On Mon, 25 Oct 2004 14:06:52 -0400, "Bill-kb3gun"
wrote:

How can a business accept charitable donations?
You have to be a business of sorts to be a charatable organization. You must
have a board of directors or officers and must hold regular business
meetings. Look at the Red Cross. They're a Charatable, Not-for-Profit,
--Both tax classifications (ie 501C3) business...

All types of non-profit corporations need to follow the IRS tax
regulations, as well as corporate law for the state in which they are
incorporated. They also need to follow commonly accepted accounting
practices, including an annual review of their finances and procedures
by an outside CPA.

Any non-profit type corporation can accept donations, but only
donations to a 501(c)(3) charitable non-profit are tax deductible for
the giver, and certain other benefits and programs are reserved for
501(c)(3). Grants are usually only available to (c)(3)s.

The flip side is that the standard for becoming and remaining a
501(c)(3) is more difficult, and they are scrutinized more carefully
by the IRS.

The vast majorities of their activities need to be charitable (for the
community, not their membership), educational, religious, or
scientific.

Other types of non-profits (there are at least a dozen other types) do
not need to meet such a high standard for their activities. Many would
fall under 501(c)(7), which is "recreational or social" clubs.

There are also restrictions on payments to Board members.

I suppose in theory that a for-profit business could accept donations,
but there would be no tax deduction for the giver, and the business
might have to pay taxes on it as income. Doesn't make sense, but it is
not illegal.

Happy trails,
Gary (net.yogi.bear)
------------------------------------------------
at the 51st percentile of ursine intelligence

Gary D. Schwartz, Needham, MA, USA
Please reply to: garyDOTschwartzATpoboxDOTcom