I need some help understanding a non-profit and tax exempt status.

[Maraya1969]

I thought the 2 go hand in hand but I just found out from one of the board members of the Babcock Preservation Partnership, (see link) that they are now going tax exempt so they cannot speak out politically.

I asked for a copy of the financial records by email and on a voice mail and have not received anything. I also sent in a resume' to become a member of the board when one concerned member asked me too. Again nothing. This organization has amassed a great deal of money and, though I think a lot of it was spent trying to save the ranch, I wonder where the rest of it is.

Any help would be very much appreciated.


The Babcock Preservation Partnership

is a private, not-for-profit corporation working to ensure the acquisition, preservation, conservation and management of one of Southwest Florida’s most outstanding areas of natural resources and wildlife habitat -- the Babcock Ranch.

http://www.babcockranch.org/

[northzax]

1. there are several types of non-profits

not all allow donations to be tax-exempt (ones that do, so called 501c-3s, mostly) can spend only 5% maximum of their annual expenditures on lobbying and cannot endorse a political candidate.

ask if they filed a 990, or are planning to file a 990. ask to see their tax exempt letter from the IRS. if they don't have one, or won't show it to you, run, run, run.

[4dsc]

2. happy reading..

http://www.irs.gov/charities/article/0,,id=161145,00.html

http://www.irs.gov/charities/content/0,,id=96986,00.html

[OneBlueSky]

3. non-profit incorporation and tax exemption are two distinct processes . . .

incorporation is done at the state level through one state office or another . . . tax exemption is granted by the IRS after a lengthy application process . . .

I'm not sure, but I believe that the financial records of all incorporated nonprofits are public record, whether they're tax-exempt or not . . . each year they have to file a report with their state, which you should be able to locate . . . call your state's Department of State to inquire . . .