Article Archives >> To the Point

I have a 509(a)(1) organization and would like to use an organization’s 501(c)(3) status (to obtain contributions). Is there a group I can use as an incubator until I get a 501(c)(3) status?

If you have an organization classified under Section 509(a)(1), you already have an organization recognized as a charity under 501(c)(3). You don’t need to use a conduit to raise funds for your program.

Charities are recognized as exempt under Section 501(c)(3) of the Tax Code, but the IRS classifies them as private foundations unless they show that they qualify as public charities under one of the subsections of Section 509(a). (See Ready Reference Page: “Calculating Public Support.”) Therefore, the IRS never gets to classify under Section 509 unless the organization has already qualified as a charity under Section 501(c)(3).

Rev: 1/30/07

Article Archives >> To the Point

State Charitable Solicitation Statutes: Everything You Wanted to Know But Were Afraid to Ask
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Charities that seek contributions nationally must typically register in 39 states and the District of Columbia before starting to solicit. Furthermore, for-profit fundraisers are also required to register and file their contracts and other documentation with many states. Since many states are increasing their enforcement efforts to ensure that charities and fundraisers are complying with initial and annual registration requirements, it's important that charities and fundraisers abide by these statutes.

Program materials include an extensive review of the statutes and their provisions, plus a copy of the Uniform Registration Statement for multi-state filings. Purchasers will receive an e-mail receipt that includes a link that will take them to the product download. The download is a pdf file. Learn More

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