501c3 Compliance

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Taxes

501c3 Organizations must file the 990-N postcard in order to retain their 501c3 Status.

Generating Income

Earmarking Funds

  • See this article for details: http://en.allexperts.com/q/Nonprofit-Law-2266/2010/4/earmarked-funds-individual-project.htm
    • Funds may be earmarked by the donor and the association can make every attempt to honor the earmarking, however the use of all funds remains with the association.
    • Association should never earmark funds as being for a person, only for a cause \ project.
  • https://www.501c3.org/misappropriating-nonprofit-funds/
    • If we tell the public we're raising money for a specific cause and they donate towards it, the money is permanently earmarked for that cause.
      • A 501c3 can put a donation clause in any fund raiser saying they retain the right to reallocate funds.
    • If an individual donates, and declares it is for a specific cause, the money is not permanently earmarked, it's up to the charity what happens to the money.

Notes for Donors

These are notes that Donors may be interested in, but do not effect the organization. It's the tax payer's responsibility to accurately assign a dollar value for any item they are claiming as a charitable contribution on their taxes

  • Must have a receipt for any item, for any value
  • IRS may reject an item valued +$500 if it doesn't have a qualified appraisal document with it. LINK

Related Information