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This is a non-profit public benefit corporation question; I

and six other people work...
This is a non-profit public benefit corporation question; I and six other people work for a non-profit public benefit corporation, that is recognized as tax-exempt under Internal Revenue Code (IRC) Section 501 ( C ) (3 ).
The records also indicate the our non-profit public benefit corporation is not a private foundation as defined under IRS Section 509 ( a ) because it is described in IRC Section 509 (a) (2).
We are also told that Donors can deduct contributions they make to our Charity as provided in IRC Section 170. And that we are also qualified to receive tax deductible bequests, legacies, devises, transfers, or gifts under IRC Section 6033(j) Provides that, if we don’t file a required annual information return or notice for three consecutive years, our exempt status will be automatically revoked on the filing due date of the third required return or notice.Question: We would like to know if all the assets of the charity, real estate, money, etc are considered “public assets under the control of the Charity. And if someone working for the charity stole money and real estate belonging to the Charity would that be considered embezzlement of public money and real estate.
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Customer reply replied 3 months ago
Question restated: We would like to know if all the assets of the charity, real estate, money, etc are considered “public assets that is under the control of the Charity. And if someone working for the charity stole cash money and real estate form the Charity and sold the real estate and keep the money would that be considered embezzlement of public money and real estate.
Answered in 4 hours by:
8/18/2017
N Cal Attorney
N Cal Attorney, Attorney
Category: Business Law
Satisfied Customers: 9,437
Experience: Since 1983
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Thank you for your question.

In which State was the non-profit incorporated?

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Customer reply replied 3 months ago
California
Customer reply replied 3 months ago
Look at this; California Code, Penal Code - PEN § 799 (a) Prosecution for an offense for the embezzlement of "public money", may be commenced at any time. Does this apply to the money and real estate stolen by the charity’s employee in 2011.
Customer reply replied 3 months ago
I am trying to see if this California Code, Penal Code - PEN § 799 apply when a "employee" of the Charity steals Real Estate and Money from a Public Charity that is recognized as tax-exempt under Internal Revenue Code (IRC) Section 501 ( C ) (3 ).
Customer reply replied 3 months ago
I hope I am saying this right, so that you can understand what I am trying to find out.
Customer reply replied 3 months ago
I am trying to see if this California Code, Penal Code - PEN § 799 apply when a "employee" of the non profit public benefit Charity, steals Real Estate and Money from a Public Charity that is recognized as tax-exempt under Internal Revenue Code (IRC) Section 501 ( C ) (3 ). I am trying to find out if this would be considered 'Embezzlement of "public money".
Customer reply replied 3 months ago
Where are you? I believe you should pass on this question, while waiting for you I just called the IRS and got the answer by making one call and the answer to my question is "Yes," they told me the answer can be found in the IRS 501( C) (3) Inurement laws. they also said go to the IRS web site and type in publication 4221 PC., or type in “privet inurement” and it will bring it up. You must start fine tuning your craft. So hang in there we all are counting on you to be a good helper, Smile

Penal Code

426.

"The phrase “public moneys,” as used in Sections 424 and 425, includes all bonds and evidence of indebtedness, and all moneys belonging to the state, or any city, county, town, district, or public agency therein, and all moneys, bonds, and evidences of indebtedness received or held by state, county, district, city, town, or public agency officers in their official capacity."

Based on the above statute, funds held by a 501(c)(3) are not "public moneys". The regular embezzlement statute would apply, and not the more specific statute on embezzlement of public funds.

I can do more in depth research if you can wait until next week. I just ordered a copy of the annotate codes for Penal Code 426 but I will not get that until Monday at the earliest. That will probbaly have a definitive answer. Can you wait till next week?

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Customer reply replied 3 months ago
thank you

Will do.

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The Annotated Penal Code does not have any case that decides this issue. Funds that a nonprofit receives from a government entity continue to be public funds but I cannot find any case that says that other funds held by a nonprofit are public funds.

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Customer reply replied 2 months ago
The IRS told us that all the assets of a IRS IRC 501(c)(3) Charity belong to the charity and the charity is organized as a public benefit charity. and that all the assets belong to the public owned charity, and that all the assets are public owned assets and the public charity owns them. We are only the employee and officer of of the charity.

I am not supposed to interact with you other than through this site, or act on your behalf other than on line, but I think you can get a definitive answer by calling (916)(###) ###-####/a>. They will know whether or not funds held by a 501(c)(3) are considered to be "public moneys" as that term is used in the Penal Code.

I hope this information is helpful.

N Cal Attorney
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Customer reply replied 2 months ago
You hung in there and did a good Job, Thank You Very Much

Thank you for the great rating!

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