How to open a non-profit organization for homeless people?

Is it legal to refer to your organization as a "nonprofit" in order to encourage people to donate to it, when your organization is simply "not intended to make a profit" and has no official I.R.S. tax-exempt status?

  • Answer:

    No, a nonprofit is a legally defined corporate body at a state level. Tax exempt nonprofit is a federal designation. When you ask people to donate to a "nonprofit" you are giving the impression that they can take a tax deduction for the gift. You are required to give them the copy of the IRS letter of eligibility and EIN of the organization. Don't hurt of the rest of the real tax-exempt nonprofits with lies.

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Just so everyone knows, I'm not actually in favor of claiming to be a nonprofit when one is not a nonprofit, I just wanted to know whether or not such a statement was legal if the organization in question merely doesn't make a profit (sans actual tax-deductible status).

eternal0void

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