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? on 501(c)(3) requirements and IRS employee taxes

Discussion in 'Shooting Related Threads' started by likes-to-shoot, Jan 5, 2011.

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  1. likes-to-shoot

    likes-to-shoot Well-Known Member

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    Could someone help me find some info. I'm looking for?

    I believe somewhere I read that if your club is 501c3 they still have to pay Fed taxes on anyone who is compensated by $100 or more. Could that compensation also be in benefits at the club that aren't afforded to the general membership?

    Also the board of directors seem to have board meetings held in different places unknown to the general membership and if there are any minutes taken they aren't available to the membership.

    The financial statements are shoddy to say the least and there are no open records options for the general membership.

    Now that you are getting my drift I believe there is a set of rules set by the IRS stating the requirements to stay in compliance but I can't seem to find what I need. Could some one be so kind as to lead me in the right direction?

    Thanks Bill
     
  2. Allen-MX8

    Allen-MX8 Member

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    Check out the above link to IRS. Click at the top on "Charities & Non-Profits".

    You should be able to find the informtion you need there.

    If not, consult a professional Tax Accountant.

    Regards,
    Allen
     
  3. Dickgshot

    Dickgshot Well-Known Member

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    501(c)(3)organizations have no special rules for employees, except salaries have to be reasonable. Employees are required to have taxes withheld on their salary, and payroll tax returns have to be filed. Other benefits are generally taxable,unless they meet certain exceptions.
     
  4. SMITH47

    SMITH47 Member

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    It would be very unusual for a gun club to have a 501(c)(3) status which is usually reserved for religious and educational organizations. Recreational organizations can qualify for 501(c)(4)and other similar classifications which are still a (not for profit status). Then u may have the sale of shells and supplies which is not considered part of your not for profit purpose. Good financial records and tax professional can take care of these issues.

    Sounds as if you have other organizational problems that a coup d'etat can fix.
    Get a group of people together and get elected to your board and TAKE CONTROL OF YOUR CLUB..the difficult part is finding the people who have the backbone to participate in the revolt !! we did it a couple of years ago and it will always be a struggle to keep the evil doers at bay >>

    John Adams son asked him about public service ? He told his son "if honest and honorable men don't do it someone will"

    good luck,
    ernie
     
  5. 221

    221 Banned User Banned TS Supporters

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    Non-Profits are rampant in the US. Every day I see more and more of them boasting about their status.

    Non-Profits need to be a charity, and that only, It's high time we revoke about 95% of them.
     
  6. 870

    870 Well-Known Member

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    Although I agree it is questionable for most clubs, there are many gun clubs w/ 501(c)(3) determinations.

    As far as open records, you can request a copy of their Form 990, and they have to let you review it. Only problem is if they are very small, they might only file a 990N which doesn't show any useful info. If they don't file a 990 series return, they have some problems ahead of them. The returns are available online also.
     
  7. 1881home

    1881home TS Member

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    Does any of the above apply to the ATA? There not a charity organization. With all the news that came out right before this years grand, regarding President and EC compensation, and $16,000 gun, seems they, the ATA would be effected.
     
  8. likes-to-shoot

    likes-to-shoot Well-Known Member

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    Noodle,,, some of the information I've found about 501 requirements is that it is legal to have paid employees as long as income tax withholding requirements are meet.
     
  9. likes-to-shoot

    likes-to-shoot Well-Known Member

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    Thank you Gary. Your time spent in answering my question is appreciated.
     
  10. TP Express

    TP Express TS Member

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    Gary, you are correct, the IRS has no rules about board meetings and openess. However, most states do have regulations on those issues. Many states require the organization file a copy of their by-laws with them, as well as a biannual filing of the corporate officers of the non-profit. A visit to your state's website, or call to the Secretary of State's office, may give you the information you need. And my opinion for what it's worth; if your current Board will not provide the membership with financial statements and copies of the Board minutes then get them out and change the locks while there is still something to salvage.

    Someone who has been there.
     
  11. Allen-MX8

    Allen-MX8 Member

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    One other comment, the new threshold to file a form 990-N (electronic filing only) is now $50,000.

    That is to say if a 501(c)(3) or a 501 (c)(4) organization has less than $50,000 in gross receipts then the form 990-N can be filed.(Might apply to other types of exempt organizations as well--I am only familiar with the (c)(3) and (c) (4)'s)

    In fact I just filed one today for an organizatio that I am the treasurer of and it only took a very few minutes to file.

    Allen
     
  12. 870

    870 Well-Known Member

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    Just to clarify a point made above about what types of entities make up 501(c)(3)'s, and the main point in regard to the ATA, is that 501(c)(3) includes not just the charitable orgs listed above but also those whose purpose is to foster national or international amateur sports competition. I think the ATA fits that bill, just like the NSSA.
     
  13. halfmile

    halfmile Well-Known Member

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    If you have unknown board of directors' meetings and other precedural issues that relate to transparency, your club must not have a very good set of by-laws. Check your state's laws and your club's articles of incorporation. You can get a copy from the secretary of State if not through the club.

    A gun club can be a c3 if they give substantial amounts of the proceeds to other charities. We are, and we do. We sponsor all the organizations, turkey, pheasant, whitetail, DU, on and on. We also made a substantial contribution to the local wildlife sanctuary, etc. You need these things in case they review your status.

    The last Federal Audit we had let us keep the c3, however we had to withhold taxes and file on the E Board compensation (which wasn't much).

    HM
     
  14. 1881home

    1881home TS Member

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    Has anyone tried to obtain, or received, a form 990 from the ATA, or your state trapshooting association?
     
  15. 870

    870 Well-Known Member

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    I've read them.
     
  16. abbielew

    abbielew TS Member

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    Hey Likes to shoot.

    It have hit the same topic
     
  17. abbielew

    abbielew TS Member

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    Hi: Likes to shoot a lot

    Sounds like your gun club is the same as the one we have here in minnesota.

    They keep everyting quiet and if you ask any questions, they try and paint
    you as a trouble maker.

    If you want to talk, more we can exchange phone numbers and
    talk further.

    The bigest things about clubs like this, is you need to keep digging and
    probing and you will keep digging up more and more crap.

    abbielew
     
  18. likes-to-shoot

    likes-to-shoot Well-Known Member

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    abbielew, I'll keep that in mind. I went to a board meeting (after a lot of digging around to find where it was) and things were interesting. lol Only got intimidating and attitude comments from one person. A lot of circling the wagons from the rest. lol Looks like public clubs with private benefits arn't only here in Iowa. Thanks for the support.

    Bill
     
  19. GunDr

    GunDr Well-Known Member

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    Our club up here in Walker, MN, is a 501 c3. We do donate to the local charities and events like the local kids' fishing contests, Habitat for Humanity, free league shooting for the kids, and support three area law enforcement depts with free use of the ranges..rifle and handgun.

    As for the board meetings, they are open to any member to attend. If they have a request for the board, it's usually granted when the board has completed with their business.

    On our website (which has an email address), our By-Laws are posted along with the Articles of Inc. Also all of the board minutes are posted once they have been approved by the board the following month.

    The previous BODs never allowed access to the monthly minutes, and pretty much ran things "hush-hush". When the club started operating in the red, things changed very fast. New, much more conservative members were elected. Most of our board now consists of business owners and the club is run like a business. We do have employess so we do with hold taxes, pay unemp Ins, and workmans comp. No board members get paid.

    In three years we were able to climb out of the red and have the most profitable year this last year.

    If you would like to visit the website, here it is....nssclub.org

    Doug
     
  20. abbielew

    abbielew TS Member

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