4 ms·
For tax purposes they need to show a large number of people donating, so for their nonprofit status a lot of $5 donations would be a very good thing.
by protomyth 10y ago
For tax purposes they need to show a large number of people donating, so for their nonprofit status a lot of $5 donations would be a very good thing.
- eganist 10y agoCharity novice here. Specifically why does the quantity of people matter? i.e. what's the tax-specific impact which results e.g from 100,000 people making $5 donations v. one person making a $500,000 donation?
- protomyth 10y agoA 501(c)(3) in the US needs to prove "Public Support". A 100,000 people making a $5 donation shows public support, whereas 1 person making a $500,000 makes the IRS think its a trade group or something else. 501(c)(3) is pretty complicated, but its not the only non-profit type.