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Gerald, Esq
Gerald, Esq, Lawyer
Category: Business Law
Satisfied Customers: 2879
Experience:  30 years of experience
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I have afriend who has a large church in Uganda Africa that

Customer Question

I have afriend who has a large church in Uganda Africa that would like to register his ministry here in the US to help with donations from his stateside donations. We have a 501c3 ( Touches of Hope) that we use for raising child sponsorships at his orphanage, but he is looking for donations to his general ministry and building program. Can we still operate as a portal for his general ministry or are we limited to just orphanage activities?
Submitted: 1 year ago.
Category: Business Law
Expert:  Gerald, Esq replied 1 year ago.
Hello,
Thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow up questions you have.
I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.
Generally, US 501(c)(3) charitable organizations fund raising for foreign charitable work is limited to those foreign organizations that are an administrative part of the US organization.
Specifically IRS rules provide that Foreign organizations are not qualified to receive charitable contributions unless:
The U.S. organization that transfers funds to a charitable foreign organization controls the use of the funds or the foreign organization is an administrative arm of the U.S. organization.
Accordingly, if the foreign ministry is also part of your organization than you can raise funds for the expansion of the ministry. Otherwise it would appear that you would need to form a different organization whose purpose is the Ministry.
Here is a link to the IRS fund raising manual that addresses this issue:
http://www.irs.gov/irm/part4/irm_04-076-051.html
The other issue you must concern yourself with is the designation of solicited funds. If you are soliciting funds for a particular purpose then generally you are required to use the funds for that purpose. This means that if you are soliciting funds for the sponsorships those funds must be used for that purpose, and not for the purpose of expanding the ministry.
Here are some additional resources that may be helpful to you:
http://www.nonprofitissues.com/your-legal-questions-answered
https://www.501c3.org/misappropriating-nonprofit-funds/
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Good luck,
Please note: Information given is not legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.

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