9/2009
Q: A man volunteers to work for a 501c3 for 10-20 hours per week. Can the 501c3 give that man ... A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf at the top of page 5 ...
For-profits working for/with non-profits?	7/9/2009
Q: What are the restrictions on for-profit groups working for or with non-profit groups? For example, ... A: Many 501(c)(3) organizations contract for services and I am assuming you are referring to a ...
Can our 501 C donate to a non 501 C	7/9/2009
Q: Recently, a very good organization gave us $10,000 to transfer to a non 501 c who does great animal ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
FFA Ag. Boosters rules	7/9/2009
Q: My kids show animals in FFA. When they enrolled in this club they signed a contract stating they ... A: First, it appears the the FFA- Ag. Booster contract coordination may be illegal if one of them is a ...
gifts to individuals	7/9/2009
Q: As a Board member,I have recommended that a 501c3 organization I belong to adopt a formal policy ... A: A gift to a 501(c)(3) organization is deductible unless there is some exception such as those listed ...
Buying equipment	7/9/2009
Q: Can a 501c3 buy equipment for a gymnastics booster club through assessments if the equipment is ... A: It appears that you do not understand the mission of a 501(c)(3) booster organization. Youth do not ...
gifts to individuals	7/9/2009
Q: As a Board member,I have recommended that a 501c3 organization I belong to adopt a formal policy ... A: The Internal Revenue Code at section 102(a) provides that generally gifts are not income. As long as ...
501c(3) to foreign	7/9/2009
Q: Can 501c(3) charitable foundation make donations and support foreign religious and/or charitable ... A: See www.irs.gov/pub/irs-wd/0504031.pdf for details about international grants to and international ...
Buying equipment	7/9/2009
Q: Can a 501c3 buy equipment for a gymnastics booster club through assessments if the equipment is ... A: If the booster organization is a 501(c)(3) organization and it is going to own the equipment and ...
non-profit	7/8/2009
Q: A non-profit organization failed to file taxes for several years. When someone asked to see their ... A: Whatever is on the form 990 is all that normally needs to be revealed. ...
non-profit "projects"	7/8/2009
Q: A non-profit organization failed to file taxes for several years. When someone asked to see their ... A: A project has no responsibility, but the other 501(c)(3) organization needs to comply with tax ...
501(c)3 or 503(c)3	7/8/2009
Q: Our organization (an education foundation) is confused about the designations for 501(c)3 and ... A: First I will need to know, from your determination letter from the IRS that the organization is ...
nonprofit vs 501c3	7/8/2009
Q: We have a not-for-profit sports organization. We generate about $10-15,000/year in income based on ... A: As your gross income is over $5000 annually you are required to file form 1023 (you would need to ...
professional fund raiser	7/8/2009
Q: I work for a 501(c)(3) non-profit and they are thinking about paying someone to be a professional ... A: Usually you would need to file for 1099 annually. See www.irs.gov/pub/irs-pdf/i1099msc.pdf which is ...
Dance Team Booster Club	7/8/2009
Q: Can a Booster Club only be designated for the varsity dance team. All funds, party, events, ... A: The school may not conspire with the 501(c)(3) booster organization to require membership or sales ...
What is required to be in the Bylaws?	7/7/2009
Q: I am writing up a draft bylaws for our organization. I have found many samples on the internet. Some ... A: http://snipr.com/cb5zq is the Nevada Nonprofit Corporation Code and your bylaws cannot contradict ...
Fundraiser	7/7/2009
Q: My client has been approached by another "group" who is putting together a lunch and bike ... A: First we need to know in what states the raffle tickets will be sold. For State rules where you will ...
salary	7/7/2009
Q: I realize this may seem like a simple question; however, we receive Federal Funds and from what I ... A: See www.com.ohio.gov/laws/docs/laws_MinimumWage.pdf for minimum wage amounts. ...
Refund of Band Fees paid to a 501c3 account	7/7/2009
Q: I am the treasurer for a high school marching band booster club. We operate as a 501c3 charity. I ... A: Whatever the family gives may be returned to them but not the amounts from other persons (who ...
What is required to be in the Bylaws?	7/7/2009
Q: I am writing up a draft bylaws for our organization. I have found many samples on the internet. Some ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated. ...
Conflict of Interest policy	7/6/2009
Q: I copied IRS conflict of interest policy sample as a basis for our organization's policy. I want to ... A: Yes, it is certainly valid. It appears all that you changed was the fact that, instead of the ...
restriction amount of money earned 501(c)3	7/6/2009
Q: Is it true that a 501(c)3 cannot take in more than $25,000 a year in donations? Also, how long can a ... A: www.tax.state.ny.us/pdf/2001/fillin/corp/ct247_601_fill_in.pdf is required for all 501(c)(3) ...
Membership Age	7/6/2009
Q: Our organization proveds services to a leadership youth group (ages 15-20) as well as other programs ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Nonprofit borrowing	7/6/2009
Q: If a board member of a 501c3 nonprofit loans the organization a significant amount, say $100,000 at ... A: A conflict of interest is present whenever a director has a material personal interest in a ...
501c3 violation	7/6/2009
Q: If there is evidence of a 501c3 organization being in violation, what is the procedure and to whom ... A: Complaints could go to your State's Attorney General's Office as that office generally oversees ...
salary	7/6/2009
Q: I realize this may seem like a simple question; however, we receive Federal Funds and from what I ... A: I don't know what you mean by "and was asked on 06/29/2009". I have reviewed the questions on that ...
Is a non-profit allowed to generate income?	7/6/2009
Q: We are a non-profit youth club, comprised of multiple sports and 5,000 family members. We have been ... A: See www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 "Tax on Unrelated Business Income of Exempt ...
501(c)(3)	7/6/2009
Q: Can a non-profit 501c3 organization grant a large sum of money to an member. A soccer association ... A: If the salary is no more than a reasonable amount it may be permitted. The IRS does not allow ...
501(c)(3)	7/6/2009
Q: Can a non-profit 501c3 organization grant a large sum of money to an member. A soccer association ... A: The organization trying to obtain 501(c)(3) organization status would need to reveal the salary ...
Setting up a Donation Fund for Severly Injured Person	7/5/2009
Q: I had no idea where to direct this question, so please feel free to redirect me if you are not the ... A: 1. You may set up an account but As to charitable deductions: See IRS Publication 526 "Charitable ...
restriction amount of money earned 501(c)3	7/5/2009
Q: Is it true that a 501(c)3 cannot take in more than $25,000 a year in donations? Also, how long can a ... A: I am assuming from what you wrote to me that the organization is not a private foundation (you can ...
501 c 3 or c 7	7/5/2009
Q: Our all terrain vehicle (ATV) club is registered with the State of NH Treasury Department as an ... A: If you don't have a TIN it appears that the funds are going into a bank account of another entity ...
501(c)(3)	7/5/2009
Q: Can a non-profit 501c3 organization grant a large sum of money to an member. A soccer association ... A: Salaries may be for 501(c)(3) organization purposes. It all depends upon the particular facts of ...
501(c)(3)	7/5/2009
Q: Can a non-profit 501c3 organization grant a large sum of money to an member. A soccer association ... A: First you asked about a 501(c)(3) organization granting money to a members. Your follow-up refers ...
How can an individual receive a scholarship from a 501(c)(3) private foundation?	7/4/2009
Q: One of my previous employers, who has a private 501(c)(3) foundation has offered to help me fund my ... A: The main issue is that the IRS would treat the grant as if he gave to you directly and you already ...
501(c)(3)	7/4/2009
Q: Can a non-profit 501c3 organization grant a large sum of money to an member. A soccer association ... A: If the activities are for youth sporting, then such grants are allowed. From page 2 of ...
non profit gallery in warehouse = tax deduction	7/3/2009
Q: I want to start a non-profit art gallery. The key is i would like to house this gallery in a ... A: No. See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf especially on ...
use of non profit funds	7/2/2009
Q: My daughter plays for a softball team, that the "team organization" is non profit, but they are ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
can a community foundation hold an LLC interest without generating UBIT	7/2/2009
Q: I have interest in an LLC which I would like to donate to a 501(C)3, however this would cause ... A: Passive investments (no active work required by the nonprofit) are not UBIT. See ...
can a community foundation hold an LLC interest without generating UBIT	7/2/2009
Q: I have interest in an LLC which I would like to donate to a 501(C)3, however this would cause ... A: First I would need to know if the LLC interest comes with any management responsibility, like a ...
Creating a separate legal entity	7/2/2009
Q: The 501(c)3 organization that runs our athletic program operates with 3 distinct divisions. Each ... A: It appears that you are referring to an organization that would be not running any athletic programs ...
501c3 Related Parties	7/2/2009
Q: Is it legal for a 501c3 hospice to contract with the president of the board's daughter for physical ... A: A conflict of interest is present whenever a director has a material personal interest in a ...
Acknowledgement Letter	7/1/2009
Q: We recently hosted a fundraising event that included purchasing a ticket, a live and silent auction ... A: See the IRS Publication "Charitable Donations --- Substantiation and Disclosure Requirements" ...
501(c)3 employee expense	7/1/2009
Q: Are employee's allowed to purchase alcohol on their expense report while attending a Goodwill ... A: There are no special rules regarding expense for food or drink allowed for employees of 501(c)(3) ...
Gymnastics Booster Club	7/1/2009
Q: Is the team booster club violating IRS code for exempt organizations by requiring members to sell or ... A: No. Division on the basis of fundraising is no allowed for 501(c)(3) organizations. If the majority ...
little league do i apply for a 501 exemption	7/1/2009
Q: i applied for a federal id number must i apply for a 501 exemption we have 2 fundrasiers a year and ... A: The foundation may make their own requirement, for example, that they require that grantees already ...
Conflict of interest/Private benefit	6/30/2009
Q: I fear that the actions of the board members of my skating club may be jeopardizing our 510(c)3 ... A: 1. See www.irs.gov/pub/irs-tege/eotopica93.pdf starting on pages 11 "Private Facility Owners" which ...
Gymnastics Booster Club	6/30/2009
Q: Is the team booster club violating IRS code for exempt organizations by requiring members to sell or ... A: Yes, 501(c)(3) organization may not require membership or fundraising as a condition for grants. ...
Board meetings for nonprofit	6/30/2009
Q: New president of the board wants to hold closed meetings. This is a nonprofit for an athletic ... A: You did not mention the articles of incorporation, a copy of which you can obtain from the State and ...
