We have an existing 501(c)(3) organization. We are applying for another 501(c)(3) for a similar cause. Can we receive donations to the established one and hold/transfer those donated funds to the new one when we receive our ruling letter from IRS. If so is there a procedure we need to follow?
The existing organization can receive contributions for its charitable purpose and decide to fulfill that purpose by supporting the activities of the newly formed organization. I am not aware of any special procedures that need be followed. The existing organization should retain control of the funds until it is sure that they will be used for an appropriate charitable purpose.
Comments
I am Chair of a 501c4 non profit organization. We provide a town festival 1 time a year . My question is Majority of committee wants to discontinue event . 2 of committee members don't want it to end . We have substantial amount of money left and would like to spend it on 1 time fireworks as an end of the event . 1 of the committee members want to take the event on Majority of committee doesn't want to just pass over money to them . What are our options? Thank you
Thanks for the question. We've answered it in a separate post. See - https://www.nonprofitissues.com/to-the-point/what-should-we-do-about-our-town-festival
Can a nonprofit religious organization sell all of his assets and close the church and then use the proceeds of the sale of the property to to its 40 year board members/employees as a severance/retirement package
Thank for this question - Can a church use proceeds of a property sale to pay staff retirement?
We've answered that in a separate post: https://www.nonprofitissues.com/to-the-point/can-church-use-proceeds-property-sale-pay-staff-retirement
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