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Can a nonprofit 501 organisation use it’s money to fund a frivolous civil law suit?

G

guest

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Not really but no one gives a shit about removing non profit status.

[URL]https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations[/URL].

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be [URL='https://www.irs.gov/charities-non-profits/charitable-organizations/organizational-test-internal-revenue-code-section-501c3']organized[/URL] and [URL='https://www.irs.gov/charities-non-profits/charitable-organizations/operational-test-internal-revenue-code-section-501c3']operated[/URL] exclusively for [URL='https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3']exempt purposes[/URL] set forth in section 501(c)(3), and none of its earnings may [URL='https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations']inure[/URL] to any private shareholder or individual. In addition, it may not be an [URL='https://www.irs.gov/charities-non-profits/charitable-organizations/political-and-lobbying-activities']action organization[/URL], i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.


Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.


The organization must not be organized or operated for the benefit of [URL='https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations']private interests[/URL], and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an [URL='https://www.irs.gov/charities-non-profits/charitable-organizations/intermediate-sanctions-excess-benefit-transactions']excess benefit transaction[/URL] with a person having substantial influence over the organization, an [URL='https://www.irs.gov/charities-non-profits/charitable-organizations/intermediate-sanctions']excise tax[/URL] may be imposed on the person and any organization managers agreeing to the transaction.


Section 501(c)(3) organizations are restricted in how much political and legislative (lobbying) activities they may conduct. For a detailed discussion, see [URL='https://www.irs.gov/charities-non-profits/charitable-organizations/political-and-lobbying-activities']Political and Lobbying Activities[/URL]. For more information about lobbying activities by charities, see the article [URL='https://www.irs.gov/pub/irs-tege/eotopicp97.pdf']Lobbying Issues[/URL]; for more information about political activities of charities, see the FY-2002 CPE topic [URL='https://www.irs.gov/pub/irs-tege/eotopici02.pdf']Election Year Issues[/URL].
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There's all sorts of violations, but you'd probably need to subpeona their communications to prove anything. Quasi could, since he would have standing to sue them. But that would get even more expensive.
 
FurBurger

FurBurger

What would you do for a Klondike bar?
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FurBurger

FurBurger

What would you do for a Klondike bar?
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notalawyer said:
There's all sorts of violations, but you'd probably need to subpeona their communications to prove anything.
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There's an IRS form they have to fill out (990?) each year showing what they did with their money, and you can request it from them or the IRS. Also from what I've read the IRS very much do give a shit, particularly since we're talking north of $100k so far.
 
HotDogJoe

HotDogJoe

Professional leech since 1994. Anyone can do it.
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FurBurger said:
There's an IRS form they have to fill out (990?) each year showing what they did with their money, and you can request it from them or the IRS. Also from what I've read the IRS very much do give a shit, particularly since we're talking north of $100k so far.
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Oh boy. I sure hope this whole thing isn't going to backfire on all those involved. That would be very unfortunate.
 
Random username

Random username

Comedy dickhead
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AntSucks2 said:
I still don't believe the SFWA has access to that kind of funding. It's got to be some of the side characters in this saga dipping into their personal savings.
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This one hundred percent. You think schill, creepy uncle Paul weimer (he is a big wheel in the swfa) and those would have access to that kinda cash and not, let's say, dip thier beak?
 
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