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Are fundraising donations and contributions to a 501c6 tax deductible?
Wiki User
∙ 13y ago
Contributions to section 501(c)(6) organizations are not deductible as charitable contributions on the donor's federal income tax return. They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business.
Wiki User
∙ 13y ago
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How is Inurement different with a 501c6?
I assume your question is asking for a comparison of the insurement prohibition in section 501(c)(6) organizations with that for 501(c)(3) organizaitons. It is not different. It is prohibited for both. Neither organization may use any part of its net earnings to insure to the benefit of any private shareholder or individual. A section 501(c)(3) organization is, generally, a charitable one not organized for profit, and can include schools and sports to a certain extent. A section 501(c)(6) organization would include business leagues, chambers of commerce, real estate boards, boards of trade, and professional football leagues, which are not organized for profit. The principal difference between the two is the contributions to a 501(c)(3) generally are eligible for a charitable donation for the donor. Those to a 50(c)(6) are not eligible for a charitable donation -- although such contributions may be deductible as ordinary and necessary business expenses.
What are the annual paperwork and filing requirements for a nonprofit corp?
Not-for-profit status is determined by your state laws when the organization is formed. Tax-exempt status is recognized by the IRS based on information submitted to it. That is the only way to obtain such status officially. There are multiple categories provided under section 501(c) of the Internal Revenue Code (IRC). Being a not-for-profit company may or may not have an effect on sales tax and franchise tax filing, depending on your state, and on what type of tax-exempt status you have - that is, whether you are 501c3, 501c6, etc. You need to check with your state comptroller's office or state secretary of state. You may have to file a federal form 990 tax return depending on the organization's annual gross income, although these regulations change from time to time. State income or other tax return requirements will vary be state. If a non-profit organization solicits for donations having a "charitable purpose", the state attorney general's office may require registration and annual reporting of how the money was collected and disbursed. These are the basics, although the potential scenarios are too varied to be any more specific. It really depends on your state and the IRS status. If the non-profit organization is involved in any regulated industry, there may be additional annual licensing or reporting requirements. For example, a fire department may need to certify its membership list to a state agency annually, or complete some on-going licensing requirements.