Board meetings for nonprofit	6/30/2009
Q: New president of the board wants to hold closed meetings. This is a nonprofit for an athletic ... A: You would need to review articles of incorporation and bylaws to find the rights of persons who pay ...
Booster Club donations to an LLC	6/30/2009
Q: Can my sports league (an LLC) accept cash donations from a booster club (a non-profit)? If so, how ... A: It appears that your sports league is not a tax-exempt organization. Therefore, funds given to your ...
Change in 501(c)(3) by-laws without members consent	6/29/2009
Q: I am a member of a religious organization (a church) which is recognized as a 501(c)(3) organization ... A: You can see the Ohio Nonprofit Corporation law http://law.justia.com/ohio/codes/orc/jd_1702-729.html ...
501c3 vs 501c4	6/29/2009
Q: When our organization applied for federal non profit status we were given 501 C4 status. When we ... A: It appears that the State of Florida was addressing another issue, because, before the IRS granted ...
Change in 501(c)(3) by-laws without members consent	6/29/2009
Q: I am a member of a religious organization (a church) which is recognized as a 501(c)(3) organization ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Non-profit boards	6/29/2009
Q: Is it necessary for the names and addresses of board members of a non-profit organization to be ... A: The federal requirement is in the IRS disclosure rules. If a nonprofit has received IRS exemption ...
Dance Team Booster Club	6/29/2009
Q: Can a Booster Club only be designated for the varsity dance team. All funds, party, events, ... A: The IRS used Booster Club B as an example of an organization that would be granted 501(c)(3) ...
School district not claiming booster club	6/29/2009
Q: Mr. Mechanic, I wrote you recently about the school district, when asked for financial information ... A: Certainly now the facts are different from what you described earlier, as the funds going into the ...
Dance Team Booster Club	6/29/2009
Q: Can a Booster Club only be designated for the varsity dance team. All funds, party, events, ... A: Certainly the IRS allows 501(c)(3) booster organizations for a particular varsity team. Note, ...
non-profit organization	6/29/2009
Q: How does one go about dissolving an inactive non-profit board. A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
bylaws set up	6/29/2009
Q: compliant set up. Do you have a link to a "good" set of bylaws for a non profit booster club that ... A: I generally give my clients standard bylaws for 501(c)(3) organizations and then, as to the issues ...
Personal Profit by board member	6/29/2009
Q: Mechanic, 6/29/09 Over the past few years one board member of our non-profit group has ... A: First, for such a scheme, the Board of Directors, without him voting, would need to approve the ...
Nonprofit's tax excempt	6/29/2009
Q: If we have a Non profit corporation in TX Managed by members, can I apply for 501(c)(3) federal tax ... A: First you would need to inform me whether the organization has proper articles of organization. In ...
Booster Club - Combined	6/29/2009
Q: Is it possible for two differenent organizations: Dance/ Orchestra use the same Publication 78 but ... A: Unless two organizations are affiliated in the manner that the IRS calls "group exemption", two ...
Granting Funds as Directed by a Donor	6/29/2009
Q: What a resource. My organization, which places professional arts educators in school programs, has ... A: The IRS has written in a memo on page 2 of www.irs.gov/pub/irs-wd/0504031.pdf ---Start of Excerpt-- ...
Summer swim team	6/29/2009
Q: I have been reading info on the IRS website and it seems that our summer swim team (which receives ... A: If the team is composed of almost all youth under the age of 18 the organization may be approved as ...
website and Yahoo group	6/28/2009
Q: I have a Website that is set up if people want to make donations for animals... i also have Yahoo ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
gymnastics booster club	6/28/2009
Q: My daughter has been in competitive gymnastics for 16 years. She has been in different gyms over ... A: http://snipurl.com/boosterinf is my summary of IRS regulations relating to 501(c)(3) booster ...
Scholarship Fund	6/27/2009
Q: My school district has established a college scholarship fund funded through a teacher/district ... A: A government instrumentality is never considered a private foundation. I only sent you the IRS ...
gymnastics booster club - aging out?	6/27/2009
Q: My daughter has been in competitive gymnastics for 16 years. She has been in different gyms over ... A: Unless your daughter started really young, she would be over 18 years of age. Let me know if almost ...
Spending Funds Received by 501c3	6/26/2009
Q: We collected funds to send a Girl Scout Troop to Washington. Now there are questions as to how we ... A: The spending of 501(c)(3) organizations is supposed to be directly for the exempt activities not at ...
Summer swim team	6/26/2009
Q: I have been reading info on the IRS website and it seems that our summer swim team (which receives ... A: You mentioned "fund raisers". By "fund-raisers" it appears that you are referring to sales. Unless ...
memorial contribution	6/26/2009
Q: My client has a 501c3 and recently an individual in town died and the family asked that in lieu of ... A: They appear to be normal donations (without the donors expecting anything tangible in return). ...
borrowing money	6/26/2009
Q: Is it ok to borrow money from your local church, as a loan to be paid back to the church, not from ... A: In the United States acts are legal unless there is a specific prohibition for the act. ...
land purchase	6/26/2009
Q: i'm trying to determine the pros and cons (i.e. taxes, K/tort liablity, control, etc) of buying land ... A: Well, you would need to look at all of the factors. I have in my profile that this free forum is ...
borrowing money	6/26/2009
Q: Is it ok to borrow money from your local church, as a loan to be paid back to the church, not from ... A: The past donations are not relevant as to loans. However, the church is permitted to refund past ...
sale of equipment to staff	6/26/2009
Q: Can a nonprofit sell excess equipment, like a computer or vehicle, to a staff member, without ... A: The Board of Directors should decide on the matter as to the price and, assuming the staff members ...
Dues to a 501(c)(3)	6/25/2009
Q: I'm wondering what percentage of a certified 501(c)(3)'s annual revenue can come from dues? An ... A: A 501(c)(3) organization may be a public charity even though it receives most or all of its funds ...
S-corp fundraising	6/25/2009
Q: my sons karate dojo is rebuilding and we the parents would like to do some fundraising to help ... A: Any group may sell items but it will be taxable and you should not make any solicitation for ...
Booster Clubs	6/25/2009
Q: We have found booster clubs that have their own Tax ID numbers using the name of one of our schools ... A: Some states, such as New York require permission from a charity to collect funds for that charity. ...
S-corp fundraising	6/25/2009
Q: my sons karate dojo is rebuilding and we the parents would like to do some fundraising to help ... A: Unless a 501(c)(3) organization engages in the sales activities, the net income would definitely be ...
Board Member Compensation	6/25/2009
Q: I want to set up a nonprofit in Missouri. I want to be on the Board of Directors, but I also want ... A: Yes, you can certainly receive a reasonable compensation and the IRS would look at all of your ...
Power of a Non-Profit's President vs. Board	6/25/2009
Q: Does a President of a non-profit board have the power to override the votes of the non-profit's ... A: http://snipr.com/ay58c Starting at section 5002 is the California Nonprofit Corporation's law and ...
Board Member Compensation	6/25/2009
Q: I want to set up a nonprofit in Missouri. I want to be on the Board of Directors, but I also want ... A: Your board, without you voting, would need to decide upon compensation that is no more than a ...
determining values for in-kind donations & services	6/25/2009
Q: I was wondering if there is a cart or list that is available that will list the value for in-kind ... A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf at the top of page 5 ...
Power of a Non-Profit's President vs. Board	6/25/2009
Q: Does a President of a non-profit board have the power to override the votes of the non-profit's ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
rental income by churches	6/25/2009
Q: Our church rents individual rooms on a weekly basis for a a yoga class, an exercise class, and a ... A: See page 9 of www.irs.gov/pub/irs-pdf/p598.pdf wherein we see "Rents from real property... are ...
Scholarship Fund	6/25/2009
Q: My school district has established a college scholarship fund funded through a teacher/district ... A: Generally donations to a public school district are deductible if the donation is going solely for ...
Booster Clubs	6/24/2009
Q: We have found booster clubs that have their own Tax ID numbers using the name of one of our schools ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Forming a non-profit subsidiary of a for profit corp.	6/24/2009
Q: My friend and I would like to open a for prfot event planning business to lend our services to any ... A: It is redundant to use the term "non-profit" with "charity". Yes, a charity may donate some of its ...
Forming a non-profit subsidiary of a for profit corp.	6/24/2009
Q: My friend and I would like to open a for prfot event planning business to lend our services to any ... A: No. The IRS does not grant 501(c)(3) organization status to organizations that only raise funds, ...
High School Dance Booster Club	6/24/2009
Q: We were involved in a booster club for the past three years. WE assumed the public school was ... A: First you would look to the state law. You don't need to concern yourself about what is typical. ...
Hotel tax	6/24/2009
Q: We are a fastptch softball organization that was granted our 501(c)(3). We have stayed at several ... A: You can see in the standard IRS exemption determination letter "Since you are not a private ...
High School Dance Booster Club	6/24/2009
Q: We were involved in a booster club for the past three years. WE assumed the public school was ... A: It is not likely the the organization is subject to the Freedom of Informaton Act. As for your state ...
Announcing support from donors	6/24/2009
Q: We are a nonprofit podcast. We carry school board meetings, hold interviews with local leaders and ... A: Regarding Corporate Sponsorships - Donor Recognition Adverts www.irs.gov/pub/irs-tege/eotopico94.pdf ...
501(c)(3) loans	6/24/2009
Q: Can a 501(c)(3) soccer association make a loan to a member club that is not a 501(c)(3) or even if ... A: If the loan is inadequately secured and that is given to an insider then the IRS treats the proceeds ...
Raising Funds for Medical Care for our Family	6/24/2009
Q: We are seeking funders to help us afford out-of-pocket treatments and care for our family of 4. We ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
High School Dance Booster Club	6/24/2009
Q: We were involved in a booster club for the past three years. WE assumed the public school was ... A: If the booster organization has not filed a certificate of incorporation with the state it is an ...
Raising Funds for Medical Care for our Family	6/24/2009
Q: We are seeking funders to help us afford out-of-pocket treatments and care for our family of 4. We ... A: Yes, as long as you are not selling anything or providing services for the funds. Please note that ...
501(c)3 assessment policies and fundraising	6/24/2009
Q: Sir, First I would like to congratulate you on your great site! My questions are as follows: 1. If ... A: You need advance approval from the IRS for your method of giving scholarships if you want assurance ...
