Ellis McGehee Carter’s Answers

Ellis McGehee Carter

Phoenix Business Attorney.

Contributor Level 8
  1. Procedure for setting up non profit organization and taking online donations, 501(c)(3)

    Answered about 6 years ago.

    1. Ellis McGehee Carter
    2 lawyer answers

    If the organization has not applied for tax-exempt status by submitting an application for exemption using Form 1023 to the IRS, then it is not exempt. Contributions may be made to it, but they will not be deductible by the donor. If the organization has submitted an application for exemption and recieved a determination that it is exempt under Section 501(c)(3), then it should not matter that the majority of its funds are spent on legal fees if those fees are reasonable and necessary to...

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  2. Procedure for setting up non profit organization and taking online donations, 501(c)(3)

    Answered about 6 years ago.

    1. Ellis McGehee Carter
    2 lawyer answers

    If the organization has not applied for tax-exempt status by submitting an application for exemption using Form 1023 to the IRS, then it is not exempt. Contributions may be made to it, but they will not be deductible to the donor. If the organization has submitted an application for exemption and recieved a determination that it is exempt under Section 501(c)(3), then it should not matter that the majority of its funds are spent on legal fees if that is the organization's primary program....

    1 lawyer agreed with this answer

    3 people marked this answer as helpful

  3. Are taxes incurred on monetary gifts given to a non profit homeowners association

    Answered almost 6 years ago.

    1. Ellis McGehee Carter
    1 lawyer answer

    Certain types of income may be exempt for a home owners association if it makes an 528 election. This is an annual election that should generally be considered by the association's CPA every year. Depending upon the association's sources of income, it may be more favorable to be taxed as a taxable corporation in some years and as a partially tax-exempt organization under Code Section 528 in other years.

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  4. What is the process for setting up and starting a 501 c 3, non profit organization

    Answered over 5 years ago.

    1. Ellis McGehee Carter
    1 lawyer answer

    The legal steps are as follows: • Make sure the chosen name is available and reserve it. • Prepare the governing documents which include articles of incorporation and bylaws for non-profit corporations. The articles and bylaws should explain how the Board of Directors is chosen: by Board vote, by designation by an individual or entity, by a membership, or through some combination of these. • The articles must be signed by the incorporator and filed with the appropriate state agency....

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  5. Does having seperate EIN #'s affect incorporation?

    Answered about 5 years ago.

    1. Ellis McGehee Carter
    1 lawyer answer

    Each separate corporation should have its own EIN number. If there is only one corporation conducting the different chapters as activites under different trade names, it would be in error to have more than one EIN. Also, you should not apply for an EIN prior to forming a corporation. The EIN won't technically apply to the corporation your forming if when you applied for it the corporation did not exist.

  6. Is it legal to receive a tax deduction for donations to non profit organizations

    Answered over 5 years ago.

    1. Ellis McGehee Carter
    1 lawyer answer

    The rules governing deductibility of charitable gifts are surprisingly complex. Assuming the charity is a valid 501(c)(3) organization, a legally binding requirement that specifies the identity of the scholarship recipient destroys the deductibility of the gift. There is an old case that says "charity ends where certainty begins." Thus, earmarking or legally designating a gift for a specific person would generally make the gift non-deductible by the donor. It is possible, however, that a...

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  7. Does it violate any regulation regarding tax exempt non-profit organizations if they give a religious title to a community event

    Answered almost 6 years ago.

    1. Kennard Neal Friedman
    2. Ellis McGehee Carter
    2 lawyer answers

    I don't know of any law specific to non-profits that would bar this practice; however, I could see a religious discrimination employment claim developing out of this scenario. Also, the non-profit risks alienating constituents who are not Christian.