News Need some help with a 501C3

Marty Mac Ver 2.0 · 08-16-2012, 10:15 PM

General situation:

an entity set themselves up for a 501C-3 status during Hurricane Katrina. Their NTEE status is " M20 - Disaster Preparedness & Relief Services "

Over the years they showed gross receipts ranging from $25,000 to $50,000

With Katrina subsiding, this group has shifted focus to running community events for profit, with large subsides from a governmental entity.

My general question is this; (1) how is this legal (2) if you set up a 501C3 under one set of circumstances and then use that number for gain under a different set of circumstances, how is that legal?

If its OK, then no harm no foul. If not, then what kind of trouble are they putting themselves in as well as people who give them money under the premise of a 501C-3 who's sole purpose has no relevancy to the foundation of the gift/award/donation?

08-16-2012, 10:15 PM	Topic Starter
Marty Mac Ver 2.0 SaveOurChiefs.com Join Date: Sep 2004 Casino cash: $10005625	Need some help with a 501C3 General situation: an entity set themselves up for a 501C-3 status during Hurricane Katrina. Their NTEE status is " M20 - Disaster Preparedness & Relief Services " Over the years they showed gross receipts ranging from $25,000 to $50,000 With Katrina subsiding, this group has shifted focus to running community events for profit, with large subsides from a governmental entity. My general question is this; (1) how is this legal (2) if you set up a 501C3 under one set of circumstances and then use that number for gain under a different set of circumstances, how is that legal? If its OK, then no harm no foul. If not, then what kind of trouble are they putting themselves in as well as people who give them money under the premise of a 501C-3 who's sole purpose has no relevancy to the foundation of the gift/award/donation?
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