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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 111683
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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We are a 11 year old Buddhist monastery and church in NC

Customer Question

We are a 11 year old Buddhist monastery and church in NC using the federal IRS exemption for churches. We also have a separate 501(c)(3) that does missions in the US and India. We just put a property under contract to become a meditation retreat center with an intentional community component. We have formed a new corporation for the retreat center and communityand signed the contract as that corporation. We just filed for a separate 501(c)(3) but it will not be approved by settlement time. We are raising funds nationally for this center as opposed to using funds from the local operation. What is the best way to receive and hold the funds -- as the new entity with "tax exemption applied for", the mission as fiscal agent with a 501c3 designation, or the existent monastery/church with church designation? If we do not settle on the property, any gifts would be returned or kept until another property is located at the option of the donors.
Submitted: 1 year ago.
Category: Business Law
Customer: replied 1 year ago.
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Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

You would need to raise and hold those funds as dedicated funds for the new corporation and you would raise them through the other 501c that you already have. Your pending 501c would of course receive retroactive tax exempt status on approval, but if you raise it under that new corporation and for some reason it is not approved all of that money raised is taxable as income, whereas if you raise the money under your existing approved non-profit that money remains exempt even if this non-profit application is not approved or takes more time.