Pages
5 through 8 - Part VIII - Specific Activities Page 5 - Part VIII - Question 1 - Political
When the
IRS uses the term "political" here, they specifically mean
support of, or opposition to, a candidate for public
office. This is
an activity that is strictly prohibited for 501(c)(3) organizations.
Page 5 - Part VIII -
Question 2 - Lobbying
While supporting or opposing individuals who are seeking public
office is political activity,
prohibited under 501(c)(3), supporting
or opposing legislation is permitted in limited amounts. Federal tax
law
has two options for lobbying 501(c)(3) organizations. Filing an
election to be treated as a lobbying 501(c)(3) alerts
the IRS to the
fact that your group might be lobbying, but in return your organiza-
tion is subject to more generous
lobbying limits. If your group does
not make the election (or is ineligible to make the election), it is
only
allowed "insubstantial" amounts of legislative activity. For
additional information on lobbying, see the discussion
of lobbying
in the section of this website called Keep the IRS Happy.
Page 5 - Part VIII - Question 3 - Gaming
Bingo games are not subject to unrelated business income tax, but
other gaming activities may be. For more information
on unrelated
business income tax see the section of this website called Keep the
IRS Happy. The IRS has noted
a number of abuses in this area.
Page 5 - Part VIII - Question 4 - Fundraising
These questions are designed
to uncover a number of abuses that the
IRS has noted in fundraising.
Page 6 - Part VIII - Question 5 - Government-affiliated
Government-affiliated organizations are outside the scope of this
website. If you are planning to engage in this type
of activity, you
should seek professional help in preparing your 501(c)(3) application.
Page 6 - Part VIII
- Question 6 - Economic Development
Economic Development organizations are outside the scope of this
website.
If you are planning to engage in this type of activity,
you should seek professional help in preparing your 501(c)(3)
application.
Page 6 - Part VIII - Question 7 - Development
These types of organizations are outside
the scope of this website.
If you are planning to engage in this type of activity, you should
seek professional
help in preparing your 501(c)(3) application.
Page 6 - Part VIII - Question 8 - Joint Ventures
Joint Ventures
are outside the scope of this website. If you are
planning to engage in this type of activity, you should seek
professional
help in preparing your 501(c)(3) application.
Page 6 - Part VIII - Question 9 - Child Care
Child Care organizations
are outside the scope of this website. If
you are planning to engage in this type of activity, you should seek
professional
help in preparing your 501(c)(3) application.
Page 6 - Part VIII - Question 10 - Intellectual Property
These
issues are outside the scope of this website. If you are
planning to engage in this type of activity, you should seek
professional help in preparing your 501(c)(3) application.
Page 7 - Part VIII - Question 11 - Conservation
Easements, etc.
These issues are outside the scope of this website. If you are
planning to engage in this type
of activity, you should seek
professional help in preparing your 501(c)(3) application.
Page 7 - Part VIII
- Question 12 - Foreign Operations
Activities that are charitable within the meaning of section 501
(c)(3) when
carried on within the United States also qualify for
exempt status under 501(c)(3) when carried on in foreign countries.
Page 7 - Part VIII - Question 13 - Grants, Loans, etc.
Many 501(c)(3) organizations contribute money to
other charitable,
educational, or similar organizations, rather than engaging in
direct charitable activities
themselves. Because 501(c)(3) requires
an organization to dedicate its assets to charitable purposes, most
grant-making
charities will only make grants to other 501(c)(3)
organizations. But Federal tax law does permit 501(c)(3)s to make
grants to non 501(c)(3) organizations, as long as the charitable
organization retains control over the use of
the funds and maintains
records showing that the funds are used for exclusively charitable
purposes.
Page
7 - Part VIII - Question 14 - Grants, Loans, etc. to
Foreign Organizations
The IRS will generally deny a 501(c)(3)
application from a group
formed to support a named charity in another country. If your group
makes
grants to foreign charitable organizations, you will have to
show the IRS that your organization is not controlled by,
or other-
wise obligated to transfer donations to, any foreign entity. Since
2001, the entire question of grants
to foreign charitable organiza-
tions has been further complicated by fears that money sent to
foreign charities
may end up in the hands of terrorists.
Page 7 - Part VIII - Question 15 - Connections with Other
Organizations
This question appears to be designed to uncover areas of perceived
abuse. Close connections with other 501(c)(3) organizations
should
not cause problems, but close connections with for-profit entities,
or with organizations that are tax
exempt under a paragraph of
501(c) other than 501(c)(3), could. The IRS may also be checking to
see if your response
to this question is consistent with answers to
Part VII or Part VIII, Questions 4b, 4c, or 8, and others.
Page
8 - Part VIII - Question 16 - Cooperative Hospital Service
Organizations
Cooperative Hospital Service Organizations
are outside the scope
of this website. If you are planning to engage in this type of
activity, you should seek
professional help in preparing your
501(c)(3) application..
Page 8 - Part VIII - Question 17 - Cooperative
Service Organizations
of Operating Educational Organizations
Cooperative Service Organizations of Operating
Educational Organiza-
tions are outside the scope of this website. If you are planning to
engage in this type of
activity, you should seek professional help
in preparing your 501(c)(3) application..
Page 8 - Part VIII -
Question 18 - Charitable Risk Pools
Charitable Risk Pools are outside the scope of this website. If you
are
planning to engage in this type of activity, you should seek
professional help in preparing your 501(c)(3) application..
Page 8 - Part VIII - Question 19 - Schools
Schools are outside the scope of this website. If you are planning
to engage in this type of activity, you should seek professional
help in preparing your 501(c)(3) application..
Page 8 - Part VIII - Question 20 - Hospitals
Hospitals are outside the scope of this website. If you are
planning
to engage in this type of activity, you should seek professional
help in preparing your 501(c)(3) application..
Page 8 - Part VIII - Question 21 - Housing
Housing activities are outside the scope of this website. If
you are
planning to engage in this type of activity, you should seek
professional help in preparing your 501(c)(3)
application..
Page 8 - Part VIII - Question 22 - Scholarships
Scholarships are outside the scope of this
website. If you are
planning to engage in this type of activity, you should seek
professional help in preparing
your 501(c)(3) application..
