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Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13626
Experience:  15years with H & R Block. Divisional leader, Instructor
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we are a small group pf military and police bikers who want

Customer Question

we are a small group pf military and police bikers who want to hold a dance to raise money for a homeless shelter for vets...we will charge for the dance and supply food and a band ... do we have to file taxes on any monies raised
Submitted: 5 years ago.
Category: Tax
Expert:  Robin D. replied 5 years ago.

Robin D :

Hello and thank you for using Just Answer
While and organization is waiting on it's determination letter from the IRS they can still operate as a non-profit.

Robin D :

Here is a good read for you and your organization if you do not have it already.
http://www.irs.gov/pub/irs-pdf/p4220.pdf

JACUSTOMER-8nux7b2n- :

so if we have the dance do we pay taxes on it

Robin D :

NO, not if your nonprofit application is accepted

JACUSTOMER-8nux7b2n- :

what if the form was just sent in

Robin D :

It still stands. If the application is accepted then you are back dated to your incorp date for the non profit

JACUSTOMER-8nux7b2n- :

so the dance is sept1 do we have the dance then adjst the 501c

Robin D :

You have the dance and then when you file you regular reporting forms for teh 501c you will have your determination letter by then and it will not be unrelated business income. As long as you are not getting into the business of having dances on a regular basis then your group should be good. I suggest you get a CPA in your area to walk you all through this at first.

JACUSTOMER-8nux7b2n- :

thank you what if we have the dance use some of the money as the 800 needed to file is that ojk just to back date everything

Robin D :

If you want to hav ethis dance before you file for your nonprofit then I suggest you work directly through the Vet Home and use their status. Then file and be straight before you start anything else.

Robin D :

What you want to do is allowed (raising money for a homeless shelter) but you really nee dto get the nonprofit app filed and register with the state so funds coming in are accepted and the people know that the tax contribution is there for them.

JACUSTOMER-8nux7b2n- :

can you send this answer to my e-mail

JACUSTOMER-8nux7b2n- :

i ment live text

Robin D :

I personally cannot but you can click to save when you accept and that will keep the chat. You can also copy and paste to word

Robin D :

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