discuss: Should LDP apply for non-profit status (was Re: VolunteerMatch ...)
Subject:
Re: [discuss] Should LDP apply for non-profit status (was Re: VolunteerMatch ...)
From:
Rick Moen ####@####.####
Date:
17 Apr 2007 19:10:37 -0000
Message-Id: <20070417191032.GA21603@linuxmafia.com>
Quoting David Lawyer ####@####.####
> I'm sure I read the above and thought it was from the IRS. I've just
> Googled and found another statement that one needs to be incorporated
> to get tax-exempt status from the IRS. But I also checked a detailed
> publication by the IRS about getting tax exempt status (501c, etc.).
> It seems that you don't really need to be incorporated but you must
> have an "organizing document" which might be our Manifesto.
Once again, there are _many_ categories of USA-tax-exempt non-profit
organisation defined in Internal Revenue Code section 501(c), and each
has its own regulatory requirements. The category you are likely
thinking of is 501(c)(3) -- charities. Quoting IRS Publication 557
("Tax-Exempt Status for Your Organization") as to its wording about
501(c)(3) charities:
To qualify, the organization must be a corporation, community
chest, fund, or foundation. A trust is a fund or foundation
and will qualify. However, an individual or a partnership will not
qualify.
If you want to deal intelligently with these matters, read and
comprehend IRS Publication 557. (Please note the reasons why
applications for _any_ of the 501(c) categories are pretty nearly
pointless unless your non-profit organisation brings in over US $25,000
per year in revenues. Make sure you understand the annual reporting
requirements.)
> So it seems that it might be possible to get tax-exempt status without
> incorporating.
My vague recollection is that the _other_ categories, aside from
charities, do not require incorporation or a similar type of
organisational vehicle. However, Publication 557 has details.
