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501 (c)(3) - do I need one?

Discussion in 'Off Topic Threads' started by pat drake, Nov 8, 2010.

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  1. pat drake

    pat drake TS Member

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    I need some help. I started an AIM team in NM. In order for us to get a checking acount, I had to get a Federel EIN number. That was pretty easy. I am told that we have to get 501c3 status to have fundraisers. I am also being told that to get any grants, we have to have it. A 501c3 is supposed to take up to a year to get and you have to have board members, meetings, minutes and on and on and on. What in the world do I need to do. Called the IRS, what a joke! We actually pay those people. ANY help would be greatly appreciated.

    Pat
     
  2. Dickgshot

    Dickgshot Well-Known Member

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    You can collect donations before your 501(c)(3) status is approved. Just put "applied for" on any literature you hand out. It shouldn't take that long, I've got some approved in just a few months.
     
  3. pat drake

    pat drake TS Member

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    so I can't have raffles, car washes, etc. without at least having applied for a 501(c)(3)?
     
  4. phirel

    phirel TS Member

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    You can have fund raisers but lacking the 501 (c)(3), the donors cannot claim the donation as a tax deduction. If you make contact with someone with experience getting a 501 (c)(3), the process is not too bad. If you seek one without prior experience, you can get very lost very fast.

    Use caution with raffles. Some stated have laws regulating these.

    Pat Ireland
     
  5. porky

    porky TS Member

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    Make sure that all gifts are noted as donations. When showing any costs for the raffles, show the word "donation" right next to dollar amount.

    Example-- Donation $ 5.00
     
  6. dave-320c

    dave-320c Well-Known Member

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    Hi:

    Thanks for doing some good work.

    My advice is to check with local groups that have a 501C-3 to see if you can find an umbrella charity that offers groups like yours a valid number for donations. Try the Rotary Club, veterans groups, chamber of commerce, and your city hall/council members.

    Regards,

    David Swerdlin
     
  7. ivanhoe

    ivanhoe Well-Known Member

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    I suggest you call Bob Glatz, I am sure he can help you after all didn't he help the ATA a whole bunch???????

    Bob Lawless
     
  8. Dickgshot

    Dickgshot Well-Known Member

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    The IRS permits retroactive elections. Just get your organization formed properly and follow your stated charitable purpose. You'll be O.K.
     
  9. timberfaller

    timberfaller Well-Known Member

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    Another way is to find someone in your area that does small business start ups. The process is easy, you can download the fed doc. off the internet yourself or have that person do it. Its about 28 pages, depending on what affiliation you are attempting to represent.

    You can't use the "applied for" until the form has been filled out and set in. I've been through the process twice, it just takes time and effort.

    You only need one if you are looking for large donations or getting into the government grants that are out there and if you what to claim non-profit.

    Find someone that has done it, I had one organization I was involed with that almost half of the form did not need filled out.

    If you lived in WA state I could get you set up and going pretty easy.
     
  10. Bisi

    Bisi TS Member

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    Insanity! That is our present tax system now. I don't know have an answer for your question.

    The guy wants to have a few car washes and a raffle to raise a little money for youth shooters and he has to get a Philadephia lawyer and a DC tax accountant to do it. WTH???

    Where in the heck did we go wrong?? I don't think they make a fork lift big enough to lift the tax code in this country.

    Time to toss it on the ash heap and start over, with something like the fair tax.

    I wish you luck, but if I had to do all that crap I would forget about it, and watch tv instead.
     
  11. roger8918

    roger8918 Member

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    Incorporate ASAP then apply for tax-exempt status from the Internal Revenue Service. If accepted, the organization is able to accept tax-deductible donations including NRA grants.

    I went through this for my team in 2008. We were blessed by a real Philadelphia lawyer who did the job pro bono. As a remember it did cost about $500 in fees and took about 9 months to complete.

    PM me your number if you would like to discuss.

    Roger
     
  12. ivanhoe

    ivanhoe Well-Known Member

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    Bisi it would appear that the liberals have found a fair tax. If memory serves me correctly a number of the liberal politicians that were selected for one(cabinet)office or another in the present administration.

    Simply didn't pay them or were delinquent. Of course that is them not the policy for the rest of us.

    Bob Lawless
     
  13. Joe Potosky

    Joe Potosky Well-Known Member

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    Why does he have to re-invent the wheel...

    You would think at this point in time that AIM and/or SCTP would have all the issues worked out and posted to a webpage, as I'm sure more than a few youth orgainizations have already gone this route. Time to pass on the knowledge!
     
  14. timberfaller

    timberfaller Well-Known Member

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    Where did we go wrong? Elected in the wrong people and then turn around and put them back in!

    Raffles are considered gaming, and with what the tribes have been doing, of course the Feds had to get involed to get their cut! I don't remember any historical pictures of the tribes having casinos all over the country.

    A flat tax would do away with alot of this garbage!
     
  15. ivanhoe

    ivanhoe Well-Known Member

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    "You would think at this point in time that AIM and/or SCTP would have all the issues worked out and posted to a webpage"

    Joe he did ask about AIM Team didn't he??? If so isn't that governed by the ATA and again if so isn't the ATA a 501(c)(3) corp.??? If that is the case isn't it possible that the ATA's tax status is usable in this case.

    The only way to find out is to ask the ATA. I know there I go thinking outside the box again, forgive me I thought someone else here might be able to think for themselves and at least ask the ATA.

    Bob Lawless
     
  16. Bob Hawkes

    Bob Hawkes Well-Known Member

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    Bisi has it right, and you would think Joe Potosky's thought's would work.

    The NGO's of the various shooting sports are not any help in this matter other than telling you "how simple it is and you must have your own, not under their umbrella".

    It is not that simple, you need to be lucky and have an attorney volunteer for you, and after you have that status you need to conform to Federal tax laws and filings on an annual basis. Who wants that responsibility for free?

    Then you get into what types of fundraising are legal in some states and not others, permits required, report filings,etc.

    Bisi is correct. We have met the enemy and it is us. What a shame.
     
  17. Dickgshot

    Dickgshot Well-Known Member

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    I can understand being P.O.'d with the government in general, but the rules for governing tax exempt status for charities are there for a reason. Without them, everyone who wanted to form a charity for his own favorite cause could do so with no limitations. - and no control.
    I would start a charity to help pay for my own trapshooting, and all donations would be tax deductible.
    I hope you see the point.
     
  18. 870

    870 Well-Known Member

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    A few have given good advice above, many have not. Best advice was to try to find a professional, preferably at a gun club etc. that might help for a reduced or no fee. It isn't really a terrible ordeal, but if you are not used to dealing with government forms and regulations, you will need some help.

    You will not be able to fall under the umbrella of another organization such as the ATA or anyone else.

    You should incorporate under your state's not for profit law. The corporation should apply for 501(c)(3) status (if that is what you want) and you have to operate accordingly. You will probably not have a great amount of income so the annual 990-N might be applicable (which is nothing at all to handle). Your state may have more requirements if you are soliciting donations.

    The first question I have is what entity received the EIN that you already received?
     
  19. Big Heap

    Big Heap TS Member

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    Some free advice at this site, maybe worth just what you pay for it.
     
  20. timberfaller

    timberfaller Well-Known Member

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    What I should have asked Pat, Are you starting a club? Team is a different term. If you are starting a club, yes a 502 C3 is a big help.

    Find someone who'es been through the process, there are a lot of questions on the form that will cause you scratch your head and say "What the .......!"
     
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