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IRS Rejects 501c3 Status!

Started by Michael Fisher, September 02, 2005, 01:52 PM NHFT

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AlanM

I was President of the Board of Directors of the New England Shakespeare Festival when they decided to seek government grants, at which point I resigned.

AlanM

Consistency of action and thought is important. Working outside the system can be more difficult, but not impossible. Having a Scholarship Fund whose goal is pulling students out of the system by using the system? It doesn't ring true to me.

tracysaboe

trying to figure out how to not pay taxes is a little different from "supporting the system."

Tracy

AlanM

Tracy, I said using the system, not "supporting" the system.

Michael Fisher

Quote from: AlanM on September 04, 2005, 10:18 PM NHFT
Dave, if the LSF should get 501c3 status, I will not donate again, nor will I encourage others to donate, such as through the Arts Festival. I am sick and tired of people begging the Government for special interests.
Now do the math Dave.

We have lost several donors and gained several enemies by applying for 501c3 status in the first place.? I say we drop it and get creative with fundraising.

Tracy, we would need $200,000,000 per year in income to give $1,000 to the family of each New Hampshire child to help them get out of public schools.? No amount of tax deductions will raise that much money, as Arizona has proven.? ;)

Russell Kanning

Quote from: davemincin on September 04, 2005, 10:13 PM NHFT
Well that may be so in some cases Alan, but let's not forget real world too!

One example, the $1000 donation I mention. ?The dollars are in a retirement account, and only way the
money can be released with out penalty...per 59 1/2 10%, plus being charged as regular income to the
donor is being a 501c3 charity. ?Hey...Do the Math! ??? ?Play the system to our benefit! ;)

What is the real world? the IRS tax code ...... the government schools ...... begging the government for non-profit status

Very few people know that even if you are playing the IRSs games ..... that an organization doesn't have to be a 501c3 for your payment to be considered a charitable contribution.

But then again most people don't know that the whole income tax is smoke and mirrors

Choose your reality ..... I choose real people helping others escape the evil government

Lloyd Danforth

If we can't or won't jump thru the required hoops to get this status, what is the point of this argument?
How much of the money the LSF raises is from large donations people are likely to deduct and how much from dollars thrown into a jar, barely remembered much less deducted?
Could, as Russell implies, a donor who is not donating an insanely large amount, take the deduction and not get caught?
I have some ideas that involve making and selling things to raise money for the LSF, which seems to me a reasonable way to increase it's coffers.

AlanM

If everyone who supports or participates in the FSP were to contribute an average of $100 oer year, there would be at least $700,000. Add to that activities designed to raise money such as Lloyd describes, and the total would be closer to $800K. That is a strong statement for altrnative education.

Michael Fisher

Quote from: Lloyd Danforth on September 05, 2005, 06:23 AM NHFT
If we can't or won't jump thru the required hoops to get this status, what is the point of this argument?

Good point.  ;)


Quote from: Lloyd Danforth on September 05, 2005, 06:23 AM NHFT
How much of the money the LSF raises is from large donations people are likely to deduct and how much from dollars thrown into a jar, barely remembered much less deducted?

Only one or two donors give more than $50 at a time.


Quote from: Lloyd Danforth on September 05, 2005, 06:23 AM NHFT
Could, as Russell implies, a donor who is not donating an insanely large amount, take the deduction and not get caught?

I don't know, but it's not our responsibility to know that.  Deducting a donation on a donor's taxes is the choice of each donor.  As an organization, we do not encourage people to break the law.


Quote from: Lloyd Danforth on September 05, 2005, 06:23 AM NHFT
I have some ideas that involve making and selling things to raise money for the LSF, which seems to me a reasonable way to increase it's coffers.

That's a great idea!  What type of products or services do you have in mind?  :)

Michael Fisher

Quote from: AlanM on September 05, 2005, 06:30 AM NHFT
If everyone who supports or participates in the FSP were to contribute an average of $100 oer year, there would be at least $700,000. Add to that activities designed to raise money such as Lloyd describes, and the total would be closer to $800K. That is a strong statement for altrnative education.

I openly encourage everyone to give $15 per month.  We can do a much better job asking for money than we have been doing.  Kat and Russell's table is the first to gather donations from non-FSP, non-LP, non-NH Underground individuals.  It's obviously possible to do this type of fundraising as well - they're doing it!  :) :) :)  They lead very well by their example!

How can we go about getting all 7,000 FSP members to donate $10/month to the LSF, or even just $10?  I believe a rejection of 501c3 status will definitely help us in this regard.

Pat McCotter

What about the "income" of the LSF? Doesn't the I R S want their cut?? :(

Michael Fisher

#41
Quote from: patmccotter on September 05, 2005, 02:09 PM NHFT
What about the "income" of the LSF? Doesn't the I R S want their cut?? :(

Good point.

Looking into this further, the fed still wants its taxes even if we're a tax-exempt non-profit corporation at the state level.? Thus, we do need to apply for a special federal status as well.? sigh

However, rather than a tax-deductible 501c3 charity, we must apply to become only a 501c4 tax-exempt non-profit so at least we won't have to pay federal taxes.? ?:(

Look in here for info about 501c4 requirements:
http://www.irs.gov/pub/irs-pdf/p557.pdf

I thought state non-profit status made us exempt from all state and federal income taxes.? :(? This is really annoying.? :(

Michael Fisher

Argh, this is driving me insane.  So many problems with solutions that conflict with my conscience.  So little time.   :o

Michael Fisher

Upon further thought, I believe we were required to file federal income taxes last year. ::)

sigh

Michael Fisher

Oh yeah, BTW, we are required to respond to the IRS' letter by TOMORROW!!!   :o :o :o

Isn't it nice of them to give us 3 whole days to decide from the time we receive the letter?   :(

So we'd better come up with a plan right now.