501(c)(3) requirements

Factual Questions
1

Looking for some help with a few issues I’ve got on the operation of a 501©(3) non-profit group in California. I’ve been a member of various 501©(3) groups, as well as on the board of directors of a couple in the past. I know the IRS and possibly a state’s attorney general govern such groups, and things have probably changed over the years, so I’m looking for answers. (Is there a “Running non-profit groups for dummies” book?

If the group styles itself as an educational organization, what are the requirements on the frequency of producing or providing education? One group I’m involved with says they have to do quarterly education presentations, but another that I’m with does not do quarterly events.

Are there any requirements on how much money (e.g.: percentage) a group needs to disburse to charitable purposes after fundraising events, or can the group keep everything they raise over the course of a year and make one large contribution at the end of their fiscal year? A group I was a member of tends to give everything from each event to a beneficiary, and has one event each year to raise funds for the operation of the group. They were perpetually crying how poor they were, especially toward the end of the year. Another group earmarks a percentage (think it’s something like 25%) of each event they hold for the operational budget, and they’re never whining about being to of money.

2

I don’t know what special requirements California may have but 501©(3) is a Federal Tax status and I don’t think you’re required to give away money on any particular schedule, it can even be invested or saved for future use. The kind of restriction you mention to disburse money on a schedule are usually associated with a particular fund established by a private foundation and specified by a donor.

3

Ages ago Artistic Solutions, Inc., the corporation that puts on BayCon every year explored the idea of becoming a 501(c)(3) organization. The process was so onerous that they decided to remain an ordinary corporation and tailor their expenses vs. income carefully (including charitable donations) so that they have a profit of about $10 at the end of the year.

When the Browncoats organization here in Arizona floated the same idea, I told them the above. The application was thirteen pages (our treasurer said) and in the end, we decided to piggyback off of the national organization’s status instead.

4

Yes.