Outside Authority over a 501(c)(3)	6/23/2009
Q: Can an entity (such as a school or church) that receives support and/or funds from an independent ... A: No, not unless there is a contract that the independent 501(c)(3) organization has with the school ...
501c3s and for profit work	6/23/2009
Q: First off forgive me if the answer to this question is common knowledge I have been searching and ... A: See www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 "Tax on Unrelated Business Income of Exempt ...
LLC to non profit	6/23/2009
Q: I set up an LLC (teaching drama classes) about a year ago and have decided that I would like to ... A: Disband and start over. The IRS grants exemption to LLCs that are properly organized and operated. ...
parents association	6/23/2009
Q: I am the director of a parents association that was created to support the teams of a local, private ... A: The Board may decide, whenever it wants to decide, to fund some teams at a higher level with more ...
501(c)3 assessment policies and fundraising	6/23/2009
Q: Sir, First I would like to congratulate you on your great site! My questions are as follows: 1. If ... A: 1. No. For then the donor would not be able to take a deduction. See IRS Publication 526 "Charitable ...
Requesting an audit	6/23/2009
Q: My daughter attends a Christian School and is on the junior high cheerleading squad. The school ... A: You can certainly ask for an audit but then the school does not have to comply with your request. It ...
public records	6/23/2009
Q: I live in NY are 5013c forms that were filed pubic records can i go to city hall and req. a copy? A: Any forms that have been filed by 501(c)(3) organizations are public records (except for list of ...
Fundraising	6/23/2009
Q: Our High School Booster Club is (501 c) in Michigan. This is a non-supported team by the school ... A: For-profits and non-profits have tax id numbers. The numbers themselves do not evidence any tax ...
Fundraising	6/22/2009
Q: Our High School Booster Club is (501 c) in Michigan. This is a non-supported team by the school ... A: 1. No. Donations be made to individuals on a team may not be taken as tax deduction. See IRS ...
Fundraising	6/22/2009
Q: Our High School Booster Club is (501 c) in Michigan. This is a non-supported team by the school ... A: I am assuming that yours is a 501(c)(3) organization. http://snipurl.com/boosterinf is my summary ...
Mileage Reimbursement for Volunteer	6/22/2009
Q: Harvey, My church has a volunteer who's asking about getting reimbursed for mileage. I read on one ... A: Only if the volunteer has, for the same trade or business, an office in her home. From IRS ...
Marching band booster fund raising	6/22/2009
Q: Our school has a marching band booster organization (501c3). Board members are elected and serve ... A: Fundraising of a 501(c)(3) booster organization should not be stated as "mandatory". ...
Non profit director	6/22/2009
Q: Can the director of a Non profit organization also be the director of a for profit organization? ... A: I am assuming that you are referring to a director of a nonprofit organization who is also a ...
Equal Distribution	6/22/2009
Q: I understand that a booster club that applies and operates as a non-profit organization must benefit ... A: The 501(c)(3) organization may certainly set up separate accounts for each individual but most ...
Equal Distribution	6/22/2009
Q: I understand that a booster club that applies and operates as a non-profit organization must benefit ... A: What you are referring to is similar to the situation where a university would set up a fund for a ...
Nonprofit funds for City permit appeals	6/22/2009
Q: I'm a board member (treasurer) of a neighborhood association here in Bellingham, Washington and two ... A: If your 501(c)(3) organization is established to help the community it is possible that funding ...
Volunteer Non-participation fines	6/22/2009
Q: I am a volunteer coordinator for a swim team in Ohio and have trouble getting parents to fulfill ... A: You can certainly have fees but then the people working would not be volunteers as you are giving ...
tax deductibility	6/21/2009
Q: If a for-profit entity or an individual rents their building to a non-profit organization, can they ... A: No. See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf especially on ...
Non-profit personal refund	6/21/2009
Q: I am a Committee Chair for a Boy Scouts of America Troop, in Portland, Oregon. I have searched all ... A: Certainly when a 501(c)(3) organization has sales, all funds go to the organization and only refunds ...
Board of Directors Remuneration for 501(c)5	6/21/2009
Q: We operate a 501(c)5 nonprofit canal irrigation company and are interested in compensating the board ... A: The IRS writes generally about (c)(5) organizations at: www.irs.gov/irm/part7/ch10s08.html They ...
501c3 expired	6/19/2009
Q: What happens when the 501(c)(3) expires? A: The 501(c)(3) organization status no longer has an expiration date. However, there are certain ...
Booster club for 501c3	6/18/2009
Q: 1. Membership is mandatory in booster club to compete. 2. All expenses to compete, banquet, gym ... A: Sorry that I did not ask first whether the gym is a for-profit or 501(c)(3) organization. Even if ...
Booster club for 501c3	6/18/2009
Q: 1. Membership is mandatory in booster club to compete. 2. All expenses to compete, banquet, gym ... A: 1. Membership may not be mandatory for a 501(c)(3) organization. The gym may not conspire with the ...
Memorial Donation	6/18/2009
Q: Can a 501c3 Fire Company make memorial donations to a church? We recently became c3, and it has ... A: Yes. The IRS has written in a memo on page 2, "A section 501(c)(3) organization may make grants to ...
Team Donations/Fundraising	6/18/2009
Q: This question concerns a large non-profit youth sports league with several hundred teams. ... A: It appears from what you wrote that each team is an unincorporated association and does not have a ...
Opening a bank account	6/18/2009
Q: We have registered as a non profit in Nevada and are paying for a registered agent there. We would ... A: I don't know why you incorporated in Nevada, as usually a small start-up nonprofit would only need ...
Proxy Vote with Non Profit Org in NY State	6/18/2009
Q: Does New York State law prohibit proxy voting by board members of Non Profit Organization? The ... A: See the following report at www.churchlawtoday.com/private/library/cltr/c0290341.htm ... the ...
Team Donations/Fundraising	6/17/2009
Q: This question concerns a large non-profit youth sports league with several hundred teams. ... A: As to designations, I would first need to know how each team is organized. In other words, is each ...
guidance on filing 501 (c)(3)	6/17/2009
Q: Can you help me with some do's and don'ts when filing an application to become a 501(c)(3) ... A: I have written about individual accounts in my summary. http://snipurl.com/boosterinf is my summary ...
non-profit conflcts of interest	6/17/2009
Q: If you are the President of a non-profit organization (Baseball Association) can you be hired and ... A: Yes, salaries are allowed to officers to work for 501(c)(3) organizations as long as that salary is ...
non-profit church raffles	6/17/2009
Q: when a raffle is held by our non-profit church, at what amount does a 1099 need to be filed for the ... A: See www.irs.gov/pub/irs-tege/notice_1340.pdf which is an IRS Publication "Tax-Exempt Organizations ...
Cheer Booster fund distribution	6/17/2009
Q: Here are the basics. Competitive all star cheer squad, all youth (18 and under), nothing ... A: http://snipurl.com/boosterinf is my summary of IRS regulations relating to 501(c)(3) booster ...
Cheer Booster fund distribution	6/17/2009
Q: Here are the basics. Competitive all star cheer squad, all youth (18 and under), nothing ... A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to collect funds to go ...
school taxes	6/17/2009
Q: I tried looking this up on my own and wasn't successful and thought you might be the best match to ... A: Public schools are exempt from federal taxes, including federal income taxes, but may be subject to ...
How to change from 501(c)4 to 501(c)3?	6/17/2009
Q: So that our PTA can start giving receipts for tax deductible donations, we'd like to change from a ... A: Your articles of incorporation and bylaws would need to be amended to have the required IRS clauses ...
Qestion about Nonprofit	6/16/2009
Q: We would like to open Nonprofit organization in USA but work mostly in Europe helping people in ... A: There are many of such organizations. The IRS has a policy that it will not grant exemption under ...
Dual Sponsorship?	6/16/2009
Q: Can a documentary film project obtain more than one fiscal sponsor? Does the IRS say anything about ... A: Many projects receive grants from more than one organization. There are no IRS cases that I know of ...
Dual Sponsorship?	6/16/2009
Q: Can a documentary film project obtain more than one fiscal sponsor? Does the IRS say anything about ... A: Two or more is fine. Your project certainly can apply to an IRS approved 501(c)(3) organization for ...
Capital gains	6/16/2009
Q: Our American Legion Post has decided to put our facility up for sale do to high operating costs. We ... A: See www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 "Tax on Unrelated Business Income of Exempt ...
how to get on the straight and narrow	6/16/2009
Q: Our booster club works concessions as a fundraiser. We do not wear any clothing or have any signs ... A: Well, that would be the first step.... obtaining a copy of the 1023 application and supporting ...
how to get on the straight and narrow	6/16/2009
Q: Our booster club works concessions as a fundraiser. We do not wear any clothing or have any signs ... A: Your organization's exemption determination was based upon the presentation in the 1023 application. ...
receiving tips while fundraising	6/16/2009
Q: Our booster club works concessions as a fundraiser. We do not wear any clothing or have any signs ... A: First, you should understand that contract labor is generally taxable under the federal income tax ...
Dual Sponsorship?	6/16/2009
Q: Can a documentary film project obtain more than one fiscal sponsor? Does the IRS say anything about ... A: The IRS only uses the phrase one time as we can see by a Google search: site:irs.gov "fiscal ...
Coaches and Boosters	6/16/2009
Q: I am a head basketball coach and teacher at a public high school in California. Am I able to start ... A: You can certainly start the organization but the IRS is concerned about booster clubs that are ...
voting via regular email board in California	6/16/2009
Q: I sit on several non profit boards in CA. It often comes up if we can conduct voting via regular ... A: No. http://bit.ly/eNLTS Starting at section 5002 is the California Nonprofit Corporation's law and ...
charity golf tournament for private family	6/15/2009
Q: I am throwing a one-time only charity golf tournament to raise money for my cousin's family. ... A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf on page 6 where ...
certification letter	6/15/2009
Q: How do we obtain a copy of our certification letter as a 501 (c) (3) non-profit organization? A: An officer of your organization should call the IRS Exempt Organizations unit in Cincinnati at ...
Bylaws Caifornia non profit public benefit	6/15/2009
Q: 2 part1. Is it illegal in California for a Non profit Public benfit corporation to operate ... A: 1. Yes. 2. There is no penalty from the State. The usual treatment would be only a court order, ...
nonprofit church laws on handling the money	6/15/2009
Q: we are a nonprofit baptist church,we would like to no how IRS wants us to work pouting the offering ... A: I do not know of any new law. If the church wants the government tax benefits, it is required to ...
