<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=us-ascii">
<TITLE>Message</TITLE>
<META name=GENERATOR content="MSHTML 8.00.6001.19190"></HEAD>
<BODY>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial>1. Richmond Tea Party applied for a 501(c)(4)
application. That's social welfare designation. The local Tea
Party's are probably 527 eligible, like your local Democratic or Republican
parties. IMVHO 501(c)(4) is probably not acceptable. Clearly they've not
provided sufficient justification.</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial>2. There are 28 501(c)(X) tax designations, all exempt from
federal income taxes on income/receipts related to their stated purposes.
Unrelated income remains taxable.</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial>3. Only one category is charitable, 501(c)(3), the stated
purpose must answer the question "what is the public benefit?" which is the core
reason for existence, the public benefit. All others are mutual benefit
organizations, thus not charitable. Quick and dirty see <A
href="http://en.wikipedia.org/wiki/501%28c%29_organization">http://en.wikipedia.org/wiki/501%28c%29_organization</A></FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial>4. The IRS only implements the program. Congress is
responsible for the tax code. If tax credits for donations were allowed,
rather than deductions, the 501(c)(3) could be an very democratizing social
dynamic. One purpose of tax exempt organizations is to bring to communities
needed opportunities and services while keeping the size of government at
bay. A very good idea.</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial>5. I sit on the national board of a 501(c)(3) as a Vice Chair
and Secretary. A committee I chair is assisting chapters of our
organization with their own determinations as they are not under our
national umbrella. Some chapters of organizations are able to act under
national umbrellas. One such is the Rocky Mountain Elk Foundation. I
also sit on the board of my local computer users group. When I was
president, we successfully filed for a 501(c)(3) determination. I would do
it a bit differently now that I have some experience in such
matters.</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial>6. I highly recommend the following two books for becoming an
informed board member of an organization acting as or seeking a 501(c)(3)
determination. They are not how-to manuals, those are also
available. You don't need a lawyer unless the local bar is willing to
provide pro bono advice, but a non-profit accountant may be useful, but
<U>only</U> after you become informed. </FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial></FONT></SPAN> </DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial> a. <A
href="http://www.amazon.com/Starting-Managing-Nonprofit-Organization-Management/dp/047139727X">http://www.amazon.com/Starting-Managing-Nonprofit-Organization-Management/dp/047139727X</A>,
Starting and Managing a Nonprofit Organization, Bruce R.
Hopkins.</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial> b. <A
href="http://foundationcenter.org/marketplace/catalog/product_monograph.jhtml?id=prod10065&navCount=1&navAction=push">http://foundationcenter.org/marketplace/catalog/product_monograph.jhtml?id=prod10065&navCount=1&navAction=push</A> The
Board Member's Book, Brian O'Connell.</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial></FONT></SPAN> </DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial>7. FACT. The National Football League is a tax exempt
organization under section 501(c)(6), as a business league.</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial>8. You can gain some insight into nonprofits, tax exempt
organizations, searches, and rules by becoming familiar
with</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial></FONT></SPAN> </DIV>
<DIV><SPAN class=202243713-17022012> <FONT color=#0000ff
size=2 face=Arial>a. <A
href="http://www.irs.gov">www.irs.gov</A></FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012> <FONT color=#0000ff
size=2 face=Arial>b. <A
href="http://www.melissadata.com/lookups/np.asp">http://www.melissadata.com/lookups/np.asp</A> register
for more lookups</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012> <FONT color=#0000ff
size=2 face=Arial>c. <A
href="http://www2.guidestar.org">http://www2.guidestar.org</A> register for
free to view Form 990's, etc</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012> <FONT color=#0000ff
size=2 face=Arial>d. Various Secretary of State business/corporate entity
searches</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2
face=Arial></FONT></SPAN> </DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2 face=Arial>Frank
Whiteley</FONT></SPAN></DIV>
<DIV><SPAN class=202243713-17022012><FONT color=#0000ff size=2 face=Arial>IANAL
nor an accountant, just a volunteer</FONT></SPAN></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #0000ff 2px solid; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px"
dir=ltr>
<DIV></DIV>
<DIV dir=ltr lang=en-us class=OutlookMessageHeader align=left><FONT size=2
face=Tahoma>-----Original Message-----<BR><B>From:</B>
clue-bounces@cluedenver.org [mailto:clue-bounces@cluedenver.org] <B>On Behalf
Of </B>M Paul Webb<BR><B>Sent:</B> Friday, February 17, 2012
06:26<BR><B>To:</B> CLUE's mailing list<BR><B>Subject:</B> [clue]
501(c)3<BR><BR></FONT></DIV>
<DIV
style="BACKGROUND-COLOR: #fff; FONT-FAMILY: verdana, helvetica, sans-serif; COLOR: #000; FONT-SIZE: 12pt">
<DIV><SPAN>Here is an interesting news article on how the IRS can cause pain
over 501(c)3 status, by making formal recognition difficult.</SPAN></DIV>
<DIV><SPAN><A
href="http://www.weeklystandard.com/blogs/claim-irs-won-t-grant-richmond-tea-party-tax-exempt-status_629931.html">http://www.weeklystandard.com/blogs/claim-irs-won-t-grant-richmond-tea-party-tax-exempt-status_629931.html</A><BR></SPAN></DIV>
<DIV><BR></DIV>
<DIV>I just did a fast check on the internet, and apparently, the IRS says
that normally filing the form for formal recognition takes 4 hours to
understand, and 8 hours to fill out. I believe all the forms and information
can be found on line. Actually, I think it should be do-able, but it is just a
matter of time. I think I could invest some time on this, if there are people
who want to do it -- I mean working as a small group. Let me know.</DIV>
<DIV><BR></DIV>
<DIV>(I don't think I understand who my e-mails are going to when I send
them).</DIV>
<DIV><BR></DIV>
<DIV>Paul</DIV>
<DIV><BR></DIV>
<DIV style="FONT-FAMILY: verdana, helvetica, sans-serif; FONT-SIZE: 12pt">
<DIV
style="FONT-FAMILY: 'times new roman', 'new york', times, serif; FONT-SIZE: 12pt">
<DIV dir=ltr><FONT size=2 face=Arial>
<HR SIZE=1>
</FONT></DIV><BR></DIV></DIV></DIV></BLOCKQUOTE></BODY></HTML>