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IMPORTANT:
The answers to these questions should not be deemed legal
advice or be acted upon without prior consultation with appropriate
professional advisors. |
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 Does an organization need to register under state charitable solicitation registration laws if it receives unsolicited donations, e.g., those from individuals and organizations that were not approached specifically asking for donations? In other words, how is "solicitation" defined? Answer |
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| Our 501(c)(3) social service agency has an aging donor base. Some of our donors who originally lived in our area have relocated to other states following retirement. We continue to solicit and receive donations from them. Do we need to register to solicit in those states, even though we are not soliciting from a wider population within the state? Answer |
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| My organization has a 501(c)(3) from the state. It also has a full federal 501(c)(3) status. But when I tried to get tax-free billing for a hotel function recently, they denied it and said I need another certificate other than the one issued that declared the incorporation and the federal number ID. What is this certificate they are talking about? Answer |
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| Should a residential neighborhood association, whose membership is established by deed restrictions but whose dues are not mandatory, establish a 501(c)(3) tax-exempt organization as a means to attract grants from state and local government, and tax-deductible contributions from businesses and private individuals, to support the operations of the association for the benefit of the community? Answer |
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| A group of religious leaders in the same state and same denomination form a 501(c)(3) entity separate from their individual churches with one of the purposes to support - not endorse - local political candidates selected after an interview process which is open to all candidates. Is this allowed under 501(c)(3)? Answer |
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| If a CEO/ED is providing terrible leadership and the Board has not done the yearly evaluation required by the by-laws, is there anything an employee can do to get the Board to evaluate the CEO? When is it possible to oust a poorly performing CEO? Answer |
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| The director of a 501(c)(3) decides one day she wants to start her own charity and leaves, taking all the money, supplies etc, to start her own organization She uses a very similar name so she can trick people into donating to her new entity. She is now taking in donations without having her 501(c)(3) in place. Is this legal? Answer |
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| Our nonprofit is having an election shortly for directors. Some people rush in on election night to pay their membership dues, even though they have almost 3 months prior to the election to join. Without it being in our by-laws, can we say "We are not accepting memberships tonight”? We have no way at the last minute of verifying eligibility. Answer |
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| As a 509(a)(2) Private Foundation composed of WW2 veterans (diminishing membership) what are the required minimums for filing Federal tax returns? Our income is principally from dues and interest. Our expenses are mainly for a newsletter and postage. We have an annual reunion which also requires assessments and expenditures. Answer |
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| If a company donates products to a public charity to sell through an auction program, what charitable contribution deduction will be available to the donor? Answer |
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| A donor purchased $300 worth of raffle tickets and now wants a letter for a tax deduction. What do we do? Answer |
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| If an individual or corporation makes a contribution to a public school district, is it considered a tax-deductible charitable contribution, or must the gift be given to a separate 501(c)(3) associated with the school district? Answer |
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| May a landlord deduct the difference between the low rental charged to a charity and the higher actual fair market rental value of property that is leased to the charity? We searched your entire site and couldn’t find anything about a bargain lease. Answer |
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| Is it legal to place political literature on parked cars in the church parking lot or place campaign signs on church property? Answer |
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| A group of people did a hostile takeover of our organization, and I was removed from the board. Some board members wanted to use the groups' money to defeat the mayor who was running for reelection. Those who disagreed were removed. What can be done about this group? Answer |
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| Is there any requirement for a 501(c)(3) nonprofit to post its bylaws on a website for members to review and see? Answer |
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| To whom should a charitable contribution check be made out if a nonprofit organization has not yet received its letter from the IRS recognizing its charitable exempt status—the individual who founded the organization or the organization itself? Answer |
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| Our 501(c)(3) charitable organization received $6,000 of in-kind items, such as printing service, theatrical production service, advertisements. Where do we show the value of these items on Form 990 under Part I (Revenue) or elsewhere in the form? Answer |
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| Does it make logical/financial sense to acquire directors and officers insurance coverage only for select directors/officers? Answer |
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| Does the local chapter of a national organization have to obtain its own 501(c)(3) charitable status or can it "ride" on the national's 501(c)(3) status? Answer |
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| Following up on the question last week about the nondeductibility of a gift of use of a vacation condo, what if a restaurant is donating the food, the facility and the services to permit a charity to run a fundraising event? Is the donation of the food tax deductible? Answer |