501c3 or Social organization?	6/14/2009
Q: A group of parents in our community want to set up a Grad Night for the 2010 senior class at our ... A: No. The party is not educational, charitable or religious and even if there were some component of ...
501(c)(3) Athletic Booster Club Do's/Don'ts	6/14/2009
Q: My son's baseball booster club has a 501(c)(3)status. They are using funds raised to pay out ... A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
Social Service 501 (c) (3)	6/13/2009
Q: Is a social services non-profit in violation of its 501 (c) (3) status if it places informal ... A: An organization makes a certain presentation to the IRS in its exemption application and, if it ...
Nonprofit membership organization change	6/13/2009
Q: Is there any impact on the charitable status of a 501(c)3 if a membership organization changes to a ... A: Tax-exempt organizations (other than Private Foundations which need file form 990-PF) with annual ...
Nonprofit membership organization change	6/13/2009
Q: Is there any impact on the charitable status of a 501(c)3 if a membership organization changes to a ... A: Not directly. However, the IRS could take that fact into consideration for certain types of ...
Booster club	6/12/2009
Q: Could you tell me if a booster club of a for profit competitive cheer team can be a 501(c)(3) ... A: http://snipurl.com/boosterinf is my summary of IRS regulations relating to 501(c)(3) booster ...
W9 and 501(c)3	6/12/2009
Q: We are a non-profit 501(c)3 charity (youth center) with tax exempt status for donations. We also ... A: The W9 form is not for that purpose. www.irs.gov/pub/irs-pdf/fw9.pdf What you send to the donors ...
Booster club	6/12/2009
Q: Could you tell me if a booster club of a for profit competitive cheer team can be a 501(c)(3) ... A: No. If the team itself is working for-profit (not amateurs) then there could be no 501(c)(3) ...
email or eletronic votes	6/12/2009
Q: What are the pros and cons reguarding non profit Board members voteing by email or other electronic ... A: First we would need to see if your state law allows such email or electronic voting by Board ...
For Profit working under a non-profit	6/12/2009
Q: Can I create & operate a for-profit business under a non-profit organization (a church) ANSWER: See ... A: It appears that you want to open a for-profit child care facility and, to accomplish that, you would ...
For Profit working under a non-profit	6/11/2009
Q: Can I create & operate a for-profit business under a non-profit organization (a church) A: See www.irs.gov/pub/irs-pdf/p598.pdf IRS Publication 598 "Tax on Unrelated Business Income of Exempt ...
not a 501 filing 990	6/11/2009
Q: There is a group in town that has been claiming to be chartered as a non profit, and working on ... A: Complaints could go to your State's Attorney General's Office as that office generally oversees ...
mandatory audits and spending ratios	6/11/2009
Q: 1. Do you know of any mandatory auditing of not-for-profits? Audits not generated from 990 issues. ... A: The IRS has no requirements for nonprofits to have their own audits. The IRS audits some nonprofits ...
Are we in violation of our 501c3 status?	6/11/2009
Q: First off i am very impressed with this forum. It has opened my eyes to the world of 501c3 booster ... A: I believe that I answered your first question already. But, again, a 501(c)(3) organization is in ...
Non Profit vs Foundation	6/11/2009
Q: What are the differences between a Non Profit 501(c)(3) and a Foundation? I was planning to form a ... A: There is no legal significance to the word "Foundation" in reference to 501(c)(3) organizations as ...
Compliance	6/11/2009
Q: We are a 501c3 private foundation. Are there any IRS regs that stipulate a minimum amount of funds ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Are we in violation of our 501c3 status?	6/11/2009
Q: First off i am very impressed with this forum. It has opened my eyes to the world of 501c3 booster ... A: The denials you read were probably the ones that I have in my one page summary and both of the ...
Are we in violation of our 501c3 status?	6/11/2009
Q: First off i am very impressed with this forum. It has opened my eyes to the world of 501c3 booster ... A: All of the funds should go into the general fund, but then the Board (or CEO) may decide to fund ...
501c3 and international donations	6/10/2009
Q: I read some of your previous answers that said that US 501c3s can donate to overseas NGOs or ... A: The IRS has a policy that it will not grant exemption under §501(c)(3) for U.S. organizations that ...
Church Wants to Sell Land	6/9/2009
Q: Our church owns land that has no debt associated with it that we would like to sell. Would the ... A: Non-taxable. Capital gains taxes are part of federal income taxes, and, therefore, any organization ...
Non-Profit Sports Collecting Money	6/9/2009
Q: I recently applied for a scholarship through my son's football league and was denied. Another ... A: There is no federal law prohibiting non-profit sports teams to turn children away due to the ...
What if you are not 501(c)(3)?	6/9/2009
Q: Our gym's Parent Group is not a registered 501(c)(3) and according to all the guidelines I have read ... A: If you have sales or other business activities then you would need to use standard for-profit ...
Issuance of 1099 forms	6/8/2009
Q: Upon dissolving a 501(c)(3),does the IRS require that 1099 forms be sent to each non profit ... A: 1099s still would need to be sent to the recipients if required for organizations that were not ...
pop warner bank records	6/7/2009
Q: Are pop warner football bank statements public record if you are a member of the organization. I ... A: You would need to look to the articles of incorporation and bylaws and then see what rights you, as ...
pop warner bank records	6/6/2009
Q: Are pop warner football bank statements public record if you are a member of the organization. I ... A: You can certainly ask them for their financial records but they may not be obligated to give all of ...
501c3 compenstation regulations	6/6/2009
Q: First let me thank you for the wealth of knowledge your advice has provided me. I have read many of ... A: You would certainly then have regular employment tax issues such as withholding taxes and annual W-2 ...
Allocating money	6/6/2009
Q: I am a current member of a parent teacher group, we are a 501 c 3. Our school is being split in ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Non Profit Volunteer Appreciation Gifts	6/5/2009
Q: I am the head of baseball league. Every year our league acknowledges our outstanding volunteers with ... A: It appears that the people working may expect certain certificates for their work. See ...
Purchasing an existing 501c3	6/5/2009
Q: We are an animal rescue interested in purchasing an existing 501c3--we have found another animal ... A: No one owns a 501(c)(3) organization and, therefore, it is not possible to purchase one. However, ...
501 3 c and Political Activity	6/5/2009
Q: My name is Melissa Ann. Can you answer this question? We would like to file for 501 c 3 to help ... A: The exact phrase that you would need to have in your articles of incorporation is: ---Start of ...
donations	6/5/2009
Q: Can a California 501c3 nonprofit's directors or officers make monetary contributions to their own ... A: Certainly many of the really small 501(c)(3) organizations exist solely because of the donations of ...
Booster Club Funds ownership	6/5/2009
Q: Harvey - thanks for answering so many questions!! My wife is President of a gymnastics booster ... A: You are welcome, Scott, The IRS may have a problem with a 501(c)(3) organization allowing ...
allocating fundraising moneys	6/4/2009
Q: I am the treasurer of a 501 c 3 parent run booster club for my daughter's cheerleading club. We ... A: Yes, I don't see any good reason yet forward to me in your questions why all of them should not get ...
allocating fundraising moneys	6/4/2009
Q: I am the treasurer of a 501 c 3 parent run booster club for my daughter's cheerleading club. We ... A: Funds in 501(c)(3) boosters organizations do not need to be divided equally. For example ...
501(c)(3) branch	6/4/2009
Q: Wisconsin I would like to open an office in Michigan is that possible? A: It appears that you are referring to a nonprofit corporation that was incorporated in the State of ...
love offering / honoriums to members	6/4/2009
Q: Can the church give love offerings or honoriums to a member regularly without having to 1099 them? ... A: No matter what the church calls the money ("love offering" or "honorarium" it appears that they are ...
love offering / honoriums to members	6/4/2009
Q: Can the church give love offerings or honoriums to a member regularly without having to 1099 them? ... A: Key point: A church need not issue 1099 forms to benevolence recipients, since such distributions ...
Booster Club Travel Exp	6/4/2009
Q: We are a 501c3 booster club for our high school football team. Our coach always accompanies ... A: It is up to your Board to decide (or members, if they vote) whether they consider that assisting ...
501C3 and Special Considerations	6/3/2009
Q: My wife and I have a burden to donate a new alkalized, ionized water machine to our church. The cost ... A: The church may engage in that sales activity. But see www.irs.gov/pub/irs-pdf/p598.pdf IRS ...
Conflict of Interest	6/3/2009
Q: This is regarding a children's sports league. Recently, a person who was elected to the Board ... A: A conflict of interest is present whenever a director has a material personal interest in a ...
What states have the most favorable 501-c-3 rules & laws?	6/3/2009
Q: Would you know which states would have the most favorable laws governing their 501-c-3 organizations ... A: It depends upon several factors, such as where you have someone who is a registered agent (needs to ...
Can a 501-c-3 org benefit foreign interests only?	6/3/2009
Q: Want to start a new 501-c-3 org that will benefit foreign poor children to provide them access to ... A: A U.S. based 501(c)(3) organization does not need to benefit any U.S. based beneficiaries. The ...
Can a 501-c-3 org benefit foreign interests only?	6/3/2009
Q: Want to start a new 501-c-3 org that will benefit foreign poor children to provide them access to ... A: No. Funds may come solely from outside the United States. Even though you did not ask, please note ...
non-profit community center	6/3/2009
Q: I'm in the process of purchasing a church and turning it into a youth/community center...would this ... A: Neither status would be allowed if you are getting too much private benefit (from, for example the ...
Can approved minutes be changed?	6/3/2009
Q: I am the Secretary for a 501(c)(3). At our last meeting the Board agreed to increase employee ... A: I am confused because usually minutes are only approved by the Board at the next meeting, but you ...
non-profit 501C3 designated funds rule of law	6/2/2009
Q: What is the rule of law regarding designated funds on the books of a 501C3 church? We have recently ... A: First you need to find out if any contracts or other agreements in writing exist as to any donations ...
FOIA requests	6/2/2009
Q: Are non-profit corporations subject to FOIA if they receive federal funding either throuhg loans or ... A: No. The Federal Freedom of Information Act only to federal government agencies. ...
Not-for-profit Dance studio parent organization	6/2/2009
Q: We are starting a not-for-profit parent organization at a for-profit dance studio. I have read many ... A: No, the funds may not be distributed to individuals. The 501(c)(3) organization that is a booster ...
renting on a tax exempt property	6/2/2009
Q: Can a tax exempt arts organization rent their space to an independent theatre company who wants to ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Board Members	6/2/2009
Q: Can board members take money from fundraiser's? One of our board members in charge of fundraising ... A: A Board member may only take funds if the rest of the Board, by majority, (with him not voting) ...
