If I want to start a website but donate money earned to different charities, does that qualify for 501c3 status?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I want to start a website but donate money earned to different charities, does that qualify for 501c3 status?
Money earned minus operating expenses pertaining to the website
Asked on May 18, 2012 under Business Law, Texas
Answers:
B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
A lot of different factors could influence whether or not the business would qualify as a 501(c)(3) non-profit. Just because an business donates it's profits to a charity does not automatically qualify as a non-profit. The purpose of the organization will also control whether or not it will qualify. For example, a church or charity it would qualify because the purpose from the get-go was for a purpose which qualifies under the tax code. The purpose has to be set out from the inception of the entity. This means that you can't start the website with one purpose and then switch the purpose later. If you really want to set up a 501(c)(3) entity, you should gather your paperwork and visit with an attorney or accountant that helps non-profits so that you get advice that is specific to your purposes and objectives.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.