CDEV 3113 Lecture Notes - Lecture 2: Fiscal Year, Employer Identification Number, Registered Agent
24 May 2020
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Allowed to participate in politics, but not primary focus. Must spend less than 50% of their money on politics. Churches exclude from form 1023 requirement - exempt from federal tax, receive tax deductible contributions. Advantageous to file - obtain recognition of exemption. Purposes: aiding scientific education of college students; published for public; attempting to discover cure for disease; aid community/geographic area - attracting new industry. Charity - private foundation (unless satisfies irs definition of public charity) Section one: churches, schools, hospitals - organizations that receive public support through gifts, grants, contributions. Section two: organizations with support from gifts, grants, contributions, fees from exempt services. Section three: supporting organizations - support other public charities, governmental units; public charity status because of relationship, ignores source of income. No owners; no distribution of profit; no private benefit to management/board. Dissolution - assets transfer to like entity . Commensurate test - charitable activities within scope of resources.