Legal non-profit dissolution	5/28/2009
Q: My question is specifically concerning a non-profit organization that provides legal services. If ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
501 (c) 4	5/28/2009
Q: Harvey, As a 501(c)4, if we have excess money that we want to donate, is that money tax exempt? ... A: As long as your main activities are those normally of a 501(c)(4) organization, your organization ...
501(c)6 sub groups	5/28/2009
Q: We are a 501(c)6 world wide user group. We are starting to form sub groups (Regional chapters). ... A: What you are referring to is called by the IRS group exemption. Group Exemption is discussed ...
Can a foreigner register 501(c)(3) public charity?	5/28/2009
Q: We are 3 people (1 US Citizen + 2 foreign scientists) who want to register a science laboratory as ... A: 1. It appears that you want to have a California Nonprofit Public Benefit Corporation, but I would ...
501(c)(6) organization	5/28/2009
Q: As I understand it, there is no strict requirement that a business league file a 1024 (not in the ... A: IRS Code Section 501(a) reads, in toto: "An organization described in subsection (c) or (d) or ...
Not-for-profit Dance studio parent organization	5/28/2009
Q: We are starting a not-for-profit parent organization at a for-profit dance studio. I have read many ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
tax exempt status for future church	5/27/2009
Q: I am considering starting a Christian church with IRS 501(c)3 tax exemption status, but have read ... A: You are not correct that a church with 501(c)(3) organization status may not preach against abortion ...
Finding a specific fund	5/27/2009
Q: We are trying to find evidence a specific fund donors contributed to at our local non-profit ... A: I don't know why you are trying to find out the amount in a specific fund as, absent a contract, the ...
opening a sickle cell foundation in a new state.	5/27/2009
Q: I would like to know exactly the name of the forms that i need, to get the process started? A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
501(c)3 exemptions compelling reason	5/27/2009
Q: My organization wishes to file for an expedited request based upon the fact that a grant whose ... A: See instructions to Application for Exemption www.irs.gov/pub/irs-pdf/i1023.pdf on page 3 where the ...
filing Form 1023	5/27/2009
Q: Can we count our 27 months to file 1023 from our adoption of bylaws with provisions for officers & ... A: It appears that you are confirming that your organization is an unincorporated association and you ...
filing Form 1023	5/27/2009
Q: Can we count our 27 months to file 1023 from our adoption of bylaws with provisions for officers & ... A: See instructions to Application for Exemption www.irs.gov/pub/irs-pdf/i1023.pdf on page 4 ---Start ...
POA Proxy Voting	5/27/2009
Q: We have a small group of members in our TEXAS POA collecting one-year proxies. They come to ... A: I would like to add to my previous answer, as the Secretary, not the Chair would have the authority ...
POA Proxy Voting	5/27/2009
Q: We have a small group of members in our TEXAS POA collecting one-year proxies. They come to ... A: The Chair decides upon the validity of the proxies in accordance with the rules, as in the bylaws. ...
booster clubs	5/27/2009
Q: Can the athletic director at a high school tell the booster club how to spend money earned by the ... A: State law gives authority over the funds of a corporation (or even unincorporated association) to ...
Booster Club Conflict of Interest	5/26/2009
Q: If a booster club for a high school is not an independent entity from the school. IE it uses the ... A: If the booster organization is a part of a school, the school may have a Board of Directors, but the ...
501(c) regulations & harassment	5/26/2009
Q: I became a member of a non-profit organization a few years ago. It soon became clear that one ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Non-profit Christian School Fundraising	5/26/2009
Q: I coordinate the SCRIP program at our Christian school. We currently sell SCRIP with the profits ... A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to collect funds to go ...
501 (c) (3) non-profit softball fees/dues	5/26/2009
Q: My daughter is on a travel softball team that is part of a larger softball organization which is a ... A: Fees/dues may be deductible if paid to the 501(c)(3) organization. See IRS Publication 526 ...
Booster Club for a Public School Dance Team	5/25/2009
Q: Can a schools dance director make its members of the drill/dance team mandatory to work and sell ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
501(c)(3) for Cheer Squad	5/25/2009
Q: My daughter is on a cheer squad that is a for-profit business. Since they do not have a 501(c)(3) ... A: A for-profit business may have membership fees and give a member an option to pay the membership fee ...
NFP	5/24/2009
Q: Ar the NFP 501c3 tax returns available to the public online in NY? A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
non-profit building	5/24/2009
Q: I am currently looking at a building to have a retail store, but recently I am wondering if a ... A: There is not quick "yes" or "no" answer to your question. However, as you are specifically ...
Booster Club for a Public School Dance Team	5/24/2009
Q: Can a schools dance director make its members of the drill/dance team mandatory to work and sell ... A: For me to answer that question I would need to know if the booster organization is a 501(c)(3) ...
Gift to Pastor	5/23/2009
Q: Our pastor has lived in a church own parsonage for 35 years while serving the church. Is it possible ... A: It appears that you are asking whether a church may give real property to its pastor when he ...
supporting organization	5/23/2009
Q: We are a High School Band Booster organization directly supporting the school Band program. AS I ... A: To look for organizations that have received determinations from the IRS that they are eligible to ...
Nonprofit board vote via email - need language	5/22/2009
Q: We wish to modify the bylaws of our 501C3 organization to allow for a vote of the Board of Directors ... A: Your issues are controlled by state law and states may differ somewhat with how they would treat ...
Nonprofit business relationship	5/22/2009
Q: Can a 501(c)(3) that has a charitable and business relationship with a local restaurant / caterer ... A: No, that is not allowed unless the 501(c)(3) organization receives accounts for advertising revenue. ...
Umbrella Non Profit	5/22/2009
Q: I have noticed working with several church organizations, they have an umbrella community non-profit ... A: You are referring to what the IRS calls "group exemption" rules. Group Exemption is discussed ...
Atheletic Club/Fundraising	5/22/2009
Q: I my daughter is in a youth soccer club which is a 501(c) 3. We are holding a fundraiser; after the ... A: Sorry, but I should have used the term "of value except for intangible religious beneﬁts" as ...
Atheletic Club/Fundraising	5/22/2009
Q: I my daughter is in a youth soccer club which is a 501(c) 3. We are holding a fundraiser; after the ... A: Someone is not a volunteer if she expects something tangible in return for work. That discount is ...
Receipt for in-kind church donation	5/22/2009
Q: Our non-profit will be receiving transportation assistance from a church. What kind of receipt do ... A: The acknowledgment is required to for-profit companies as they want to take the donation off of ...
Band Booster gift cards to volunteers	5/22/2009
Q: Our band booster organization has gave $20 gift cards as thank yous to retiring board members, is ... A: Yes, it is would be a violation but, as the amount is relatively small (probably) in relation to ...
Non-Profit Organizations	5/22/2009
Q: Can a Non-Profit Organization have an interesting bearing checking and savings account? We are in a ... A: You mean "interest-bearing" accounts. Sure. There are no federal or state regulations prohibiting ...
non-profit	5/22/2009
Q: 1)when your non-profit is up an running for your salary workers there payroll checks comes from the ... A: For 501(c)(3) organizations salaries do not come generally from donations but from the general fund. ...
1099 for Crime Stoppers volunteer	5/21/2009
Q: I am a volunteer with Crime Stoppers, a 501(c)(3). They pay cash rewards for anonymous tips about ... A: See www.irs.gov/pub/irs-pdf/p535.pdf "Business Expenses" in the middle column of page 40 which has ...
Amended By-Laws	5/21/2009
Q: Does My non-profit organization have to send to the irs amended by-laws. We are in the process of ... A: The IRS would like you to do so. Your exemption application may not have included such purposes and ...
Receipt for in-kind church donation	5/21/2009
Q: Our non-profit will be receiving transportation assistance from a church. What kind of receipt do ... A: I am assuming that your nonprofit is a 501(c)(3) organization and not a private foundation. You can ...
setting up a scholarship that can be donated to by general public	5/21/2009
Q: I'm looking to set up a scholarship for a student or multiple students that alums can contribute to. ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Transfer of 501c3 corporation to california	5/20/2009
Q: If I am transferring a 501c3 from new york to california and changing the board of directors 100% is ... A: If you form a new corporation in California you would need to secure tax exemption for that ...
Benefits for Nonprofits in Commercial Real Estate	5/20/2009
Q: Are there any benefits for a nonprofit company to lease office space from a nonprofit landlord as ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Transfer of 501c3 corporation to california	5/20/2009
Q: If I am transferring a 501c3 from new york to california and changing the board of directors 100% is ... A: From what you wrote it appears that you are maintaining the New York corporation. The procedure for ...
Loss of tax exempt status ownership	5/19/2009
Q: After switching accountants and reviewing our records, we have been advised that our firm will ... A: What you appear to referring to is what the IRS calls revocation or voluntary loss of exempt ...
Forbidding Designated Giving	5/19/2009
Q: Someone at our church is trying to discourage the practice of designated giving (giving money ... A: Sorry, I misunderstood your first question, probably because it is not something even close to what ...
Forbidding Designated Giving	5/19/2009
Q: Someone at our church is trying to discourage the practice of designated giving (giving money ... A: There is no law forbidding designated giving. In fact, it is prevalent. See http://bit.ly/3lPY5 "The ...
Youth Sports Club	5/19/2009
Q: I have two questions related to a youth sports club that claims to be a non-profit entity in ... A: #1 If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with ...
501c3 Sharing	5/19/2009
Q: What are the repercussions, if any, of a 501c3 historical organization letting another local ... A: Ok, it appears that the start-up historical group is an unincorporated association. Donations are ...
Taxes at snack bar for a non profit.	5/18/2009
Q: I guess I lost the last question, here goes again. Our bingo group (senior citizens) sells hot ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Spending fund-raising money	5/18/2009
Q: I am the treasurer for a non-profit 501(c)3 orgainzation. The orgainzation is a youth sports club. ... A: The IRS rule for what nonprofits may spend money on is similar to the standard that the IRS uses ...
requirements for public support	5/18/2009
Q: I believe there is a 51 or 10 rule, that requires 501(c)(3) non-profits receive a percentage of ... A: You are referring to the IRS regulations relating to private foundation status and the public ...
