|
4
<br />Urban Enterprise Association of South Bend, Inc.
<br />Donors may deduct contributions to you as provided in section
<br />170 of the Code, Berpuests, legacies, devises, transfers, or gifts
<br />to y�)u or for yo,ur: use are deductible for federal estate and gift
<br />tax purposp-s,'if they meet the applj�:,,Lje pt-ovisions of sections
<br />2055, 2106, and 2522 of the Code,
<br />Donors (including private foundations) may rely on this rUlAng
<br />unless the Internal Revenue Service publishes notice trr the
<br />contrary,,, However, if you lose your 5o9(a) status as shown above,
<br />donors (other than private foundations) May not rely i:)n the
<br />classification shown above if they were in part responsible for,
<br />or were aware of, the act that resulted in your loss of such
<br />status, or they d(,quired knowlcdge that f-,hP, Internal Revenue
<br />Service had given notice that you would be removed from that
<br />cla_ss- Eication. Private fou,ndations may rely on the classification
<br />_" J L
<br />as long as you were not directly or indirectly controlled by them
<br />or by disqualified persons with respect to them. 1-fowever, private
<br />foundations may not rely on the classification shown above if they
<br />acquired knowledge that the Interna]. Revenue Service had given
<br />notice that you would be removed from that classification.
<br />If your organization conducts fund-raising events such as
<br />benefit dinners, auctions, membership drives, etc. , where something
<br />is -rer-eived in return for contributions, you can help your
<br />donors avoid difficulties with their income tax returns by
<br />assisting them in determining the proper tax treatment of their
<br />contributions. To do this you should, in advance of the event,
<br />determine the fair market value of the benefit received and state
<br />it in your fund-raising materials such as solicitations, tickets,
<br />and receipts in such a way that your donors can determine how much
<br />is deductible and how much is not. ro assist you in this, the
<br />) F a � �Ma I
<br />Service has issued Publication 1391, DeqLuctij� P Nl'ts Made
<br />- u in obtain
<br />.a , dug purj�L-R4_q. _Events. Yo ay
<br />copies of Publication 1391 from your key district office.
<br />In the heading of this letter we have indicated whether you
<br />must file Form 990, Return of organization Exempt from Income Tax.
<br />If Yes is indicated, you are required to file Form 990 only if your
<br />gross receipts each year are normally more than $25,000. If your
<br />gross receipts each year are not normally more than $25,000, we ask
<br />that you establish that you are not required to file Form 990 by
<br />completing Part I of that Form Eor your first year. rhereafter,
<br />you will not be required to file a return until your gross receipts
<br />exceed the $25,000 minimum. For guidance in determining if your
<br />gross receipts are "normally" not more than the $25,000 limit, see
<br />the instructions for the Form 990:. If a return is required, it
<br />must be filed by the 15th day of the fifth month after the end of
<br />your annual accounting period., A penalty of $10 a day is charged
<br />when a return is filed late, unless there is reasonable cause for
<br />
|