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Can a non-profit organization charge money for form preparation?

Posted: Sat Feb 25, 2012 10:54 pm
by Yahoo Bot

Its a problem for them for two reasons.
1. If the activity involved is of the type that is normally a business, the activity attracts UBIT, Unrelated Business Income Tax. We know that there are forms businesses and clearly they are usurping a business.
2. Practice of Law. It is also the unauthorized practice of law, because what is filled in is a matter of art.
Who will be most upset about this?
1. Attorney General, State of California, nonprofits.
Specifically:
Belinda Johns, Senior Assistant Attorney General, Charitable Trusts Section, California Attorney General's Office, and
Diane Deatherage, Program Specialist II, Exempt Organizations Unit, Franchise Tax Board
2. IRS TEGE, because of the loss of UBIT.
Internal Revenue Service
Exempt Organizations Determinations
P.O. Box 2508
Cincinnati, OH 45201
EXEMPT ORGANIZATIONS
Martha Sullivan Director, Exempt Organizations (202) 283-2300 tege.eo@irs.gov
Lois Lerner Director, Rulings and Agreements (202) 283-2300 tege.eo.ra@irs.gov
Rosie Johnson Director, Examinations (214) 413-5425 tege.eo.e@irs.gov
It is no defense that it is part of their core objective. I can have a church whose purpose it is to supply plumbers in exchange for a donation and "help the poor plumbers". Its an abuse of nonprofit law at the state and federal levels.
Since you know who they are, you are nominated to drop a dime to the above players.
Enjoy....

The post was migrated from Yahoo.

Can a non-profit organization charge money for form preparation?

Posted: Thu Feb 23, 2012 10:46 am
by Yahoo Bot

Does anyone on the list know if a qualified 501(c)(3) non-profit
organization can charge people it is "helping" money in exchange for
preparing their legal forms?
I think I am aware of one such organization which charges about $350 to
prepare foreclosure-defense/delay paperwork. Wasn't quite sure whether they
should have non-profit status, because they are making money off the whole
thing.

The post was migrated from Yahoo.