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LUGs Applying for 501(c)(3) Non-Profit Status?

Posted by Cliff on from the getting-the-IRS-off-your-back dept.

concord asks: "Our group applied for 501(c)(3) non-profit status with the IRS a few months ago. We are an educational group dedicated to assisting any individuals or groups interested in learning more or employing free software. We hold monthly LUG meetings here in Southwest Florida and have been doing so monthly for the past two years. Nevertheless our IRS case manager is denying our request (so far). Have any other LUGs in the US successfully attained 501(c)(3) status? Can you offer any pointers?"

2 of 25 comments (clear)

  1. Information that might help by lw54 · · Score: 4, Informative
    I am not a tax attorney. However, here's some info that will probably help your LUG.

    You're trying to become a charitable organization 501(c)(3) but in reality, I think you're probably a social club 501(c)(7) and I'm sure the IRS feels the same way too.

    Look into the IRS's Tax Expemtion for Social Clubs

  2. Re:Why are you doing this? by HughsOnFirst · · Score: 5, Informative
    It seems to me that there is a possibility that a LUG would be a 501(c)(3) .


    "The exempt purposes set forth in 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals."


    I've been involved in a few 501(c)(3) organizations, there was a circus, an amiga users group, and my wife has a documentary film production company that is a 501(c)(3). These all fell under the "educational". I also know of a few theater and performance spaces, movie theaters, music and poetry magazines etc. that are 501(c)(3). Just about anything can be educational, I assume a LUG would be educational, and you might even be scientific, charitable, or literary, but educational would be enough.


    What is the benefit of 501(c)(3) status ? There are a lot of 501(c)(3) organizations which can assist other 501(c)(3) orgs with various resources. Many grants , especially in the arts are only awarded through 501(c)(3) umbrella organizations who get a cut of the grant for administering it ( and for dealing with the IRS ). Lots of corporations will donate goods, services , and sometimes money, but only to a 501(c)(3).

    Ask anybody in the academic or arts worlds about 501(c)(3) organizations. For better or worse they are a way of life.