Need Immediate 501c3?
Do You Need an Immediate 501c3?
We have a solution for such a situation. We have a tax-exempt 501c3 that can receive the donation. It isn’t worthwhile to receive donations smaller than $50,000, but sometimes the donations are much larger. Sometimes an individual or grant-making organization is motivated to give the recipient a large donation but is constrained by rules that state that grants can only be given to a 501c3, not one in process with the IRS. This can be especially true near the end of the year as donors want to make a tax-deductible contribution and receive the tax benefit in that year. Once our 501c3 receives the donation in secured funds from the donor, it remits 90% of the donated amount to the new organization that does not yet have its 501c3. The donation should not exceed 20% of the donor’s Adjusted Gross Income.
We can do this for you PROVIDED:
(1) that you have a nonprofit corporation and you have an application in process with us to the IRS. If you do not yet have this, we can perform our normal expedited service for incorporation and get the IRS application on its way within about a week in most states;
(2) that you must always use your best efforts to obtain 501c3 tax-exempt status or be liable for any negative tax consequences from the IRS to us and to the donor;
(3) that if you are not a client of ours, your donor must sign a waiver that holds us harmless in the event that the organization does not obtain 501c3 tax-exempt status and the donor suffers any negative tax consequences. This puts some onus of supervision on the donor, as we are not in a position to supervise your best efforts to obtain 501c3 tax-exempt status and supervise the funds after they leave our 501c3 nonprofit. The donor very often is close to the organization and can assure himself that the donee does not use the funds for a non-tax-exempt purpose.