What's the best legal structure for a group of people donating to a 501(c)(3) to form?
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The group will be signing a gift agreement document to donate to a single 501(c)(3) over several years. The non-profit requires a single entity to sign the gift agreement, but the group doesn't want the entire legal burden on a single member. Is it possible to form a legal entity of some sort among the group members and sign the agreement as that entity? The goals of the legal structure here are: * Maintain tax deductibility for the individual donors in the group * Prevent any donor from being legally liable for more than his fair share of the gift agreement amount * Have a relatively simple filing process Will will forming an LLC or another 501(c)(3) corporation or association fulfill the above goals?
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Answer:
I'm no lawyer but the code has a type of 501(c)3 charity that is designated as a "support organization" for another 501(c)3. That might well work -- you need to talk to a lawyer expert in these areas, of course.
Dick Karp at Quora Visit the source
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