| Legal requirements for NOT FOR PROFIT status [message #1375] |
Mi, 13 April 2005 18:27 |
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http://not-for-profit.org/page2.htm
Congress and the Internal revenue service have determined that only specific
types of organizations can qualify to be nonprofit, or tax exempt
organizations. ("Tax exempt is the term used for nonprofit by the IRS and most
other government agencies.)
Types of Tax Exempt Organizations
The following list is exhaustive, but does not discuss any of the limitations
upon the activities of such organizations, which in many cases are
considerable. Also, some organizations of the types listed may not qualify for
non-exempt status for various reasons specified in the Internal Revenue Code
or regulations, or common law as determined by the Courts. The Nonprofit
Resource Center strongly suggests that, if you are considering forming a tax
exempt organization, you consult with an attorney familiar with the law of
nonprofit and tax exempt organizations.
Certain corporations organized under an Act of Congress
Certain corporations organized and operated exclusively for:
Religious purposes
Charitable purposes
Scientific purposes
Purposes of testing for public safety
Literary purposes
Educational purposes
Artistic purposes
Health care and public health
Fostering national or international amateur sports competition
The prevention of cruelty to children or animals
Civic leagues or organizations not organized for profit but operated
exclusively for the promotion of social welfare
Local associations of employees, the membership of which is limited to the
employees of a designated person or persons in a particular municipality, and
the net earnings of which are devoted exclusively to charitable, educational,
or recreational purposes
Labor organizations
Agricultural or horticultural organizations
Business leagues
Chambers of commerce
Real-estate boards
Boards of trade
Professional football leagues
Clubs organized for pleasure, recreation, and other nonprofitable purposes
Certain fraternal beneficiary societies, orders, or associations
Voluntary employees' beneficiary associations providing for the payment of
life, sick, accident, or other benefits to the members of such association or
their dependents or designated beneficiaries
Teachers' retirement fund associations of a purely local
Certain benevolent life insurance associations of a purely local character
Cemetery companies owned and operated exclusively for the benefit of their
members or which are not operated for profit
Corporations chartered solely for the purpose of the disposal of bodies by
burial or cremation which are not permitted by their charter to engage in any
business not necessarily incident to that purpose
Credit unions without capital stock organized and operated for mutual purposes
and without profit
Insurance companies or associations other than life if the net written
premiums for the taxable year do not exceed $350,000
Corporations organized by certain association for the purpose of financing the
ordinary crop operations of such associations
A trust or trusts forming part of a plan providing for the payment of
supplemental unemployment compensation benefits
A post or organization of past or present members of the Armed Forces of the
United States, or an auxiliary unit or society of, or a trust or foundation
for, any such post or organization
Legal services corporations
Trusts for the purpose of satisfying liability for claims under Black Lung
Acts
Multi-employer trusts created to pay any amount described in section 4223(c)
or (h) of the Employee Retirement Income Security Act of 1974
Corporations or trusts organized for the exclusive purposes of acquiring and
holding title to real property for the benefit of a qualified pension, profit
sharing, or stock bonus plan
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