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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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We are a volunteer fire department formed 85 years ago. We

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We are a volunteer fire department formed 85 years ago. We operate on funds received from taxpayers in our townships in the amount of $75000. As volunteers, we hold fundraisers and get donations from residents to the tune of around $14,000 per year. Can we qualify as a 501 (c) 3 entity so the donations received can be deducted by the donors for tax purposes?

Megan C :

Thanks for your question, and thanks for using JustAnswer.com

Megan C :

How are you today?

Megan C :

Yes, your volunteer fire department can qualify for tax exempt status under 501(c)(3). All you need to do is file form 1023 with the IRS and apply for tax exempt status.

Megan C :

Here's a step by step guide to becoming a 501(c)(3) for your organization. CLICK HERE

Megan C :

Do you have any further questions about this matter?

Megan C :

If no further questions, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

Revenues in excess of $25,000 we need to file form 990 I believe it said. Do we take into account our tax revenues or just donations and money from fundraisers?

Megan C :

It's gross receipts, so you would have to consider your tax revenues as well.

Customer:

okay, so we will need to file the form. Do we need to hire an auditor each year for compliance purposes?

Megan C :

Not for tax purposes, but you could based on the requirements of lenders, creditors, or regulatory agencies

Megan C :

I couldn't say with certainty given my limited knowledge of your organization

Customer:

and we have no lenders or creditors so we should be okay.

Megan C :

Yes, I would run it by a nonprofit lawyer to double check for certainty

Megan C :

But for tax purposes there's no need for an audit

Customer:

Okay, and I can ask neighboring departments who are already in the 501 c 3 status.

Customer:

Thanks so much for the help tonight Megan.

Megan C :

You're welcome. If you would, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

I most certainly will!! You have been a great help!!

Megan C and other Finance Specialists are ready to help you
Thanks Dennis for your positive rating. Please come back and visit me for any of your tax, finance, or social security needs. It was a pleasure working with you today.