Support Group Paperwork

[OnwardMike at aol.com]

In a message dated 4/4/99 12:10:45 PM Pacific Daylight Time, 
RFowler855 at aol.com writes, in part:

<< we have 
 some donations from folks that could care less about writing it off on their 
 taxes.  But this doesn't address the need for recognition under 501(c)(3)
 
 I run into folks that would like to donate some bucks yet would like the 
 benefit of being able to legally write the donation off on their taxes.  
Heck 
 I would like to too :-) There are also those businesses that insist on a Tax 
 ID to verify the validity of the group as well as for their accounting. >>

Ralph, Dan and all,

What many small, embryonic organizations do is find a friendly "sister" 
organization that has 501(c)(3) status (this refers to the section of the 
Internal Revenue Code that enables one to deduct for tax purposes 
contributions to organizations so qualified) that agrees to pas through 
without a handling charge any money given to you.  

A new organization could try such a simple arrangement -- a handshake will do 
and no paperwork is needed if your organization trusts their organization and 
there are not large sums involved -- for awhile.  If the donations turn out 
to be numerous and/or large, one has time to get one's own 501(c)(3) at 
leisure and later.

Such an arrangelent is prefectly legal, from all that I know.  The qualifying 
organization that receives the money on your behalf can do any reasonably 
"charitable" thing with it, including funding another organization.

Disclaimer: I am neither a lawyer or an accountant, so the above is 
information I gathered "on the street."

Michael B.