Returning of a deposit from a church	5/18/2009
Q: I paid a deposit of $100.00 for two of my daughters to attend a missionary trip to Mexico. I paid ... A: We need to separate the discussion from any discussion of donations as this was not a donation. I ...
Autism Summer School Tuition	5/18/2009
Q: If a non-profit 501 (c) (3) summer school for children with autism has a family tuition for students ... A: No. See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf IRS 509 ...
non profit compensation	5/18/2009
Q: What are the ethical and legal issues of paying an Executive Director a direct percentage (such as ... A: I don't deal with ethical issues. I have in my profile that this free forum is only for relevant ...
Non-profit "appearance"	5/18/2009
Q: My daughter competes on a competitive gymnastics team that is privately-run. We pay monthly ... A: It appears that you are referring to an unincorporated association which has articles of ...
501c3 Sharing	5/18/2009
Q: What are the repercussions, if any, of a 501c3 historical organization letting another local ... A: I am assuming you mean that another corporation would be using the first's corporation's ...
parents want to buy out or have a work bond in a 501-c-3 org	5/17/2009
Q: I am on the board of a 501-c-3 sports organization. The question I have is whether or not we can ... A: What you are basically proposing is that the 501(c)(3) organization, which is not a booster ...
parents want to buy out or have a work bond in a 501-c-3 org	5/17/2009
Q: I am on the board of a 501-c-3 sports organization. The question I have is whether or not we can ... A: Your proposals are problematic. The IRS may have a problem with a 501(c)(3) organization allowing ...
Booster Club purchases	5/17/2009
Q: I am part of a soccer booster club that is not school related but privately operated tax exempt ... A: I am assuming from what you wrote to me that the organization is not a private foundation (you can ...
Fire Company Auxiliary	5/17/2009
Q: Can a volunteer fire company board of directors change the structure of their auxiliary that has ... A: Bylaws may only be changed by a vote of the voting members. You would need to review the articles ...
Booster chaperones on trip	5/17/2009
Q: Our booster organization is raising money to assist our band to go on a trip that is educational in ... A: Money may be used for parent chaperones as you stated that the trip requires parent chaperones. ...
High school basketball booster club	5/16/2009
Q: Where can I get information on how to start and run a booster club? Our high school coach wants me ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
501(c)(3) - board members	5/15/2009
Q: We have a 501(c)(3) organization in NY State and we have two employees - one reviews grant ... A: That is a common practice but, as I write to questioners who do not mention their state, the law ...
501(c)(3) - board members	5/15/2009
Q: We have a 501(c)(3) organization in NY State and we have two employees - one reviews grant ... A: Yes. Most small nonprofits have Board members who are also employees. You will not find any ...
nonprofit filings	5/15/2009
Q: 1. Should an Artcle of Incorporation be filed before form 1023? 2. Should I get a business license ... A: 1. Yes. That is a required enclosure with the form 1023 unless the organization has articles of ...
non profit	5/14/2009
Q: we are non profit soccer club our coach is board member. can he still get paid for his time spent ... A: Yes, but he would not vote when the Board considers his employment contract and salary. Generally, ...
Donation with restricted purpose	5/14/2009
Q: 501(c)(3) with mission to produce educational environmental films. Donor wishes to fund a film with ... A: You are referring to an issue that the IRS calls "Donor Control". See IRS Memo "Donor Control" at ...
taxes on non profit institutions	5/14/2009
Q: How much $ can I give to my church and religious university that won't be subject to taxation? A: There is no limitation to the amount that you can donate to a church or other 501(c)(3) ...
Nonprofit	5/14/2009
Q: If a humane society accepts contributions for a commemorative brick memorial which would allow a ... A: See the IRS Publication "Charitable Donations --- Substantiation and Disclosure Requirements" ...
gifts to directors and officers	5/14/2009
Q: Our organization has a history of "gifting" officers and others from the organization's bank ... A: You are correct. 26 C.F.R. 1.501(c)(3) http://snipr.com/9wxry prohibits "inurement". Inurement ...
Sunshine Law for 501(c)3 Board Meetings	5/14/2009
Q: My question is if the Sunshine Law applies to a non-profit board meeting in New York State. Must we ... A: Open Meetings Laws in Different States and usually called "Sunshine Laws". Generally 501(c)(3) ...
Non-profit booster club	5/14/2009
Q: I am the president of a non-profit booster club. We elected a board which expires April of each ... A: The articles of incorporation and bylaws would control unless there is some state law that states ...
501 c (3) allowed spending	5/13/2009
Q: We have a recovery club that would like to send some members on an overnight trip to Dr. Bobs house ... A: I can not see how funding a visit to a mansion that is visited by regular tourists would be a ...
Not for profit for sale	5/13/2009
Q: I live in New York City and am currently considering buying a non for profit organization. The ... A: The first issue is whether the organization has received a determination letter from the IRS that ...
Non-Profit Booster Club Formation	5/13/2009
Q: My son attends a for profit preschool. We (the parents) recently started a booster club for fund ... A: I will give you the regular rules for 501(c)(3) organization booster clubs. The 501(c)(3) ...
Reimbursement of expenses for amateur sports organization	5/12/2009
Q: Our local adult softball association recently received 501(c)(3) status. We are affiliated with a ... A: I am not familiar with any tax court rulings as to individual accounts or team fund-raising. You ...
Scholarship Donation	5/12/2009
Q: I will be giving out a scholarship to a student at a local high school. This is the first year I ... A: As long as you do not have a 501(c)(3) organization yourself, you would need to work with the local ...
501c3's finanical records	5/8/2009
Q: do 501c3's have to make their financial records available upon written request for a copy, ... A: 1. If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with ...
Non Profit Women's Membership Group Paying for Services	5/8/2009
Q: What are the laws/rules on paying for services to some Board Members when the majority of the ... A: The payment of services is allowed by the IRS for 501(c)(3) organizations as long as they do not pay ...
Booster Club Seeking Reimbursement	5/8/2009
Q: I am a member of a gymnastics booster club in which the for profit gym mandates membership and ... A: Your understanding is correct. It would be a conspiracy to evade federal taxation for the 501(c)(3) ...
co-mingling of funds	5/8/2009
Q: I was on the board of a youth theatre org. that claimed to be a 501c3 (although I never saw the ... A: Certainly you may have some liability as you were a Board member and you may not have acted in a ...
Legal to hold Charity Texas Holdem tourney	5/8/2009
Q: i was wondering if its a illegal to hold a Texas holdem tourney non-public on private property and a ... A: For federal rules see: www.irs.gov/pub/irs-pdf/p3079.pdf is an IRS Publication "Gaming Publication ...
Depreciation of Equipment in 990-EZ	5/8/2009
Q: I am filling out 990-EZ for my non-profit organization. Last year we purchased electronic equipment ... A: On pag 29 of the instructions to form 990 we see ---Start of Excerpt-- On line 8a, for each column, ...
Non-Profit Copymark vs. Trademark	5/7/2009
Q: I have a friend that is part of a non-profit motorcycle club that is interested in making sure that ... A: Logos may be registered as a trademark if that logo is used with the name of the motorcycle club and ...
Non-Profit Co Founder dies	5/7/2009
Q: If a non-profit 501( c) (3) co-founder dies, does the other founder report that to the irs? Will ... A: There is no IRS issue as to who is the founder of a 501(c)(3) organization. There is an issue as to ...
501(c)(3)	5/7/2009
Q: Can a group of citizens of a town create a 501(c)(3) for a college scholarship for the needy ... A: No. The IRS does not grant exemption to an organization nor does it allow an organization to ...
Non Profit Trip Accounts	5/6/2009
Q: Our group would like to know if individual trip accounts for each student is against the non profit ... A: The IRS may have a problem with a 501(c)(3) organization allowing individuals to collect funds to go ...
Benevolence Payments	5/6/2009
Q: I was told that our church benevolence fund could not be used to pay utility companies direct or ... A: That is incorrect. Many churches have what they call a Church Compassion Fund or Church Benevolence ...
Non-profit corporation without 501(c)(3) soliciting donations	5/6/2009
Q: I have incorporated as a non-profit corporation in the state of NY. I have not filed for the 501 ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Class Reunion Account	5/6/2009
Q: I am the class president of high school and we are about to have our 10 year class reunion. I would ... A: You can apply for EIN online at the IRS SS-4 site: ...
Facilities and equipment	5/5/2009
Q: Our high school aged boy's lacrosse club is incorporating and filing for 501c3 status so that ... A: The IRS has taken a position that "[a]n organization may be educational within the meaning of IRC ...
new soccer club	5/5/2009
Q: I am part of a new soccer club formed last year. We were told they are in the process of becoming a ... A: There is no federal law specifying what part of a club's general funds may be used for expenses. ...
Non-profit closing doors	5/5/2009
Q: My son attends a daycare that is a 501(c)(3)non-profit organization in PA. The executive director ... A: In order to have obtained IRS exemption determination, a 501(c)(3) organization would have had to ...
regulations on who checks can be written to?	5/5/2009
Q: Can a non-profit organization write checks/provide payment to individuals to: a) reimburse them for ... A: a) Reimbursements may be made. See: www.irs.gov/pub/irs-pdf/p535.pdf "Business Expenses" Table 11-1 ...
Personal vs business	5/5/2009
Q: Can a pastor claim mileage and business reimbursements for doing things for a family member - i.e ... A: Well, then the Board of Directors of the Church would need to decide what parts of the services are ...
need to know	5/5/2009
Q: and thank you in advance for your response to my question. My question is. I have a bachelors degree ... A: No, not by the IRS. However, if you want to establish an educational organization you would need to ...
new soccer club	5/5/2009
Q: I am part of a new soccer club formed last year. We were told they are in the process of becoming a ... A: It appears that team members raised funds (sales) on behalf of a 501(c)(3) organization. Those ...
Resale Items	5/5/2009
Q: I am part of a non-profit resale store benefiting the mission of a pregnancy and parenting resource ... A: It appears that your store is part of a corporation that has received 501(c)(3) organization status ...
Class Reunion	5/5/2009
Q: We are organizing a high school class reunion. We will be opening an account and accepting money, ... A: No. You can apply for EIN online at the IRS SS-4 site: ...
Non-profit granting to members only	5/4/2009
Q: Are there legal issues raised by a 501(c)3 granting funding for projects through an application ... A: Generally 501(c)(3) organizations need to serve public, not private interests and the answer to ...