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| Can an employee serve on a private nonprofit corporation board of directors? Answer |
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| I donate my vacation condo as an auction item for some of the 501(c)(3)'s with which I am involved. Frequently it goes for $2000/wk or more. More often than not, although I don't request it, I receive a letter from the charity telling me I can claim a $2000 charitable contribution deduction. Is this correct? Answer |
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| We recently attended a charity function (car show) which cost $100 per person. It was advertised as completely tax deductible. We were treated to an open bar, food stations, free Valet Parking, and a drawing was held for leases on a new car. Should that entire admission price be tax deductible? I was told that it was all deductible because the event was completely underwritten. Answer |
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| If our charity receives a cash contribution of more than $10,000 (in actual currency and not a check), must we report the receipt to the Treasury Department? Answer |
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| When and why should a well-established 501(c)(3) organization give consideration to establishing a separate Foundation that supports the organization? What are the benefits and negatives of establishing a Foundation? Answer |
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| Our new nonprofit corporation agreed to buy a property for $250,000. The seller has given us a short extension but we may not have the money to complete the deal. We have already had the engineering and design done for the building, but we have only $400 in the bank. We have yet to buy directors and officers insurance. If we can’t pay the engineer and architect, will we be personally liable? The President signed the contracts in his own name “for the X Center.” Answer |
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| I have recently learned that a trade association claims to be nonprofit, filing a Form 990 Return of Organization Exempt From Income Tax; however, the association has never registered with the state attorney general or the charity bureau. What steps can I take to report this fraudulent activity with the IRS and the state? Answer |
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I formed a nonprofit company in one state and am now getting my MFA in another state on the other side of the country. Can I "move" my nonprofit company to the new state or do I have to start a new one? Answer |
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| Can a 501(3)(c) charity (a hospital) have a for-profit subsidiary that is taxed as a "C" Corp? Answer |
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| Is it legal for a nonprofit Board to conduct electronic meetings or make decisions via email without actually meeting face to face? Answer |
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| May donor-restricted funds be pledged as security for a bank loan? If not, could donor-restricted funds nevertheless be used to satisfy creditor claims if the nonprofit has no other assets? Answer |
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| Several officers and I were recently voted off a nonprofit board for holding an “illegal” Executive Committee meeting without the “permission” or knowledge of the Executive Director. As a former secretary, I am sure we were in compliance with the bylaws. What recourse do we have against the President, the Executive Director or the nonprofit for removing us? Answer |
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| Does the treasurer for a nonprofit have to be a board member?" A woman wants to donate her time to do a charity's books but doesn't want the responsibility of being the Treasurer. At what point does she cross a line and become some kind of de facto treasurer? Answer |
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| May a nonprofit and a for-profit have the same name, but maintain separate corporate structures, accounts and legal identity? Answer |
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| Does a 509(a)(1) still hold nonprofit status? Is it able to apply for nonprofit funding? Answer |
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| Can a church or other charity give away a car that was given to it? I was told no, but the church wants to give it away. Can the church legally do it? Answer |
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| Can a standing committee create its own separate by-laws? Answer |
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| Our executive director and board president are the same person. This president/director has recently made announcements, on behalf of the organization yet without the board's knowledge, that he is leaving his position as director. What authority can the board call upon to rein him in and fix this mess? Answer |
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| Is it necessary to name a Finance Committee as a standing committee in the bylaws of our nonprofit? Answer |
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| Our 501(c)(3) school has a computer use policy that states that the email system is school property. Is it proper for school employees or spouses to use the email system to send unsolicited emails regarding political campaign issues? Answer |
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| Our organization is converting from for-profit to nonprofit in order to seek grants and donations for ongoing support. Can we approach private foundations to obtain grants before being officially recognized by the IRS as a 501(c)(3) entity? Answer |
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| We are a 501(c)(3) charity and would like to put a place for donations on our website. Can we receive a donation from someone in another state and use it in our home area? Answer |
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| Who should appoint the auditors for a nonprofit? Answer |
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| As a nonprofit, do we need to change auditors every so often? If so, how often should we change? Answer |
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| The
bylaws of our nonprofit corporation, a chamber of commerce,
do not specify how to remove a board member, in this case the
President. We have 7 members of the Board. At a meeting, we
voted 4-0 to dismiss her. We also drafted a letter for her removal
that 5 directors signed and one did not. What are the rules
regarding this matter? Answer |
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| For
our charity auction, a donor provided a getaway sailing weekend
complete with meals, water taxi and accommodations on the sailboat.
