[BC] Underwriting as a source of income

[ChuxGarage at aol.com]

I'm not sure where 501(c)(6) has come into the conversation.  That is a 
totally different thing. As far as I know, the only nonprofits that are tax 
deductible are 501(c)(3)'s.  Most noncommercial broadcasters are (c)(3)'s.  Donations 
to those are deductible.  I've been on the Board of Directors of three of 
these nonprofits, and President of two. My experience is much different.  They 
were not particularly difficult to establish.  Mind you they were not religious 
organizations, and they all have a very clear educational purpose. They also 
played by the rules. 

It is true that after you are approved by the IRS for 501(c)(3) status, you 
are subject to an audit at the end of your third year.  Generally, it is not 
the kind of audit where somebody from the IRS makes a personal visit.  It is 
usually done by mail, and it helps to have them coordinate this with your CPA.  
They just want a review of your balance sheet for the previous three years.  If 
all is well, they send you a letter confirming the continuation of your 
not-for profit status.  Of course, if you are skimming money off for personal gain, 
or doing something else that doesn't pass the sniff test, then you may have 
bigger problems.

Having 501 status does not exempt you from filing taxes. Under certain 
circumstances, you may even need to pay taxes.  There is no free lunch.

Chuck Conrad
KZQX Radio
www.kzqx.com 

In a message dated 2/1/2009 11:13:47 PM Central Standard Time, broadcast-> 
> 
> According to my friend who audits 501(c(3))'s, the IRA has taken a MUCH
> tougher stance on granting that status on any thing...new or existing. 
> And there is a renewal needed every couple years which requires an audit. 
> This started after some so-called churches abused the class and used them
> to money launder and hide profits from another company.
> 

#63;c=us%26cs=19%26l=en%26s=dhs%26~ck=anavml)