One way to earn a Scooby Snack: “Stay Exempt” tools clearly communicate IRS rules

Those vaguely familiar looking characters at the right aren’t from a lost Scooby-Doo episode. They’ve been freshly created by the Internal Revenue Service (IRS) as part of the micro site www.stayexempt.irs.gov, and they’re here to help you meddling kids keep your charitable status.

The IRS has gotten tougher in recent years on both the organizational and operation tests that your nonprofit oranization has to pass. Things to avoid: benefiting a private party, excessive lobbying, affecting political campaigns, engaging in unrelated business, and filing incorrectly. 

Once you know the rules, it’s really not that difficult to operate within the guidelines. And to help you learn them, these characters participate in online workshops with you.

The IRS really can’t try much harder to make all of this accessible, so instead of getting that teeth chattering fear of the mysterious presence lurking nearby, become your organization’s expert on the right way to do things.

Main Street organizations and nonprofit status

For fund development efforts, Main Street organizations have no better tool than the Internal Revenue Service’s designation as a 501 (c) 3 organization.  Lately some communities have struggled for it, trying hard to clarify the nuances of how Main Street groups pursue their goals so that they are not designated as economic development or membership organizations. 

It gets tricky; those nuances are many. But they are fundamental ,and they affect organizational bylaws, articles of incorporation, mission and operations. 

Fortunately, the National Trust Main Street Center just ran an article by a D.C. based attorney well versed in the Main Street world.  Read Andrea C. Ferster’s article, Getting a Green Light from the IRS for an overview of what makes Main Street organizations community benefit nonprofits and what you can do to avoid IRS pitfalls.

If your downtown has a community-based group desiring nonprofit status in order to pursue Main Street goals, contact Main Street Program Manager Jeff Sadler.