The donor also captained the boat for the trip. The trip sold
for $2400. What can the donor claim as a charitable deduction?
Answer
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| Our
Chamber officers are not following the bylaws. The bylaws state
that a nominating committee should be appointed and a slate
of names be submitted for voting by the membership. This was
not done last year. The president called individuals she and
the VP felt would be good on the Board. No directors or members
voted. Recently, other bylaws have been disregarded. What is
your advice? Answer |
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| Can
our 501(c)(3) organization keep the list of board members confidential
and refuse to make it available to the public? Answer |
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| In
one of your questions last week, you wrote about sales in which
the seller says "a portion of the proceeds are to benefit"
a certain charity. How would the seller give receipts to those
wanting them? They'd have to say what % of their donation is
going to a charity, right? Answer
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| We
recently hired a new employee who states that a 501(c)(3) corporation
has limitations on the titles that can be given to employees
or created by the company. Is this true? Answer
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| Is
it appropriate for a 501(c)(3) charity to accept money from
a politician who is running for office or is holding office?
Answer
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| May
the president of a small 501(c)(3) corporation appoint her husband
to be the organization's pro bono attorney to give legal advice
and handle routine legal matters? Answer |
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| I
have dissolved a scholarship fund and have requested that the
balance be refunded to me. The director told me that it could
not be done because it would violate the rules of Section 501(c)(3).
Is this correct? Answer |
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| Can
a nonprofit pay for cost of the lunch at a Board meeting with
organizational funds? Answer |
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| We
are a Canadian charity with many U.S. donors who make contributions
with no tax benefits. Are there any legal restrictions to the
nature and/or extent of fundraising solicitations that we may
carry out in the U.S.? Is there any way we can offer U.S. tax
benefits to our U.S. donors without going through a U.S. 501(c)(3)
fiscal agent? Answer |
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| Can
a 501(c)(3) organization provide information in its newsletter
or on its website about openings on local elected boards and
information about running in local elections without fear of
losing its 501(c)(3) status? Answer |
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| I
was a Board member of a $5 million Educational Foundation of
which my husband became President. Our marriage dissolved and
he dissolved the Board. I know of an instance where he "borrowed"
$50,000 from the Foundation for personal use without board knowledge
or approval. Is this behavior legal? Do I have any recourse
considering I'm no longer with the Foundation? Answer |
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| Our
bylaws provide that our Board Chair can vote only in the case
of a tie. Isn’t that a good idea? Answer |
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| We
are a multi-state public charity with donors in many different
states. We primarily solicit through mail appeals and phone
work, as well as personal visits. We don’t hire outside
professional solicitors, but rely on staff for the work. Do
we have to register in every state in which we have donors?
We are registered in the state where our office is based. Answer |
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| I
believe a nonprofit organization has been violating nonprofit
law for years by having hired board members and their family
members for paying jobs in the organization. To whom should
I report this activity in the state and/or federal government?
Answer |
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| The
board of a nonprofit arts organization voted to disband and
close up shop due to financial difficulties -- much to the dismay
of many in the community. Can anything be done to resurrect
the organization? Answer |
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| I
have been told that a 501(c)(3) corporation needs to have insurance.
What kind of insurance does a non-profit need? Answer |
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| In
a traditional nonprofit organization, what is the difference
between board chair, vice-chair or board president, vice-president?
