Quote:
Originally posted by *KK*@Oct 21 2003, 01:08 PM
The better idea, if I were setting it up, would be to get an escrow account with a reputable law firm
501© 3 does not afford the same tax benefits as a 4 if I am not mistaken -
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An excellent suggestion about going with Escrow approach, I had not thought of that..... it touches upon the idea that if people are motivated right now, they should contribute now.. but if i wait til weeks/months later, that spark to pledge, might be gone due to financial situations or whatever. A good idea... though, having additional expenses of an attorney and escrow are not desireable. I am looking for intent, and to know full well that a percentage of the pledges won't come through as donations for their own reasons.
Your org's charter is different than mine in classifications:
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LOBBYING ACTIVITY:
Generally, 501 ©(4)s may engage in unlimited lobbying activity, whereas 501 © (3)s may only lobby on an insubstantial basis.
DEDUCTIBILITY OF CONTRIBUTIONS:
There is no limit on how much a corporation or individual may contribute to a 501 © (3) or 501 ©(c4). However, a contribution to a 501 ©(3) may be deducted as a charitable contribution from the contributor's taxable income, whereas contributions made to 501 ©(4)s are not tax-deductible.
POLITICAL ACTIVITY:
A 501 ©(3) is absolutely prohibited from making politicalcontributions or expenditures to a candidate or PAC, including in-kind contributions.
Under very limited circumstances, a 501 ©(4) may make expenditures on behalf of a federal candidate, but as an incorporated organization, it is generally prohibited from making contributions or expenditures under federal election law.
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My charter would classify as a 501©3 with contributions being tax-deductible.. this important to get funds from companies, especially larger contributions so they can write it off.
Fight the Patent!