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Our non profit charitable 501C3 donated most of our donation income to another 501C3. Is there any problem with this?

Asheville, NC |

We donated the majority of our income (which was all donations to our organization) to another 501c3 which has a similar mission. Is there any restriction on giving the funds we raised to another 501c3 charitable org.?

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Filed under: Tax law
Attorney answers 1


Probably not. There are a number of 501(c)(3) charities: public charities, private foundations and private operating foundations. Each of these has specific tax rules applying to them. Generally a 501(c)(3) will be required to pay a certain amount of their funds toward charitable purposes which may include gifts to other charities. You will want to consult with a CPA or tax attorney if you have more specific questions.