10-07-2010, 03:46 AM
Bob - I'm a CPA here in SLC and I prepare 990's for non profit organizations here in Utah. Therefore, I am familiar with section 501 C (3) and the other relevant regulation pertaining to tax deductible donations/solicitations. I know you must register your tax exempt organization with the state to "solicit" within that state. However, typically, the donor is looking for a tax deduction which results in all the red tape. Gifts, on the other hand, are not reported if under the statutory limits. I honestly don't know where the line is drawn (from a state point of view) on what constitutes a "solicitation". For example, do the families of a individual's untimely death "register" with the state (and IRS) to solicit funds through the local media on behalf of the children of the deceased? The same situation exists for "solicitations" for medical treatment of a person with a potentially terminal illness. I just don't believe that asking for a "helping hand" results in the regulation and scrutiny that a typical non profit has to endure! Hell, I know the panhandlers around this town aren't registered!!
Rick
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Rick
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