Is one more correct? Answer |
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| The
founder of our nonprofit is the only person who signed the incorporation
papers. A year ago, she resigned from the board at odds with
the other four board members. As the sole incorporator, can
she now dissolve the corporation? Answer |
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| We
are a 501(c)(6) trade association intending to establish a separate
501(c)(3) charity for scholarship activity. Can the board of
directors of the 501(c)(6) serve as the board for the new organization?
Answer
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| Is
a nonprofit organization that is not recognized as a tax-exempt
charity under Section 501(c)(3) out of line when it sells ads
as a sponsorship for an event and gives the business people
the belief their ad is tax deductible because the event is held
by a nonprofit organization?
Answer
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| There
were irregularities during the election of the officers of our
nonprofit corporation and a new election was required. Does
the incumbent president remain in office until the election
is held, or is that office vacated and filled by the vice-president?
Answer |
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| The
Executive Committee of our nonprofit corporation is violating
one bylaw after another. Other directors are also pointing it
out but nothing stops. Their conduct has cost the organization
a lot of money. Should I just walk away or is there a legal
way to stop them? Answer |
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| In
a recent Tax Matters item (August 1-15, 2006), you said that
because of the new Pension Protection Act "Charities that
now think they must provide a substantiation letter only for
gifts of more than $250 will want to assure that their donors
are in a position to claim the deduction for their gifts and
will want to acknowledge all [cash] gifts, no matter how small."
Is this an affirmative duty of the charity? Or just a nice thing
to do for donors? We get a lot of $1 donations and it costs
us more to receipt the donation than it's worth. Answer |
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| As
a member of the Board of Directors, I have been told that the
salary of our Executive Director is protected information not
available to me or the public. Is this correct? Answer |
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| Our
nonprofit has been slowly increasing the balance in the corporate
bank account without any plan for how to reinvest the funds.
Is there a limit to how much a nonprofit can have in a savings
account or carry over without being spent from year to year?
Answer |
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| Can
the Executive Director of a nonprofit corporation fire a director
for not agreeing with him? Answer |
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| We
are a nonprofit youth baseball organization recognized as an
exempt community organization under Section 501(c)(4). We believe
that we should be a 501(c)(3) charity. Is there an advantage
to changing and if so what do we do to change? Also,
we cannot find our articles of incorporation. How do we obtain
that information if the State does not have a copy either? Answer |
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| Our
board president bought our thrift store manager a new car and
paid for it with money donated to our shelter. He also owns
a printing firm which charges thousands to the shelter, yet
all our documents that go out to the public say the printing
is donated. What can be done to get this unethical man off of
our board? Answer |
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| Can
a for-profit business owner start a nonprofit public charity?
Answer |
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| Is
it possible for a 501(c)(3) nonprofit organization to go into
a partnership with a for-profit business corporation on a 50-50
basis? Are there different tax issues involved? Answer |
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| We
are planning on moving our small, nonprofit theatrical production
company to another state. Do we have to file for 501(c)(3) status
again once we move, or is our existing status valid in any state?
Answer |
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| Can
a person give money to a church and designate that it to be
given to a person outside the church? Answer |
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| Our
church has finished a building campaign and some of the elders
say that the gifts for the building fund can be spent on other
purposes. They cite an IRS Revenue Ruling and the cy pres doctrine.
Are they correct? Can I get my gift back and, if I do, will
I have to declare taxable income? Answer |
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| Our
nonprofit uses a for profit fundraising group that runs a fundraiser
at which people are invited to come at no cost to learn about
the program. The invitation indicates that they will be asked
to give a contribution and that a meal will be provided. It
is usually very successful. Acknowledgements provided to the
donors indicate that "no goods or services were received
in exchange for the donation." Is this appropriate since
the attendees did receive a meal? Does the fact that the meal
is provided "for free" to all whether a donation is
given or not mean that we can legally say "no goods or
services were received." Answer |
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| Is
it legal for the minutes of a meeting of a nonprofit corporation’s
Board of Directors to exclude ALL names so as to protect privacy?
