[freegeek-startup] Non Profit status, shared?

[That Man Behind the Curtain]

Iain (FreeGeek) Davidson wrote:
> Cool,  I see the implications.  Great idea, I would be happy to have a
> FG-PDX person on our board.  I'll seed the idea and see what happens.
> 
> As we work on getting our own Non-profit status....   and under
> provisional status....
> 
> --- How about this idea?
> 
> We won't be able to offer tax-deductable donations, but others can
> donate to our cause anyways.


If by "provisional status" you mean the IRS has granted you provisional
status, then you can start taking tax deductible donations and giving
receipts for them right away. Provisional status lasts for 3-4 year, I
think. We only got permanent status a few months ago and we've been
taking donations and giving receipts since we opened.


> If they really want to a tax-deductable donation, we suggest that they
> write the check/cash to 'Free Geek-Portland'.
> We'll ship them down to you, and you deposit them with clear record
> keeping, and in return 'grant' us about 98 to 99% of it back. (The 2 to
> 1% is kept as a transaction service expense 'donation' . Or a flat $$$
> amount for each transaction? :)
> 
> I wonder if that's allowed between states ?

That would amount to fiscal sponsorship, and we'd need to formally
decide to do it, which requires a bit more study, and borad approval (at
least). However, I don't think you need to do it. (See above.)


> How did FG-PDX handle tax-deductable issues during provisional status ?
> -iain

There was a short period of time after we opened before we received
provisional status. Since we had applied, we were able to tell people we
could promise them tax deductible receipts on the condition that the IRS
granted us provisional status. This period lasted only 2.5 months or so
back in 2000, and during that time donations were very low, and only a
couple of people even cared.

Since gaining provisional status in November 2000, we gave people
receipts at the time of donation, just as we do now.



-- 
Goodness! People come and go so quickly around here!
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Richard Seymour, That Man Behind the Curtain