International Subsidiary	5/4/2009
Q: We are a 501(c)(3) ministry organization and we are looking at acquiring another non profit ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
donate labor or professional service to a non-profit high school	5/4/2009
Q: I have a question. If a teacher donates his teaching service to a 501(c)(3) non-profit high school ... A: See on page 26, right column of IRS instructions for Form 990 and 990-EZ ...
Non Profit 501c3 Name Change	5/3/2009
Q: I have a non-profit client that has been an established non-profit for over 10 years. Now their ... A: The corporation would need to amend its Articles of Incorporation if it wants to change its name ...
Gymnastics booster club	5/3/2009
Q: The booster club at my son's gym is considering applying for 501(c)(3) status. I have read your ... A: No. See: www.irs.gov/irm/part7/ch10s27.html#d0e103833 "If an organization, composed of local ...
financial disclosure to members	5/3/2009
Q: What financial documents are required to be provide upon request. I know the 990 or tax return have ... A: Unless the sports organization receives government assistance or otherwise has internal rules that ...
financial disclosure to members	5/3/2009
Q: What financial documents are required to be provide upon request. I know the 990 or tax return have ... A: If a nonprofit has received IRS exemption determination or files annual returns (Form 990) with the ...
Gymnastics booster club	5/3/2009
Q: The booster club at my son's gym is considering applying for 501(c)(3) status. I have read your ... A: You asked, "Could we maintain the 'individual' accounts and fundraisers if the individuals ...
IRS, Rent, Non-Profit status	5/3/2009
Q: Several years ago I ran across an article in which the IRS was challenging the Non-Profit Status of ... A: I am not familiar with the article of several years ago that you referred to and I caution trying to ...
fundraiser for a sick neighbor	5/2/2009
Q: My neighbor was diagnosed with MS about 6 years ago. Since the diagnosis, she has lost the ability ... A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf on page 6 where the ...
Donated Facilities	5/2/2009
Q: I donated a portion of the rental payments due from a nonprofit for use of facilities and paid ... A: I am assuming from what you wrote that a 501(c)(3) qualified organization has a rental agreement ...
setting up alumni group	5/2/2009
Q: I have been asked by our newly formed college alumni group (were a group of 150 people who have ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Non-profit ad sales	5/2/2009
Q: Can a magazine which receives the majority of its revenue from advertisement sales qualify for ... A: It appears that you are asking whether an entity, properly incorporated under a state nonprofit ...
Designated Church Gifts	5/2/2009
Q: Can a Pennsylvania church (501 3 c) use designated funds received over many years (8 - 10) for other ... A: Your issues are controlled by state law and states may differ somewhat with how they would treat ...
Funds raised for sports team	5/2/2009
Q: I am manager for a soccer team that will be traveling this summer. We have been fundraising for the ... A: A booster organization is an organization that supports a other group, but most of the IRS rules ...
Donor and CEO the same person	5/2/2009
Q: Can shareholder of a for-profit be the donor and the CEO of a 501(c)(3) public charity? If yes, are ... A: She can not be paid more than what is reasonable for her work and she can not vote on the issue at ...
Organizing a Club	5/2/2009
Q: we have put together a local rabbit breeder club that is chartered by the ARBA (American Rabbit ... A: You can apply for EIN online at the IRS SS-4 site: ...
Non Profit Expenditures	5/1/2009
Q: Does freedom of information apply a non-profit which receives government grants ? A: Open Meetings Laws in Different States and usually called "Sunshine Laws". Generally 501(c)(3) ...
expenses incurred on behalf of 501(c)3	5/1/2009
Q: Taxpayer incurs expenses on behalf of Commemorative Air Force, like purchasing fuel during air ... A: www.irs.gov/pub/irs-pdf/p526.pdf at page 5 under the heading "Out-of-Pocket Expenses in Giving ...
Distribution of nonprofit asset	5/1/2009
Q: We are a 501c3 that raises money to support children in the developing world. We had a mobile home ... A: Your use will not jeopardize the tax deduction from the donor unless that donor requested you to ...
Donor and CEO the same person	5/1/2009
Q: Can shareholder of a for-profit be the donor and the CEO of a 501(c)(3) public charity? If yes, are ... A: Yes, often major donors are the only persons that are interested in becoming an officer of a ...
non-profit charging for consulting	5/1/2009
Q: I work for a non-profit, where we have an area of expertise. What are the cautions for charging for ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Funds raised for sports team	5/1/2009
Q: I am manager for a soccer team that will be traveling this summer. We have been fundraising for the ... A: I would need to know the subsection of IRC 501(c) under which the organization was incorporated and ...
Can donor and CEO the same person?	5/1/2009
Q: Can a shareholder of a for-profit be the donor and the CEO of a 501(c)(3) public charity? If yes, ... A: Yes, often major donors are the only persons that are interested in becoming an officer of a ...
ORGANIZATION CHAPTERS	4/30/2009
Q: Our organization is broken into 12 membership groups (chapters). Each group has 30 - 50 people. If ... A: An officer or other person authorized by the corporation should sign and then, generally they are ...
ORGANIZATION CHAPTERS	4/30/2009
Q: Our organization is broken into 12 membership groups (chapters). Each group has 30 - 50 people. If ... A: It appears that you have one organization that is a 501(c)(3) corporation and it works with ...
Can a volunteer get compensations or reimbursements and has he pay taxes for this?	4/30/2009
Q: Can a volunteer get compensations or reimbursements and has he pay taxes for this? We are an ... A: It is a contradiction of terms to use the word "compensation" to refer to a "volunteer" as, if the ...
501c3	4/29/2009
Q: We are a vol. fire dept and are a 501c3. We want to start a club under a different name. Can we be ... A: The IRS grants exemption to LLCs that are properly organized and operated. However, it only would ...
Non-profit conflict of interest forms	4/29/2009
Q: My question has two parts: first, do non-profit employees normally sign, or are they required to ... A: It is hard for me to inform you what is normal as that often results in bad management as most ...
Non-profit Booster Club Boards	4/29/2009
Q: We are a first year cheerleading gym. If a gym owner has asked 3 people to be on the initial Board, ... A: It appears that your organization may have a problem obtaining 501(c)(3) organization status with ...
501c3 qualifications	4/29/2009
Q: My local golf course is currently a nonprofit 504 Revised Domestic Non Profit. It is a small ... A: Yes, there are many golf courses that are qualified 501(c)(3) organizations. For example Beulah ...
501c3 qualifications	4/29/2009
Q: My local golf course is currently a nonprofit 504 Revised Domestic Non Profit. It is a small ... A: Many community recreation centers are 501(c)(3) organizations and you may be able to attain to that ...
Salary vs donated time	4/29/2009
Q: I work 16 hours per week as our church's financial manager. I am paid an hourly rate and use a ... A: You are not assuming correctly. The church does not need to pay you your "hourly rate" unless that ...
Salary vs donated time	4/29/2009
Q: I work 16 hours per week as our church's financial manager. I am paid an hourly rate and use a ... A: The question is whether your position is exempt from the normal wage and hour guidelines. I find no ...
booster club	4/28/2009
Q: need to start a booster club for a high school orchestra. What all do I need to do? What should I do ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
Laws concerning minors fundraising for nonprofits	4/28/2009
Q: I work with a childrens charity who often gets volunteers who are minors who want to help us ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Non-profit 501(c)(3) question	4/28/2009
Q: Are these types of organizations able to pay a salary to its directors and vendors of the business? A: A 501(c)(3) organization may pay a salary to its directors but no more than what is reasonable. ...
reactivate tax exempt status	4/28/2009
Q: the organization is inactive what do we have to do to reactivate our status as a tax exempt ANSWER: ... A: It appears that you have written that the 501(c)(3) organization does not presently have exemption ...
Change of Name and Focus of 501c3	4/28/2009
Q: I am a Pastor and I have a 501c3 that our ministry started in California a couple of years ago. We ... A: Your organization would need to change the name with an amendment or restating of the articles of ...
reactivate tax exempt status	4/28/2009
Q: the organization is inactive what do we have to do to reactivate our status as a tax exempt A: First contact your State (usually Secretary of State's Office - Corporation's Division. Your issues ...
amending by-laws	4/28/2009
Q: We are a band booster organization who are completing our initial set of by-laws. We would like to ... A: See http://law.justia.com/alabama/codes/7665/147217.html which is the Alabama Nonprofit Corporation ...
gym owners and 501c3	4/28/2009
Q: We are having issues in writing our new bylaws for our 501c3. The owners of the gym want a voting ... A: It appears that you are writing about a 501(c)(3) booster organization. The IRS allows private ...
Change of Name and Focus of 501c3	4/28/2009
Q: I am a Pastor and I have a 501c3 that our ministry started in California a couple of years ago. We ... A: An officer of your organization should call the IRS Exempt Organizations unit in Cincinnati at ...
Change of Name and Focus of 501c3	4/28/2009
Q: I am a Pastor and I have a 501c3 that our ministry started in California a couple of years ago. We ... A: First you should check with the California Secretary of State's office to find out the status of the ...
Coaches' fees	4/28/2009
Q: My daughter is in a competitive dance team that conducts fundraisers to help offset our costs for ... A: It appears that you have competitive dance team working at a for-profit gym (or studio). Is there ...
Foreign starting up a nonprofit in California	4/28/2009
Q: I'm from Spain and I want to startup a nonprofit in San Francisco, California, to share 100% ... A: No. States allow set up of corporations by foreigners. However, it appears that your operation ...
amending by-laws	4/27/2009
Q: We are a band booster organization who are completing our initial set of by-laws. We would like to ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Churches and 501c3 status	4/27/2009
Q: Can churches with a 501c3 status rent buildings or meeting space to members or the community without ... A: Yes, as long as the church maintains its regular church activities. In fact, unless there are ...
Gymnastics Booster Club	4/27/2009
Q: We are a 501(c)(3), also recognized as a 509 (a)(1) and 170 (b)(1)(A)(vi). We have separate ... A: It appears that you have already read my one page summary of IRS regulations relating directly to ...
Tax ID Number	4/27/2009
Q: If a non-profit group has their own tax ID number is the groups money regulated under a school ... A: That individual certainly has the right to ask for information. Now, if you are asking to whom ...
School District running after school program	4/27/2009
Q: I am working for a school district that is a non for profit organization, in their before and after ... A: What you are referring to appears to be a 501(c)(3) organization engaged in an activity related to ...
