This page collects information on the 501(c)(3) (charitable organization) applications process, under the assumption that we are going to try for that. See also LegalEntityType and LegalEntity.

Why

1. GNHLUG is already a legal entity in the eyes of the State of NH (registered non-profit corporation) and the US Federal government (EIN).
2. GNHLUG will be receiving income. That includes not just monetary donations, but equipment and services (like Internet hosting).
3. The IRS tracks income and collects taxes on it.
4. To avoid GNHLUG having to pay taxes on our income, we can obtain Federal tax-exempt status. 501(c) is the section of the tax code that deals with that.
5. For donations to GNHLUG to qualify as tax-deductible for the donor, we need to obtain 501(c)(3) charitable organization status.

To Do

Decide: Being 501(c)3 ourselves vs being under the umbrella of an existing org?

We need to have (Ed Lawson, 14 Mar 2008 05:52:03):

• organization structure
• budget and projections
• proposed endeavors/mission statement

Resources

Local resources

Franklin Pierce Law Center
C/O Ashlyn Lembree

• has been contacted by Ed Lawson (14 Mar 2008 09:30:58)
• something a student may want to tackle
  
• first chance summer 2008
  

Ed Lawson

• Use an umbrella org (14 Mar 2008 05:52:03)
• don't hound him until 28 April 2008 (14 Mar 2008 07:49:43)
• work on providing Ashlyn the info they need to evaluate the situation (ibid)
• he will remind the clinic in late May 2008 (op cit 09:30:58)

Possible umbrella organizations

• LNF (Learning Networks Foundation) (Carole Soule)
• SPI (Software in the Public Interest) (they back Debian)
• LI (Linux International) (maddog) (did they ever get this off the ground?)

IRS material

Forms

Short Title	Full Title	Purpose	Status
Form SS-4	Application for Employer Identification Number	Identifies us to the IRS	Completed
Form 1023	Application for Recognition of Exemption	Proves to the IRS we are a charitable organization	Not started
Form 8718	User Fee for Exempt Organization Determination Letter Request	Determines and submits fee for applicaton	Not started

Guidance

• Publication 557, Tax-Exempt Status for Your Organization
• Publication 1771, Charitable Organizations, Substantiation and Disclosure Requirements (PDF)
• Publication 4220, Applying for 501(c)(3) Tax-Exempt Status (PDF)
• Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities (PDF)
• Instruction 1023, Application for Recognition of Exemption (PDF)
• Sample Organizing Documents - Public Charity

Notes

• If annual gross receipts are < $25K, we are not required to file an annual return. (Annual Return Filing Exceptions)