Answer |
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Our
nonprofit organization has always made our Board meetings
open to the public. At our last meeting, things became quite
disruptive
and interrupted the flow of the meeting. The next meeting we
had was
not open to the public. Some members of the Board believe that
this
is an illegal action. Are they right? Answer |
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| What
is required to convert a private foundation to a public charity?
Answer |
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| Our
501(c)(3) historic home museum rents out the museum for dinner
parties, showers, meetings etc. Can we allow political candidates
to rent the Center to use for campaigning purposes? We technically
have no involvement other than the rental contract. Answer |
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| Is
it okay for our church to send the pastor and his wife to a
conference of the fellowship and pay for it all if there is
no reason to send the wife? How about gifts to visiting ministers?
Are these examples of payments that “inure to the benefit
of an individual” that could cost the church its tax exemption?
Answer
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| The
Church which I Pastor left one of the major denominations last
year and our 501(c)(3) was under their umbrella. Do we need
to file again for that status with the IRS or are we covered?
Answer
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| What
is the fundamental difference between a "Non-Profit"
["NPO"] and a bona fide, Christian Church? Over the
years, I have observed even lawyers refer to churches as "Non-Profits"
or "Non-Profit Organizations". Sounds to me like an
oxymoronic, impossible, mutually exclusive concept. But, I am
not a lawyer. Answer |
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| Where
Articles filed more than 35 years ago say the membership shall
consist of the incorporators but the Bylaws are silent about
member voting rights and no member meetings (or vote) have ever
occurred, do the members that still survive have the right to
vote on a fundamental corporate change after Board approval?
Answer |
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| Our
nonprofit softball team is dissolving after less than a year
in existence. We have some money left over from sponsorships
that we solicited but did not use. Some of the parents want
us to distribute the money to them since they paid the players’
fees. We were thinking of transferring the money to another
team and might merge. What should we do? Answer |
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| Would
it be proper to complain to the IRS if a nonprofit engages in
an active lobbying effort? This nonprofit has a 501(c)(3) status.
It has come to my attention that a nonprofit must have a 501(c)(4)
status in order to lobby. Answer |
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| Can
a nonprofit organization maintain the right to refuse membership
to anyone it chooses? The bylaws say it can, but isn’t
that susceptible to bias and discrimination? Answer |
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| Why
is proxy voting different for nonprofits? Shareholders of a
business can vote by proxy, but directors of a nonprofit can’t.
Is there any explanation for this? Answer |
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| Our
articles of incorporation state that our 501(c)(3) religious
nonprofit cannot own stock. Is there any way we can change the
articles or adopt a new policy on investing? Answer |
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| If
I want to pay for a service to a 501(c)(3) organization, do
I get a personal tax benefit or write-off for paying the cost
of that service? Answer
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| Can
a pastor discuss politics from the pulpit? If so, how far can
he/she go. Can a pastor have political events at his home as
a private citizen? Answer |
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| Can
you borrow from "designated funds" to pay other bills,
and then replace the funds later? Answer |
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| What
is the difference between public charities, private foundations,
and donor advised funds? Answer |
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| Are
we required to renew our nonprofit (501(c)(3)) status? With
the state? With the IRS? Answer |
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| We
are a small 501(c)(3) theatre group. All of our board members
serve without pay. Our annual budget is $10,000 to $15,000.
Some of our members have substantial property. Do we need board
insurance?
Answer
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| Our
nonprofit committee has worked under the auspices of our city
government, which covers all our functions under its insurance.
If we become a separate 501(c)(3) organization, will we be liable
for accidents or can we still remain under the city’s
insurance? Answer
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| Our
501(c)(6) business association has taken on a local charitable
cause. Can we form a wholly owned subsidiary that obtains 501(c)(3)
status in order to solicit charitable grants and contributions?
Answer
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| I
asked a 501(c)(3) organization for a balance sheet and financial
statement, over 4 months ago and they have not responded. Do
they have a time limit as to when they need to respond?