As an individual (no other employees) do I need to be a 501c3	4/27/2009
Q: I am starting a christian counseling service and want to be located in a church in Virginia - I have ... A: Some counseling organizations would become eligible by the IRS as a 501(c)(3) but usually the IRS ...
non-profit structure	4/27/2009
Q: This is a bit of a complicated question and I hope it's OK to ask. I am stumped though as to where ... A: The IRS often considers an issue similar to what you are referring to, but in the context of ...
Need answer ASAP - meeting tomorrow and Forgot to add this to question	4/27/2009
Q: This is an amendment to our Bylaws. Also, I did wonder: 1) Should we have our own number? 2) ... A: Yes, that is good to have all members of the board sign the conflict of interest policy and ...
late paper submittal	4/27/2009
Q: Harvey This question does not necessarily have to do with any particular field of law. I am ... A: Jeremy, I have in my profile that this free forum is only for relevant IRS federal exemption issues ...
Nonprofit collection practices	4/27/2009
Q: Can a non-profit organization that charges fees to its clients, write off non-payment of those fees, ... A: The "operation" that I referred to earlier was the write off then later recovery. There is no ...
Nonprofit collection practices	4/27/2009
Q: Can a non-profit organization that charges fees to its clients, write off non-payment of those fees, ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Need answer ASAP - meeting tomorrow and Forgot to add this to question	4/27/2009
Q: This is an amendment to our Bylaws. Also, I did wonder: 1) Should we have our own number? 2) ... A: That Section 4 is fine if that is what you want to add. As for sending an income statement to the ...
Pro Bono legal assisstance	4/27/2009
Q: Where can I find "pro-bono" legal assistance for my nonprofit organization? We are primarily ... A: You wrote that you were from India. I do not have any contacts in India for such pro-bono work. As ...
disbanding nonprofit	4/27/2009
Q: My club wants to disband the funds in our account. The accounts are set up by individuals parents. ... A: For a 501(c)(3) organization you want not give refunds unless it was for fees paid by the family for ...
disband a parent club	4/27/2009
Q: If a non-profit group has their own tax ID number is the groups money regulated under a school ... A: You would first need to see the clauses in the articles of incorporation and bylaws. If it was ...
embezzlement /IRS	4/27/2009
Q: How do I report an embezzlement to IRS A: Complaints could go to your State's Attorney General's Office as that office generally oversees ...
Coach	4/27/2009
Q: Can a coach be a part of the parents club? ANSWER: Yes but may not control that 501(c)(3) ... A: A parent may certainly question, but then the organization may not be required under law to give the ...
Coach	4/26/2009
Q: Can a coach be a part of the parents club? ANSWER: Yes but may not control that 501(c)(3) ... A: The 501(c)(3) organization that is a booster organization is not for the parents or youth to ...
Coach	4/26/2009
Q: Can a coach be a part of the parents club? A: Yes but may not control that 501(c)(3) organization. If you have not yet read my one page summary of ...
Disbursement of fundraised funds	4/26/2009
Q: We are a non-profit band booster organization. We have a question about the use of moneys fundraised ... A: Your 501(c)(3) organization band booster is not operating properly with those individual accounts. ...
Equipment	4/26/2009
Q: I have a cheer parent club that is working to raise money for the teams. Right now I ordered some ... A: Yes, a 501(c)(3) organization may sell items that are related to its exempt purposes and use the ...
Tax ID Number	4/26/2009
Q: If a non-profit group has their own tax ID number is the groups money regulated under a school ... A: No, but as I wrote in my revision to my answer to an earlier question of yours today, ff the ...
Tax ID Number	4/26/2009
Q: If a non-profit group has their own tax ID number is the groups money regulated under a school ... A: Yes, sometimes schools would claim trademark protection for their team name, or logo ...
Tax ID Number	4/26/2009
Q: If a non-profit group has their own tax ID number is the groups money regulated under a school ... A: No, not unless the group has signed a contract with the school district or is using a trademark that ...
record keeping	4/25/2009
Q: What is the best course of action to protect your non-profit corporation when a former Board ... A: If you are concerned about the tax man I would not be concerned about that as you did your best ...
record keeping	4/25/2009
Q: What is the best course of action to protect your non-profit corporation when a former Board ... A: It appears that you believe that the former president may have borrowed funds from the organization ...
record keeping	4/25/2009
Q: What is the best course of action to protect your non-profit corporation when a former Board ... A: I am assuming that you are a member of the Board or an officer of the corporation. You should ...
tax write off	4/25/2009
Q: I am a former board member of a non profit 501c3 organization involving a youth dance team. Can ... A: See IRS Publication 526 "Charitable Donations" www.irs.gov/pub/irs-pdf/p526.pdf IRS 509 ...
board control/dissolve	4/25/2009
Q: ..Can one change an entire board of directors based on incompetence.Obvisiuly they will not approve ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Payment to officers of board	4/25/2009
Q: Is it okay for a member (president) of a non-profit organization's Board to be paid for work which ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
transfer 501 (c) (3) to 501 (c) (4)	4/24/2009
Q: Our 501 (c) (3) board has decided to move the organization to a 501 (c) (4) for a variety of ... A: As long as you are approved by the IRS as a 501(c)(3) organization and are acting in accordance to ...
need clarification on answer to someone else's question	4/24/2009
Q: On 2/27/2008 you had a question from "Richard". Your answer was that "...no transfer allowed. ... A: That was an answer relating to how control of the Board of Directors may be transfered to a ...
baseball club - refunds	4/24/2009
Q: we recently pulled our son of of a non profit 501(c)3 baseball club what if any monies are we ... A: You would only be entitled to funds that you paid (not donations) that were subject to a contract ...
5013c Youth Association	4/24/2009
Q: Our Youth Association recently received its 5013c status. The association is made up of several ... A: The team may be too small a group. There is no specific number, though, and, therefore, I can not ...
Non-profit owing a portion of a for-profit	4/24/2009
Q: the non-profit is a public 501c3 (CHODO) involved in development of low income housing. It wishes ... A: What you are referring to depends upon, among other factors, whether the 501(c)(3) organization will ...
Officers of 501 3 c	4/24/2009
Q: Our religious organization has 501 3 c status for over 25 years. We have some canadian membership ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
501C3 Church	4/23/2009
Q: Do you know where I can find a publication that specifies the rules and regulations for board ... A: The IRS does not have any bright line rule for churches as to diversity on the Board. I have in my ...
Mandatory Fundraisers	4/23/2009
Q: Can a Parochial School force a 'Mandatory Fundraiser' after the child has been registered and a ... A: The issue is whether a Parochial school may add tuition requirements after a contract has been ...
Cash to Foreign (non-us citizens) Organizations	4/23/2009
Q: How can a US based church, properly incorporated and a qualified 501c3 with determination letter ... A: First we need to decide whether those traveling international missionaries (non-US citizens) who are ...
Dissolving a Forida 501(c) Corporation	4/23/2009
Q: My question is about dissolving a not-for-profit faith-based corporation. I know that assets of the ... A: http://law.justia.com/florida/codes/TitleXXXVI/ch0617.html is the Florida law for Not-for-profit ...
Subunits of 501 (c) 3 agencies	4/23/2009
Q: I asked the state department if a 501 (c) 3 can have a subsidiary, and they said yes. I'm thinking ... A: That description, in itself, would not be sufficient for me (or the IRS) to decide whether the ...
Subunits of 501 (c) 3 agencies	4/23/2009
Q: I asked the state department if a 501 (c) 3 can have a subsidiary, and they said yes. I'm thinking ... A: In nonprofit law the word subsidiary corporation would mean that the parent corporation would have ...
High School Class Booster Club	4/22/2009
Q: The parents of our freshmen want to start a Booster's Club in order to help raise funds for the ... A: In order to have donations deductible by the donors according to Internal Revenue (IRS) Service ...
non-profit status change	4/22/2009
Q: I recently became director-treasurer of a Trap and Skeet gun club. Several years ago, the club filed ... A: Some organizations would qualify for 501(c)(3) organization status whereas others would not, but ...
founding two companies, one a charity and the other for-profit	4/22/2009
Q: I founded a large religious educational institute that we later registered as a 501 public charity. ... A: None of those 4 activities are allowed for 501(c)(3) organizations as there is what is called ...
disbursement of funds	4/21/2009
Q: We are trying to set up a 501c3 for an alternative health and wellness clinic in NY state. It is our ... A: Yes, the IRS may grant 501(c)(3) organization status to an organization that make grants to ...
Selling a Non profit business	4/21/2009
Q: I am one of the founders of a non profit business. I am the sole funder and the business is doing ... A: A 501(c)(3) organization is not owned by anyone and you may not profit from it. You would need to ...
Board meetings	4/21/2009
Q: Rules for conducting board meetings, are there different rules for each state or are the rules ... A: You are welcome. http://law.justia.com/texas/codes/bo/002.00.000022.00.html are the Texas Code ...
Union's Scholarship Trust	4/21/2009
Q: I recently agreed to help a local trades union receive tax-exempt status for their scholarship ... A: Sometimes it would qualify as a (c)(9) www.irs.gov/pub/irs-tege/eotopico82.pdf page 8 of ...
Board meetings	4/20/2009
Q: Rules for conducting board meetings, are there different rules for each state or are the rules ... A: I have in my profile that this free forum is only for relevant IRS federal exemption issues of ...
Lease of 501(c)(3) owned property to for profit entity	4/20/2009
Q: I am on the board of a small chain of non-profit nursing homes that are currently self-managed and ... A: I am assuming that the non-profit nursing homes are part of a 501(c)(3) organization. I am also ...
Booster Club Using Sports Club Non Profit Status	4/20/2009
Q: I am an offcier of a rowing club that is a nonprofit organization and serves the interests of rowers ... A: The 501(c)(3) organization that is a booster organization is not for the parents or youth to ...
Booster Club Using Sports Club Non Profit Status	4/20/2009
Q: I am an offcier of a rowing club that is a nonprofit organization and serves the interests of rowers ... A: Your nonprofit is not conferring its status upon another organization as the booster group is part ...
US Non Profit Charity	4/20/2009
Q: I would like to know if a Canadian citizen can start-up and register a non-profit in the US? If I ... A: Yes, most states do not have a nationality requirement for incorporators of nonprofit corporations. ...
Booster Club Using Sports Club Non Profit Status	4/20/2009
Q: I am an offcier of a rowing club that is a nonprofit organization and serves the interests of rowers ... A: It appears from what you wrote that the booster organization is not separately incoporated fr