Legal Question in Business Law in Florida
Are all non-profit organizations listed and registered with the IRS and does that status have to be renewed? I recently gave a donation to a non-profit religious organization and cannot find any public information about them in any database. I asked the administrator of this organization for the latest publication of the financials and got what seemed to me a very inaccurate balance sheet where the numbers just didn't "add up." I also noticed that this organization sends out mass mail using their non-profit number in the postage area, but using this number I was still unable to locate any public information. Does this sounds fishy, or am I making a big deal about nothing?
1 Answer from Attorneys
First, there is a difference between "non-profit" and "tax-exempt". "Non-profit" is a designation that is provided by the state government where the organization is organized or operates. "Tax-exempt" is a status that is granted by the IRS on qualifying entities. Churches and religious intsitutions the meet the requirements of IRC section 501(c)(3) are given an automatic exemption. Since cherches/religious organizations are granted an automatic exemption under the income tax code, they do not appear in the IRS's public listing of Tax-Exempt Organiztions (IRS publication 78).
There is a distinction bewteen "chruches" and "religious orgaizations". Churches never have to apply for tax-exempt status. Religious organizations must apply ofr tax-exempt status if their gross receipts exceed $5,000 annually.
Many churches voluntarily seek formal recognition for tax-exepmt status to assure their membership and supporters that it does qualify for tax related benefits. In particular, the annual filings help (but not necessarily guarantee) that the church/religious organization is a) organized and operated for religious or other charitable purposes, b) net earnings do not enure to the benefit of any private individual or shareholder, c) no substantial part of its activity is directed at influencing legislation, and d) the organiztion may not intervene in political campaigns.
Of significance to supporters, if a church or religious organization fails to be organized or operated as a religious or charitable organization as desceibed above, the contributions may not be tax deductible.
I do not know enough to say whether the organization is "fishy" but you would be justified in withhoulding support from a religious organization that you don't personally know or does not have proper public credentials.
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