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From: "Rodney W. Grimes" <rgrimes@GndRsh.aac.dev.com>
Message-Id: <199606110442.VAA20052@GndRsh.aac.dev.com>
Subject: Re: -Stable, credit card donations to FreeBSD, Inc.
To: imp@village.org (Warner Losh)
Date: Mon, 10 Jun 1996 21:42:21 -0700 (PDT)
Cc: jkh@time.cdrom.com, terryl@ienet.com, angio@aros.net, davidg@Root.COM,
        stable@freebsd.org
In-Reply-To: <199606110209.UAA16562@rover.village.org> from Warner Losh at "Jun 10, 96 08:09:17 pm"
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> : Just to clarify this once more: If there were enough money coming in
> : to offset the headache of the additional bookkeeping, I'd do it (and
> : if I do, anyone who's donated in the last 24 months can get a
> : back-dated tax donation credit - I checked this out).  However, we
> : need to get over the threshold first! :-)
> 
> 
> ballpark, what's that figure, per year:
...
> 
> I know that we have a smallish non-profit-like thing we're running
> here (the village) and at $2500/yr it is about 10x too small to go the
> 503c route.

This won't answer your question above, but your $2500/yr company is
so small by 10x it doesn't even have to _file_ a return:

IRS publication 557, section 2, Annual information Returns:
	Every organization exempt from federal income tax under
	section 501(a) must file an annual information return except:

        ...

	10. An exempt organization (other than a private foundation,
	discussed in chapter 3) having gross receipts in each tax
	year that normally are not more than $25,000.  (See the
	instructions for Form 990 for more information about what
	constitutes annual gross receipts that are normally not
	more than $25,000.)

Furthermore, if you are operating this ``smallish non-profit-like''
in compliance with the IRS code section 501(c)(3) you are _infact_
automatically exempt, and do not even have to file the dreaded Form 1023:

IRS publication 557, section 3, subsection ``Organizations Not Required
to File Form 1023'':

	Some organizations are not required to file Form 1023.
	These include:

	Churches, interchurg organizations of local units of a ....

	Any organization (other than a private foundation) normally having
	annual gross receipts of not more than $5,000 (see Gross receipts
	test, later).

	These organizations are exept automatically if they meet the
	requirements of section 501(c)(3).


Anyhow, anyone who is in anyway serious about setting up a 501(c)(3)
should get a copy of IRS publication 557, avaliable from the IRS's www
site in pdf and ps formats.  Warner, you should probably get it as well,
as I am quite sure your ``village smallish non-profit-like thing'' is
probably a fully qualified tax-exempt organization.

-- 
Rod Grimes                                      rgrimes@gndrsh.aac.dev.com
Accurate Automation Company                 Reliable computers for FreeBSD