Answer
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| Is
it okay to claim and advertise that you are a nonprofit organization
to your consumers and clientele before filling a 501(c)(3) application
for recognition of exemption?
Answer
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| I
would like to know if 501(c)(3) organizations must charge tax
on merchandise SOLD. I understand that they do not pay tax on
merchandise purchased. Answer |
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| Our
Executive Director would like to supplement our publishing dollars
by selling ads. I have been told by our grant writer that we
cannot do this because the income would be treated in a different
manner than the grants we are funded with. Answer |
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| Can
a charity participate in a referendum on gentrification? Answer |
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| Are
officers of a nonprofit corporation required to give a written
copy of the by-laws to each of the members or is it sufficient
to allow members to read the rules in an open meeting.
Answer
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| Our
charity currently uses PayPal to processes credit card payments
for donations. We ask anyone who uses this payment option to
include an extra amount to cover the transaction fees that the
site charges. Is the total amount tax deductible to the donor?
(i.e. if I donated $508, $500 to the organization, $8 for transaction
fees, is the entire $508 tax deductible or just the $500 that
goes to the organization?) Answer |
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| Can
a U.S. corporation whose main objective is to fund a religious
orphanage/school in a foreign country get 501(c)(3) status and
collect donations from American donors that are tax deductible
to the American donor? Answer |
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| I
have started a nonprofit organization and would like to file
an IRS 501(c)(3) application. I need to have this status within
the shortest possible time. Please let me know how long it might
take.
Answer |
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| I
am wanting to start a nonprofit 501(c). Could you please give
me some information on the first steps in starting? Answer |
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| We
have received a request from a for-profit organization for a
membership list from our 501(c)(3) charity. We have always guarded
this list against use for any purpose other than our stated
mission and have not divulged it. I am greatly concerned that
this membership list will be used to solicit business for the
companies that are requesting it. Are we required to provide
them our membership list? Answer |
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| If
we change our nonprofit mission statement and bylaws with minor
word phrases, whom do we legally have to notify? Or do we just
keep the new version which was approved by the board of trustees
at our national office? Answer |
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| Our
school is a 501(c)(3). If we have a parent organization that
raises funds for our school, should it have its own EIN for
its checking account or use ours? Answer |
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| Can
the founder of a 501(c)(3) nonprofit, who does not hold a board
position, be voted out of the organization by board members?
And if so, what protection does that founder have to safeguard
that which he or she has founded? Answer |
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| Our
Church is a 501(c) (3) which has a Camp with about 30 cabins
where we spend about 10 days a year for Church services. Many
parties are interested in renting our facilities. Would
such rentals affect our status with the IRS and cause us to
be subject to local real estate taxes? Answer |
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| Can
a for-profit have a nonprofit subsidiary? Answer |
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| I
am a volunteer. A grateful patient gave me a personal gift worth
about $200. Is the gift considered compensation for my work?
Answer |
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| I
requested a copy of the budget from a 501(c)(3) children’s
home that I contribute to. I was told it is not their policy
to provide budgets. Aren’t they required to? Answer |
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| I
am the treasurer of a 501(c)(3) community center. We are thinking
of closing the Center. What happens to the exempt status? Does
it also cease? Can it be held in the hope of reopening the Center,
or can it be transferred to another entity? Answer |
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| Is
it a problem to pay for alcohol as part of a Board meal with
501(c)(3) funds? Answer |
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| Our
nonprofit corporation is now 10 years old. We have always had
just the 4 officers and members. As we are growing, we would
like to start a voting board along with the officers. How do
we go about doing this? Answer |
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| If
funds are stolen from a 501(c)(3) charity, does the Board have
an obligation to report it to the police if the funds are returned?
Answer |
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| Where
can I find information on how to take a company back to a for-profit
organization? The company was started as a for-profit for the
first 5 years and then turned into a nonprofit for 4 years.
