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| *Ostroff, Fair and Company>>>Government & Non-Profit |
Non profit organization? |
A non profit was established in the city of Lowell, MA as to help train many poor and/or disadvantaged people in Cambodia. As of right now, its status was approved by the state, while the 501(c) (3) is still pending. Can this non profit organization collects donation, such as cash to help relieve the poor in Cambodia without any IRS paperwork? Is it legal to do that? Please advise me. You need a tax credit I.D. number before you can do it. When you purchase items there are forms to be filled out. You will not be able to purchase anything without this number. The vendor will not get the tax credit, so in turn he wont give it to you. The vendor has to submit your tax credit form to receive his tax credit. You can call the State office, and ask them if it can be retroactive if you save all your receipts till you do get the I.D. number. I worked for a non profit organization too. It may take up to a year or more to get the IRS ruling. If you ask for outright donations now, then you risk fines. You also risk alienating future donors when you're unable to give them a tax credit right away. Nonprofits that are producing goods and services, I believe, could operate right away. A nonprofit that's in the business of simply fund raising would have to wait for the proper paperwork to seek out donations. A Minnesota site about nonprofits. It has great general information about nonprofits and the rules and regulations they must follow: http://www.mncn.org/info/basic_char.htm#... Some information for your state dealing with nonprofits. http://www.hurwitassociates.com/l_s_init... |
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