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DesideriScuri -> RE: Simple solution. NO MORE NON-PROFITS (5/15/2013 6:00:33 AM)
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quote:
ORIGINAL: SilverMark Perhaps more scrutiny, but it would harm real charities that do social good and that wouldn't work for me. Should political entities hold the same status as charitable organizations hold tax exempt status, might be a better question. Obtaining tax exempt status quote:
The Importance of Federal Tax Exemption Section 501(c)(3) of the Internal Revenue Code (IRC) is the most common provision under which land trusts seek federal income tax exemption. Obtaining Section 501(c)(3) status is all important, since it provides other benefits in addition to income tax exemption, including; - Eligibility to receive tax-deductible charitable gifts under IRC section 170;
- Exemption from federal employment taxes;
- Likelihood of similar exemption from state and local taxes; and
- Bulk postal rate privileges.
Qualifying for Exemption To qualify for 501(c)(3) status, your non profit must be organized and operated exclusively for "exempt purposes." Such purposes may include scientific, educational, and charitable endeavors. The non profit's net earnings may not be distributed to its directors, members, or any individual. And it must comply with certain restrictions placed upon lobbying and other "political" activities. I am not posting this specifically for you, Mark. I'm posting it just in case anyone reading this stuff doesn't know exactly what is being talked about. The issue at hand here is that you are allowing a highly partisan group (government) to decide what "educational endeavor" qualifies as an exempt purpose. Depending on the Administration in power, that decision can change. Farglebargle's "solution" will cut out the partisanship of that process altogether, but it will also ruin quite a few social charities, as you mentioned. I have to wonder if anyone will accuse him of being against the poor, the elderly, etc. over it.
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