Are you sure you aren't referring to yourself there?

I think anonymity as a concept is very important to free and open discussion. In other forums we've concluded it's essential to protect the voice of the most fragile, marginalized and important voices. However that definitely does not describe the other common use of anonymity.
http://teenormous.com/t-shirts/Internet ... de-1017250

Further, we know all about the foamer who stops by to tell us we're doing it wrong. With any luck they will have the decency to say HOW, so we can double check on the 2% chance that they're right.

So here you are Superheater, famously anonymous... famously flamish and trollish... this time spending 8 paragraphs telling how we're beneath your help instead of helping. I'm sorry, were you saying something about usual suspects?

And on top of it you're plain wrong on the one example you "deign" to give.

There's nothing a state can do to make a corporation a nonprofit (of the 501(c) type, which is what we are talking about here.) The state is not capable of conferring that status. 501(c) is a Federal status. You obtain it by you filing a 1023. The state does not file it for you, doesn't even help.

It is true, though, that everything is connected. When you incorporate, the state will want to see articles of incorporation. You write those. The state sometimes "helps you write them" by strongly encouraging or even mandating certain boilerplate language. It may even have different boilerplate for profits vs. non-profits, but the ultimate choice is yours alone. The state may not accept it easily, or at all, if you deviate too much.

Later when you file for 501c3 tax status, the IRS will also want to see those same articles of incorporation and see if they agree with your Form 1023 and valid reasons for 501c3 status. So you need to think ahead enough that they do tie together. I find it useful to rough out the 1023 before writing the articles. IANAL but I'm out there actually doing it. YMMV.

Of course the states confer state benefits to nonprofits. Duh. That's not the same as conferring nonprofit status. You know, a hotel gives me 10% discount because I'm AAA... that's not the same as conferring AAA membership. States defer to the Federal designation. Additional formalities, perhaps... but they DON'T have a redundant "State Form 1023" to establish state nonprofit status independent of the Feds. That would be stupid, insane and wrong on so many levels.

Further, we know all about the foamer who stops by to tell us we're doing it wrong. With any luck they will have the decency to say HOW, so we can double check on the 2% chance that they're right.


Except for the lawyers that occasionally post on this board, I'm pretty sure I'm the only one holding a license that authorizes me to practice before the IRS. In your analogy, I'm the qualified guy and no, I'm not giving you my number.

So here you are Superheater, famously anonymous... famously flamish and trollish...



Actually, I'm not anonymous. I'm semi-disclosed. If I trust you and respect you-you get to know my undistinguished "real identity"-which is sometime after you get a business card that says "SUPERHEATER" with an email contact. Besides, the whole pseudonym thing has been beaten to death. If you feel comfortable betting that a future employer or client won't "google" you and take issue with you-have at it. When I'm retired or when the office lottery pool comes in, I'll think about signing my name.


this time spending 8 paragraphs telling how we're beneath your help instead of helping. I'm sorry, were you saying something about usual suspects?


If you think 8 paragraphs is lengthy, its only because of your unfamiliarity with the tax code and regulations. Look, I don't expect Kelly Anderson or the rest of the Strasburg boys to use this board to educate me on their engineering and mechanical practices-because I don't have the prerequisite knowledge. Its enough that they describe and show what they are doing and remind those of us without requisite mechanical skills that "trying this on your own could result in an explosion". Its the same with tax.


And on top of it you're plain wrong on the one example you "deign" to give.

There's nothing a state can do to make a corporation a nonprofit (of the 501(c) type, which is what we are talking about here.) The state is not capable of conferring that status. 501(c) is a Federal status. You obtain it by you filing a 1023. The state does not file it for you, doesn't even help.

Nice try, but you are conflating two separate issues (nature of incorporation and federal tax exemption) and nobody in their right mind would ever said the state helps you with a 1023, so what are you talking about?

States defer to the Federal designation.


Not in my state. You will notice that there is REFERENCE to the Internal Revenue Code, but not DEFERENCE. In PA, you can't just say I'm 501c3 and raise money-you need to meet a whole list of requirements that are different than the IRS.

[url]http://www.dos.state.pa.us/portal/server.pt/community/charities/12444/the_institutions_of_purely_public_charity_act/571856
[/url]


Note Sec 375(d)(1)(C).


(C) The institution provides uncompensated goods or services at least equal to 75% of the institution's net operating income but not less than 3% of the institution's total operating expenses.



But since you were one of the parties dispensing information incorrectly, let me just give you an idea why you need a 230 qualified person to assist you. Small organizations that qualify for “transitional relief” under Procedure 2011-43, do indeed need to refile a 1023-BUT it requires the following:


A small organization seeking the transitional relief described in this notice
must write “Notice 2011-43” on the top of the form it uses to apply for
reinstatement of tax-exempt status and on the envelope.
http://www.irs.gov/pub/irs-drop/n-11-43.pdf

But you said:

“but my SWAG here is those groups could simply file another Form 1023”

Of course its not just the conspicuous labeling-In other cases, more (such as an 1120) is required. Now if the last three letters of your acronym is “wild *** guess”, well guessing doesn’t cut it with the IRS.


Additional formalities, perhaps... but they DON'T have a redundant "State Form 1023" to establish state nonprofit status independent of the Feds. That would be stupid, insane and wrong on so many levels.

Actually in PA (and I suspect other states, indeed do just that) note the following:

If your organization is soliciting contributions from Pennsylvania residents and is not excluded or exempt, it must file a BCO-10 registration statement for its most recently completed fiscal year; a copy of its IRS 990 return; and the appropriate financial statements within 30 days of receiving more than $25,000 in gross national contributions or prior to compensating someone to solicit contributions from Pennsylvania residents.
[url]
http://www.portal.state.pa.us/portal/se ... 847&mode=2[/url]

This is why you get a QUALIFIED professional for any job. And like the kid in the Verizon tablet commercial, my work here is done. (SSSIP)