Gene Takagi’s Answers

Gene Takagi

San Francisco Tax Lawyer.

Contributor Level 7
  1. Not For Profit Organization

    Answered over 5 years ago.

    1. Gene Takagi
    2. Iram Khan Ansari
    3. Eric A Koester
    3 lawyer answers

    Starting a nonprofit is relatively easy following the mechanical steps. The Citizens Media Law Project provides some references which you may find helpful. If you decide to use the Nolo Press book by Anthonhy Mancuso, make sure you get the one specifically for California nonprofits. Deciding on whether you should start a new nonprofit is a more difficult question. Do you have a plan to create a sustainable organization, including a plan to attract funds in a very competitive market and...

    1 person marked this answer as helpful

  2. Non profit organization funds, boy scout troops use of requirement payments and deposit into general fund

    Answered over 5 years ago.

    1. Andrew D. Richards
    2. David Alexander Phipps
    3. Gene Takagi
    3 lawyer answers

    I agree that answers to many questions, including this one, may be contingent on many variables. Generally, if the payments represented a fee to attend, the campout, there is no prohibition applicable to a 501(c)(3) organization against making a profit from the activity or event. There may, however, be a problem if the organization represented that the payments would only be used on the campout. It seems doubtful on this level (presumably, very modest amounts were involved) that anyone would...

    1 lawyer agreed with this answer

  3. 501c3

    Answered over 5 years ago.

    1. Mohammad Ahmed Faruqui
    2. Gene Takagi
    2 lawyer answers

    Here's a very partial list of compliance issues for 501(c)(3) organizations: No Private Inurement. No part of the organization's net earnings may inure to the benefit of any private shareholder or individual. The private inurement doctrine generally prohibits an exempt organization from using its assets for the benefit of a person having a personal and private interest in the organization's activities (i.e., an insider such as a director, officer or key employee). An organization that...

    1 person marked this answer as helpful

  4. If a 501(c)3 nonprofit solicits funds on the internet, does it need to be registered in all 50 states?

    Answered over 4 years ago.

    1. Gene Takagi
    1 lawyer answer

    This is a complicated question because each state has its own laws regarding registration. You may start by looking at the Uniform Registration Statement site - http://www.multistatefiling.org/. Then, on the issue of internet fundraising, look at the Charleston Principles - http://www.nasconet.org/Charleston%20Principles,%20Final.pdf - adopted by the National Association of Charity State Officials (NASCO).

  5. Does my nonprofit "have current 501(c)(3) status, as assigned by the IRS", if We meet the requirements and are automatically....

    Answered over 4 years ago.

    1. Mark L Rosenberg
    2. Gene Takagi
    2 lawyer answers

    Some organizations may be exempt under Section 501(c)(3) without filing for recognition of exemption under 501(c)(3). This includes organizations with less than $5,000 in annual revenues not required to file Form 990, 990-PF, or 990-EZ; provided that they otherwise comply with all of the requirements under 501(c)(3) (including the organizational and operational tests, the substantial lobbying limits, and the prohibition against electioneering). However, such organizations are now required to...

  6. I am hoping to start a nonprofit. Is it hard to attain IRS exempt status as a nonprofit LLC?

    Answered over 4 years ago.

    1. Gene Takagi
    1 lawyer answer

    You may find the 2000 and 2001 CPE Texts from the IRS helpful: Limited Liability Companies as Exempt Organizations - http://www.irs.gov/pub/irs-tege/eotopich00.pdf and http://www.irs.gov/pub/irs-tege/eotopicb01.pdf (update). Also, here are links to the IRS Limited Liability Company Reference Guide Sheet and Instructions: http://www.irs.gov/pub/irs-tege/llc_guide_sheet.pdf; http://www.irs.gov/pub/irs-tege/llc_guide_sheet_instructions.pdf. Even if you meet the 12 conditions, you'll likely...

  7. Are Nonprofit organizations able to purchase goods from a business that is also owned by the nonprofit organization leader?

    Answered over 4 years ago.

    1. David Keith Stein
    2. Gene Takagi
    2 lawyer answers

    Nobody "owns" a nonprofit, but there may be state law prohibitions against an insider transaction between a nonprofit and one of its directors/officers for which you require local counsel. In addition, there may be federal tax law prohibitions, which may differ depending on the organization's tax-exempt status. Assuming the nonprofit is exempt under Section 501(c)(3) of the Internal Revenue Code ("IRC"), it may be classified as either a private foundation or public charity. If the...

  8. How can I incorporated myself to make the work I do in SA a charity foundation?

    Answered over 5 years ago.

    1. David G. Weilbacher, Esq.
    2. Gene Takagi
    2 lawyer answers

    Forming a nonprofit and applying for exemption under 501(c)(3) is one possibility, as mentioned by the previous respondent. However, if you decide to go this route, do so only with a strong business plan for a sustainable public charity. Fiscal sponsorship through another organization (e.g., Tides Center) may still be an advantageous arrangement over an independent operation. You can read more about fiscal sponsorship at www.fiscalsponsorship.com. Note that operating internationally may...

  9. Non profit organization

    Answered over 5 years ago.

    1. Ken Bradley Dallara
    2. Gene Takagi
    3. Kenneth Allyn Sprang
    3 lawyer answers

    Also note that nonprofit does not mean tax-exempt. You may form a nonprofit corporation by incorporating as a nonprofit corporation, but it may be a taxable entity unless you receive recognition of tax-exemption. Not all nonprofits must apply to the IRS to be tax-exempt; it depends on the nature of your activities and under which section of the Internal Revenue Code you are seeking exemption. There is much involved with forming a charitable nonprofit exempt under Section 501(c)(3). You...

  10. Nonprofit determine its own membership

    Answered over 5 years ago.

    1. Gene R. Berardelli
    2. Gene Takagi
    2 lawyer answers

    There are of course legal membership criteria that are possible (e.g., only lawyers or judges may be members of most bar associations). Your bylaws should be clear in spelling out membership criteria. You will be more exposed to discrimination actions where you are using criteria not in your governing documents.