501(c)3 - anyone one do it recently, there is a new 'short form' we are looking at.

[Mike Switzer]

Unfortunately, I can't see what the 1023-EZ form looks like without creating an account on irs.gov

Here is the link to 1023-EZ

http://www.irs.gov/pub/irs-pdf/f1023ez.pdf

[PaulDow]

Wow; it doesn't look like they want to see the bylaws anymore. I can't see how an application could be rejected if you checked all the boxes correctly.

[Dave Hill]

Is you chapter organized as a Non-Profit in MN? If so, you are already a 501c3 by statute. There is a great deal of misunderstanding about being a 501c3. I'm an Accountant by trade and we (being me doing all the leg work) just formed our new chapter - Elk City EAA Chapter 1553 Inc. EAA chapters that operate according to the 501c3 laws are 501c3's by statute - not by application! The issue of being a 501c3 in the eyes of the IRS is whether or not the organizations gross receipts (INCOME for selling something or providing a service) is subject to income taxes - not whether or not donations are tax deductible. Donations are tax deductible when given to organizations that don't pay income tax and the purpose of the organization is other than to make a profit. This brings me to the first EAA requirement that your chapter file in your state as a Non-Profit Organization. Secondly, your chapter must apply for a federal tax ID number using an SS-4 (online) and one of the questions will be are you non-profit? All non-profits must file annual 990 INFORMATIONAL returns to the IRS. If you chapter has less than $50,000 in gross receipts it can file a simple 990-N electronic post card INFORMATIONAL RETURN. The IRS will send out a reminder and there is not penalty for filing late. If your chapter does not file the 990-N within 3 years of being formed you can lose your tax exempt status, but you get it right back when you file the 990-N's. In my opinion the IRS intentionly scares people. Congress has ruled that you are a 501c3. If you operate a non-profit and you keep good records you have nothing to worry about.

[dougbush]

Is you chapter organized as a Non-Profit in MN? If so, you are already a 501c3 by statute. There is a great deal of misunderstanding about being a 501c3. I'm an Accountant by trade and we (being me doing all the leg work) just formed our new chapter - Elk City EAA Chapter 1553 Inc. EAA chapters that operate according to the 501c3 laws are 501c3's by statute - not by application! The issue of being a 501c3 in the eyes of the IRS is whether or not the organizations gross receipts (INCOME for selling something or providing a service) is subject to income taxes - not whether or not donations are tax deductible. Donations are tax deductible when given to organizations that don't pay income tax and the purpose of the organization is other than to make a profit.

I don't agree with this advice. Mr. Hill, please cite the statute you are referring to. And please tell why you think donations to all nonprofits are deductible.

[PaulDow]

It's my understanding that there's a difference between nonprofit, and not for profit organizations. A nonprofit is to have a charitable purpose, and then donors may take a tax deduction for their contributions. A not for profit can be something like a VFW or social organization. Providing funds to those types of groups wouldn't allow a deduction.
There are several subcategories within 501(c). "3" is only one of them.

[dougbush]

"Nonprofits" and "not-for-profit organizations" mean the same thing. Many nonprofits are not charities, many are not exempt from Federal income tax, and there are many to which gifts are not deductible as charitable contributions.

[Cary]

When I was in practice and a potential business (profit or non-profit) client came to me for legal advice, I would tell them that they need a good certified accountant and a passable attorney. I qualified for the latter, but they really needed the former. Looks to me like a number of EAA chapters mentioned in this thread (and probably elsewhere) need to follow my advice--GO TO A GOOD CERTIFIED ACCOUNTANT.

Cary

[Charlie Becker]

Just want to make sure that you all know EAA has a webinar on Tax Exempt Basics for chapters scheduled for this Tuesday, May 12, 2015. The presenter is Patti Arthur, a tax attorney that specializes in non-profit work. She has helped many chapters successfully obtain 501(c)(3) status that allows donors to tax a tax deduction. (She helped my chapter 252 obtain 501C3 status).

Sign up at www.eaa.org/webinars

I encourage you all to attend.

[Kim]

Just an update.

We sent in our application on March 17th and according to the letter we got back from the IRS, they approved it on March 25th. We used NTEE 'B99' (part III of the form). We did use the 1023EZ application. Cost was $400 (I am pretty sure about this), payment by 'electronic check' or whatever it is called. Other than the form, there was nothing else sent in and no follow up questions. We were previously a 'Non-profit' with the state and IRS and have been sending in 990N's for a long time.

Only problem was it took us 2 months to find the acceptance letter after someone put it in the airport's payment box!!!!

[Kim]