AToday NewBreak Article on 3ABN Options

[sonshineonme]

It i$ alway$ the $$$$$.

I $hould $tart counting the time$ Danny or other$ talk about a$king for donor monie$ at each program. They think we are all $ucker$.

Ro$yRoi

what a spot on post!!! love it!!!!!!!!!!

[Noahswife]

There have been many questions regarding 501( c )(3) organizations. I thought I would share the following if anyone is interested......

Q: What is the difference between a public charity and private foundation?

A: All organizations which apply for tax exemption under 501( c )(3) are either classified as "public charities" or "private foundations." A 501( c )(3) tax-exempt organization is classified as a "private foundation" unless it falls under one of three exceptions, in which case it is classified as a public charity: (1) by virtue of its activities (churches, schools, hospitals, and a few others); (2) it is organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of, a public charity; or (3) it can show that it is "publicly supported" (which generally means receiving financial support from a broad group of funding sources).

With regard to "publicly supported" public charities, the determination of whether an organization is publicly supported is based initially on the information provided by the Organization on its Application for Tax Exemption (IRS Form 1023) and then on the informational tax returns filed annually with the IRS (IRS Form 990 or 990-EZ). Additionally, at the end of its "Advance Ruling Period" the Organization should file IRS Form 8734 to prove that its sources of revenue meet the "public support test" or otherwise meets the operating tests for remaining a public charity.

Why does this classification make a difference? Determination as a public charity, rather than as a private foundation, is generally more desirable for most nonprofit organizations, for several reasons: private foundations are subject to a 2% tax on net investment income; private foundations are generally prohibited from engaging in a number of activities that public charities may undertake, including an absolute prohibition on lobbying activities; contributions to private foundations are not deductible to the donor to the same extent as contributions to public charities; and reporting and disclosure requirements for private foundations are more strict than for public charities.

For those interested here is a bit more regarding these organizations:

http://www.probonopartner.org/publications/pbpfaq.htm

This post has been edited by Noahswife: May 23 2007, 12:38 PM

[lurker]

Much has been made of the influence of a few wealthy donors. I looked at the Garmar 990's and then at this website. http://tinyurl.com/37a2za

And it seems to me that the bulk of the money comes instead from the stockholders in the pews. This site refers to charitable gift annuities from donors in one state only and for a limited period of time.

This post has been edited by lurker: Jun 5 2007, 07:08 AM

[Rosyroi]

Much has been made of the influence of a few wealthy donors. I looked at the Garmar 990's and then at this website. http://tinyurl.com/37a2za

And it seems to me that the bulk of the money comes instead from the stockholders in the pews. This site refers to charitable gift annuities from donors in one state only and for a limited period of time.

Thank you lurker.

This information you have provided has helped me feel less fearful about the presumed power these big money doners seem to have in control over the situation at 3ABN.

There are so many powerful people in our church who apparently effertlessly control quite a bit of our church activities. This is present from the local level all the way up the GC.

I need to remind myself God is in control. He just lets the pharasees get away with things just so long before truth comes out. Today with www truth is comming out years faster than it used to. Of course gossip also travels at least as fast or faster.

JMO

Rosyroi

[lurker]

As we have been reminded, just becase the GC has made a statement doesn't mean that it is all over. And as I digest some of the information I am still finding, I would like to point out that in this particular document, it was noted that 3ABN issued 18 charitable gift annuities in Washington state after having knowledge that it was required to obtain a certificate of exemption. http://tinyurl.com/37a2za

What is the consensus here? In your opinions did they, in their hunger for money, deliberately break the law? Would the fine have been less if they had waited to issue them until it was legal after they found out they needed a certificate? Were they afraid that the donors would tire of waiting and go with another ministry or to the church with their money?

This post has been edited by lurker: Jun 8 2007, 12:16 PM