Difference between revisions of "FOTSC/501c3"

From ATXHackerspace

Jump to: navigation, search
(Created page with "= Information on 501c3 organizations  =")
 
Line 1: Line 1:
= Information on 501c3 organizations  =
+
= Information on 501c3 organizations&nbsp =
 +
 
 +
 
 +
== Problem to be solved ==
 +
 
 +
When ATX Hackerspace was formed the LLC business form was selected as an expedient and as a way to get things going quickly and simply.  As a result we have a form where the LLC can veto any decision of the board or membership.  This worked when we were a small cohesive group because we all know and trust the LLC members.  However, as we grow into a large diverse group, we may be better served with an organizational form that relies less on interpersonal trust and more on clearly defined roles, responsibilities and limits of power.  A 501(c)3 nonprofit may be one way to accomplish this.
 +
 
 +
 
 +
== What is a 501(c)3 ==
 +
501(c)3 refers to a section of the IRS tax code that provides for a noprofit organization limited to (among other things) charitable, educational, and scientific purposes.  501(c)3 organizations are exempt from taxes, and can receive donations on a tax deductible basis to the donor.  Membership fees, however, are not tax deductible.
 +
 
 +
A 501(c)3 can be a "public charity" or a "private foundation".  We would want to be a private charity if at all possible.  Hackerspaces that have organized as public charities include HacDC (Washington), L3Detroit, Noisebridge (San Francisco), Harford Hackerspace (WHERE), Makers Local 256 (Huntsville), HeatSyncLabs (Mesa), and Pumping Station One (Chicago).

Revision as of 19:22, 16 November 2011

Information on 501c3 organizations&nbsp

Problem to be solved

When ATX Hackerspace was formed the LLC business form was selected as an expedient and as a way to get things going quickly and simply. As a result we have a form where the LLC can veto any decision of the board or membership. This worked when we were a small cohesive group because we all know and trust the LLC members. However, as we grow into a large diverse group, we may be better served with an organizational form that relies less on interpersonal trust and more on clearly defined roles, responsibilities and limits of power. A 501(c)3 nonprofit may be one way to accomplish this.


What is a 501(c)3

501(c)3 refers to a section of the IRS tax code that provides for a noprofit organization limited to (among other things) charitable, educational, and scientific purposes. 501(c)3 organizations are exempt from taxes, and can receive donations on a tax deductible basis to the donor. Membership fees, however, are not tax deductible.

A 501(c)3 can be a "public charity" or a "private foundation". We would want to be a private charity if at all possible. Hackerspaces that have organized as public charities include HacDC (Washington), L3Detroit, Noisebridge (San Francisco), Harford Hackerspace (WHERE), Makers Local 256 (Huntsville), HeatSyncLabs (Mesa), and Pumping Station One (Chicago).