[Imc-finance] American financial laws

[Sascha Meinrath]

Hi Joe,

It's perfectly legal to take donations; but yes, you may be liable for
paying taxes on those donations (though I wouldn't say you're being
"penalized" ;).  501c3 status will allow donations to be tax deductible
(it would be fraud for your donors to claim the deductions on their taxes
if you are not an exempt organization).

If you have more questions, feel free to contact me off-list,

In solidarity,

--Sascha Meinrath
Urbana-Champaign IMC

On Mon, 10 Mar 2003, Joseph Diffie wrote:

> Hello,
>
> Sorry for using the global list for a question for American IMC's.
>
> Arkansas IMC is starting to get some money and I was wondering if anyone
> knowledgable about American finance laws can tell me what the legality of
> taking donations is?  Is the IRS going to penalize us for not reporting or
> getting 501c3 status.  Please respond because I am clueless.
>
> thanks,
> joe diffie
> joediffie@hotmail.com