The owner wants to sell it but first needs to make it into a
for-profit again? Answer |
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| My
wife and I have a private family foundation. We work with at
risk inner city kids for educational tutoring. Can we become
a public charity or create a public charity with just the two
of us as trustees? Answer |
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| Is
there a legal method for a group of “affiliated”
501(c)(3) organizations to join under one holding company so
they are legally tied together? They are now affiliated by some
common board membership and shared services. Answer |
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| Is
there a law that says churches are exempt from disclosing their
finances and salaries? Answer |
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| Can
a tax deduction be taken for 2005 even though the commitment
and the gift were made in 2006? Answer |
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| Our
501(c)(3) is holding a retreat for families of individuals with
a certain disease. A family with a vacation rental is willing
to donate the home for the retreat if they can have a charitable
contribution deduction. Will they be able to claim a deduction
if they provide the house? Answer |
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| Can
two independent 501(c)(3) organizations merge? Answer |
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| Can
our 501(c)(3) accept a donation to be used by an individual
member for her expenses or must it be used for the entire membership
to be deductible? Answer |
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| I
am doing volunteer work for a 501(c)(3) organization that says
only paid “members” can see the bylaws and charter.
I thought these had to be available to the general public upon
request, but maybe I was confusing it with the tax return. Please
advise. Answer |
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How
secure is a donor’s life annuity under a 501(c)(3) charity
giving plan?
Does the Government offer any guarantee if the plan operator
falters? Answer |
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| Twice
a year our 501(c)(3) charity publishes a newsletter for which
we charge recipients. Is it illegal to give the newsletter (for
free) to individuals who donate to our organization with the
understanding that they will claim their donation as a tax deduction?
Answer |
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| If
a requirement for a grant is to be a nonprofit organization
with the 501(c)(3) exemption and my foundation status classification
is 509(a)(1), does that mean I am not eligible for the grant?
Answer |
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| At
the last election of officers, the members voted for officers
for terms of two years. Before the next election, the Board
extended the terms for another year. The bylaws used to require
that any changes had to be approved by the members, but the
Board changed the rule so they can make changes without notice
or approval from the members. Are there any IRS rules that vest
power in the members? Answer
|
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| Did
you ever hear of a law that says a 501(c)(3) organization cannot
conduct an auction of any kind? Answer |
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| Can
a husband and wife be members of the board of directors? And
can a member of the Board be a paid employee of the corporation?
Answer |
| |
| Is
it true that the Katrina tax relief bill, which provides that
donors may deduct up to 100% of their income this year, does
not apply to gifts to supporting organizations or donor advised
funds? Answer |
| |
| We
would like to start a Foundation in honor of our mother who
gave her life to volunteer causes. The Foundation would support
some of her favorite charities. How should we go about it? Answer |
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| Is
it illegal for a charity to use money allocated to a building
fund for general operating purposes? Answer |
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| Can
a nonprofit corporation that has no members (according to its
articles of incorporation and bylaws) charge “membership
dues” as a fundraising activity? Answer |
| |
| The
deed to our church contains a reverter clause stating that the
property will revert to the grantor if the property is no longer
used for religious purposes. Since the church is a nonprofit
corporation, is that clause still enforceable? Answer
|
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| Our
501 (c)(3) corporation has an endowment fund. Is there, by law,
a requirement that a certain percentage of the interest be spend
annually? Answer
|
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| Our
501 (c)(3) corporation is considering making a contribution
to a hurricane relief fund. Is it legal for a 501 (c)(3) corporation
to make such donations to another charity? Answer
|
| |
| Our
501 (c)(3) corporation is banned from engaging in political
activity, but we are considering ways to help hurricane victims
and thought one way we could be helpful is to contact our representatives
in Congress to ask them to provide funds to aid governmental
relief efforts. Are we allowed to do so? Answer |
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| How
do you find out if an organization has 501 (c)(3) status in
your state or another state? Answer |
| |
| Is
there a statute prohibiting convicted felons from serving on
a 501 (c)(3) corporation board? Answer |
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| We
have a nonprofit organization with an executive board and a
general board. One member of the executive board shares information
of the executive board meetings with a general board member.
Do we have grounds to remove this person from the position?
