Recent Answers to 501c3 Application Law Questions
Can a nonprofit organization with a pending 501(c)(3) application receive tax-deductible donations?
Tax
501c3 Application
New York
I am part of a nonprofit organization that has submitted a 501(c)(3) application to the IRS, but we are still awaiting approval. In the meantime, we have been receiving donations from individuals and corporations who want to support our cause. We would like to know if these donors can claim tax deductions for their contributions, considering that our application is still pending and we have not yet obtained official tax-exempt status.
Damien B.
Hello! Contributions are not tax deductible now but will be if your application is approved. You must inform the donors that the application is pending and that contributions are not tax-deductible at this time. After the application is approved, you must request retroactive tax deductibility. If you have additional questions, let me know. Best regards.
What are the steps involved in forming a nonprofit entity?
Administrative Law
501c3 Application
California
I am currently involved in a community project aimed at providing education and resources for underprivileged children. We have been operating as an informal group for some time now, but we feel that it's time to formalize our efforts by establishing a nonprofit entity. However, we are unsure about the legal requirements and steps involved in forming a nonprofit organization, including the necessary paperwork, tax-exempt status, and any potential liabilities. We want to ensure that we are following the correct procedures and fulfilling all legal obligations, so we are seeking guidance on the process of nonprofit entity formation.
Dolan W.
Hello! Thank you so much for asking this question. So the process is involved, but here are the six basic steps: 1. Define your mission, develop a strategic plan, and choose a unique name for your non-profit. 2. Assemble a qualified board of directors, ensuring compliance with the 49% rule and prioritizing independence. 3. Prepare and file the articles of incorporation, clearly outlining the organization's purpose and dissolution plan. 4. Draft comprehensive bylaws to guide the organization's governance and operations. 5. Obtain an Employer Identification Number (EIN) and fulfill registration requirements with the CA Attorney General's Registry of Charitable Trusts and the Secretary of State. 6. Apply for federal tax exemption using IRS Form 1023 or 1023-EZ and complete CA FTB Form 3500 or 3500A for state tax exemption. Best of luck in your endeavor to provide these things to the kids!
Why do attorneys keep turning me down for my case?
Accounting
501c3 Application
Illinois
I keep looking for an attorney for my discrimination case. This is what I tell them: "I'm a black woman working for a governmental agency who is being treated different than my white and/or male co-workers. I'm paid the same salary for my category, but, my treatment is worse.They are changes rules based on race, also.". The attorneys turn me down or tell me it's not discrimination.
Talin H.
I'm sorry that's happening to you and I can imagine that that's frustrating. There are unfortunately a lot of instances in which we legitimately experience discrimination, but it wouldn't meet the high bar of the LEGAL definition in court. I suggest seeking out a black, or better yet, black female attorney who might be more empathetic to your lived experience.