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Establishing 503(c) -- why & tips

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  • Establishing 503(c) -- why & tips

    Just curious, did anyone here start a 503(c)?  How did you go about it -- do-it-yourself (i.e. NOLO) or with an attorney?  How long & how much did it cost?  For instance did WCI do his scholarship and takes donations thru 503(c) or at least did he consider it (why/why not)?  As usual, thanks for generously sharing your experiences.

  • #2




    Just curious, did anyone here start a 503(c)?  How did you go about it — do-it-yourself (i.e. NOLO) or with an attorney?  How long & how much did it cost?  For instance did WCI do his scholarship and takes donations thru 503(c) or at least did he consider it (why/why not)?  As usual, thanks for generously sharing your experiences.
    Click to expand...


    He has not. Most donors can deduct the contribution as an advertising business expense.

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    • #3




      Just curious, did anyone here start a 503(c)?  How did you go about it — do-it-yourself (i.e. NOLO) or with an attorney?  How long & how much did it cost?  For instance did WCI do his scholarship and takes donations thru 503(c) or at least did he consider it (why/why not)?  As usual, thanks for generously sharing your experiences.
      Click to expand...


      501(c)3's used to be a PITA to set up, which was unfortunate since most people setting one up have a very generous heart and just want to help people with an organization that is highly unlikely to grow to the size of the Red Cross. Form 1023 was (and still is) used to set up a 501(c)3. Fast forward to 2014 and the IRS rolls out a 1023-EZ. This is one of the best decisions they have made in a long time. Most lay-people can DIY the 501(c)3 setup online.

      Begin by filling out the 1023-EZ Eligibility Worksheet to find out if you qualify (see page 10 of the instructions). Good luck and let me know if you have more questions.

      To address PhysicianOnFIRE's comment, true donations are not deductible as advertising. A deductible gift must be an arm's length transaction in which the donor relinquishes control over how the money is used. However, many payments made to charities are for the purpose of promoting your business (buying t-shirts with your business name for the Little League, for example) and those can be deducted as advertising.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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