Answer |
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| I
understand that a foundation cannot make a grant to a nonprofit,
where the grant is more than half of the agency's budget. For
example, if a nonprofit's annual operating budget is $100,000,
a foundation cannot make a grant of $51,000, the theory being
that it may be able to exert undue influence and "tip"
the agency to do the foundation's bidding. Is this true? Answer |
| |
| Is
it legal to charge a percentage of gross income from fundraising
as salary instead of a base salary? Answer |
| |
| I
would like to start a nonprofit organization for the spreading
and teaching of the arabic language. A foundation overseas
for spreading the Arabic language makes books that I would like
to sell in order to generate income to support my cause.
Also I would like to open institutes for teaching the language
also for a fee. Would I be able to file for a non-profit
status on these conditions? Answer
|
| |
| Are
meeting minutes, which are distributed, read and approved by
vote of both the Executive Board and the General membership,
a legal document? Are they up for any interpretation if something
is called into question and those that did not agree with what
was reflected in the minutes say that was not they intended
so they aren't going to do it as set forth in the minutes? Answer |
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| Our
nonprofit has two boards: a foundation and exceutive board.
Some members are on both boards & actually influence both
boards, irrespective of bylaws. Is this practice legal and acceptable?
Answer |
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| Our
theater company just became a 501(c)(3). Some of the members
only want members on the board, but others believe the board
should have "outsiders" who are "disinterested"
parties. No one gets paid, but we believe members are
somewhat "interested" and therefore a board with members
only will not be acceptable for public funding. What do you
think? Answer |
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| We
have a home owners association that has filed only State requirments
and received the exemption but have never filed for federal
exemption. Is this organization valid? Answer
|
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| Can
I open a nonprofit but not be tax exempt? Answer |
| |
| A
friend and I were asked last year to open and run a food pantry
by a lady who has a food pantry in another county. We have been
running it under her and her 501(c)(3). She has told us she
wants to close her food pantry and we must close ours. How do
we continue running our pantry and get a 501c3 status of our
own? We would now like to continue under the name of her organization.
Answer |
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| Can
a 501(c)(3) take a sabbatical as an organization to regroup?
Answer |
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| Some
grant funding mentions 501(c)(3) status and we are a clinic
that is part of a law school. Do we need to apply for
501(c)(3) status in order to get grant funding? Does the
educational institution status of the law school count? Answer |
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| I
think the organization I just took over is 501(c)(3) but I can't
find a certificate or anything in the materials handed down
to me from last year's president. How might I go about obtaining
a certificate? Answer |
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| I
would like to use an online store to sell items for a profit
so that we may raise funds. Should I be concerned about tax
problems connected to our income? Answer |
| |
| I
am currently working for a 501 (c) (3) organization and we are
looking to replicate the model in other sites. Will the 501
(c) (3) status carry over to the replicated organization or
will papers need to filed again? Answer |
| |
| Does
the Fair Labor Standards Act (FLSA) apply to a 501(c)(3)? Answer |
| |
| A
group of us located in Maryland are looking into starting a
Church. I am a little confused as to whether or not the Church
can be an LLC if in the future it may become 501(c)(3). Answer |
| |
| We
have sent our child to ABC Christian school. At the beginning
of the year, the "President" of the school board told
us that the host XYZ church which contributed funds to the school
would be reducing its contribution 20% per year and that we
(THE ABC SCHOOL) had to stand on our own two feet within the
next several years. As a result, parents doubled their charitable
donations and many of us gave thousands in goods, cash and services
way beyond the tuition payment. The school hosts an annual big
fund raiser and at the conclusion of the fund raiser, the hosting
xyz church board closes down the school and keeps the money.
On investigating the status of the school which was advertised
as being separate from the church as in its own 501(c)(3) with
its own board of directors, we find out that such is not the
case. The school as such never existed but was actually part
of the church. What can we do? Answer |
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| What
is the process for turning a for-profit company into a non-profit?
Answer |
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| I
am a board member for a high school aquatics booster club and
I am wondering how to go about getting replacement proof of
our 501c3 filing/status for fundraising purposes. We hav |
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