From TaxAlmanac, A Free Online Resource
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> Not for Profit Organization
Discussion Forum Index --> Tax Questions --> Not for Profit Organization
Jigisha (talk|edits) said:
| 3 July 2008
|
| A client of mine wants to do a fundraising dinner and contribute the net amount(after expenses) to a cancer research organization. I am not sure how to set up the event. As per my understanding the best option is to apply for Not for profit status.A 501c3 organization. Please help.
|
Fsteincpa (talk|edits) said:
| 3 July 2008
|
| Have the client do it underneath the umbrella of the 501C3 he/she wishes the funds to go to. This way, no issues.
|
Omega1911 (talk|edits) said:
| 4 July 2008
|
| I agree, the forms 1053/54 are STILL monsters to fill out. Even though there has been movement by the IRS to make them less time consuming and confusing (at times), the time requirements, filing fee and response time(as to whether or not you will actually be granted 501C3 status)are not something to be taken lightly. Many organizations wrongly believe that by just getting the SS-4 filled out, and generating an EIN (CHECKED NON-PROFIT), that they are legally a 501C3. The regs' do allow you to operate up a year (or more)in your organization while you apply for the status, but you cannot get the discounts (no 501C3 certificate has been issued) and you cannot claim to be a 501C3 non-profit. Not to mention filing at tax time (990 Series Tax Returns). Apply for it your client wants to do this for the long run, other than that, I agree with both Natalie and Fsteincpa.
|
Lancermc (talk|edits) said:
| 4 July 2008
|
| Fstein is right on. Do it under the 501c3 org that will benefit. The 501c3 can report the income and expenses on there books.
|
To join in on this discussion, you must first
log in.
