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We are a group who wish to get cash donations to help its members with bills and etc. Is it best to be unincorporated non profit

San Marcos, CA |
Filed under: Non-profit business

Can donations be accepted before any tax status is recorded

Attorney Answers 2


Your question indicates a very poor understanding of IRS non-profit status. More research on your part is needed. It is not enough for be incorporated as a non-profit, for donations to be tax deductible by the donor, rigid IRS requirements must be met. In that connection, any personal benefits for the "members" would be prohibited.

Best wishes for a favorable outcome, and please remember to designate a best answer.

This answer is offered as a public service for general information only and may not be relied upon as legal advice.

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You need to have an IRS determination that you are a public charity or private foundation, and you need to be aware of the "self dealing" rules and prohibitions on private benefits. Talk with an experienced attorney if you wish to pursue this.

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