Doesn't the relative ease of it depend on what state you are setting up in? ----- Original Message ----- From: Doanld Lutz <pegadon@earthlink.net> To: <NJMONMOU-L@rootsweb.com> Sent: Sunday, March 26, 2000 9:07 AM Subject: Re: [NJMONMOU] Types of Tax Exempt Organizations > Of course, there is more than one type of tax exempt organization. I set up > a 501C(4) organization for the fishing club. We are tax exempt, but > donations to us are not tax exempt. The C(4) status is relativly easy to > get. The type of status depends on your fund raising and use of funds > intentions. > Don Lutz > Virginia Beach > ----- Original Message ----- > From: Carhart, Lowell <LC111162@exchange.DAYTONOH.NCR.com> > To: <NJMONMOU-L@rootsweb.com> > Sent: Sunday, March 26, 2000 2:05 AM > Subject: [NJMONMOU] Types of Tax Exempt Organizations > > > > Folks, > > > > It is worth knowing that creating a tax exempt organization is not quick, > > cheap, or easy. Forming a legal corporation in NJ *is* very quick and > easy, > > and has but a modest fee. However, applying for tax exempt status, > > submitting the required annual reports, and maintaining the proper ratio > of > > small and large donors *is* very time-consuming and expensive. For > example, > > the entity could not maintain its 501(c)(3) tax exemption status with just > a > > few large private donors. The law requires a somewhat complicated ratio > of > > small to large donors. This is to prevent rich folks from forming their > own > > non-profit companies and then funding/running them on their own. By > > requiring a broad range of donors, this sort of abuse is curtailed, and > also > > increases the likelihood that the non-profit will benefit a wider group of > > people. There are certain exceptions to the funding rule when the > > only/largest donor is a government agency. However, the aim here I believe > > is to get private (non-government) funding. If that is the case, then > > attempting to form and run a non-profit for the sake of $1,500 would not > be > > cost-effective. It would cost more than that just to incorporate, pay > > set-up fees, and pay for accountants to maintain the paperwork, and > > certainly none would go to the project at hand. > > > > I learned all this from my efforts to form the Topanemus Society which was > > *going to be* a non-profit to help restore and maintain the Topanemus > > Cemetery. There was no way that I was going to get 100 - 200 folks to > donate > > ~$20 a year to maintain the correct small donor / large donor ratio, even > > though I already had three $500 annual donors lined up. Even having those > > three donors and a handful of small donors was not enough to preserve the > > 501(c)(3) non-profit status. Also, you don't get the 501(c)(3) status > > awarded for several years after applying. The government is not making it > > easy to not pay taxes. <wink> > > > > Kind regards, > > Lowell > > > > > -----Original Message----- > > > From: Teddies96@aol.com [SMTP:Teddies96@aol.com] > > > Sent: Saturday, March 25, 2000 9:38 PM > > > To: NJMONMOU-L@rootsweb.com > > > Subject: [NJMONMOU] Check out Types of Tax Exempt Organizations - IRS > > > > > > <A > HREF="http://www.irs.ustreas.gov/prod/bus_info/eo/eo-types.html">Click > > > > > > here: Types of Tax Exempt Organizations - IRS</A> > > > > > > Hi. I would think it best to apply for tax exempt status on our own and > > > then > > > we could take checking into funding further. Here is a link to tell you > > > more > > > about who is qualified for tax exempt status. > > > > > > Fayth > > > > > >