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> I think you have a misunderstanding of how that works. In many cases, you need both the state and federal non-profit designation (i.e. a Michigan domestic non-profit corporation would not pay state income taxes on charitable income + that same corporation would need the 501c3 designation from the IRS to have the same benefit at the federal level).

Yes, I'm aware. And since the lions share of taxes is often federal, the 501c3 step does not generally get skipped, like it does here. Why would they voluntarily give themselves federal tax exposure if they were able to avoid it?

> Do you have positive confirmation that they are not filing as a 501c3?

I am positive that it has been over 2 years since they filed as a Michigan domestic non-profit. Therefore we all have positive confirmation that they did not attempt to become a 501c3 with an organization capable of doing so, at the time they became a nonprofit. It does not take 2 years to become a 501c3.

I can't speak to their plans for the future.





> Why would they voluntarily give themselves federal tax exposure if they were able to avoid it?

Right. That wouldn't be particularly smart, even to someone who doesn't fully understand the ins and outs of tax/corporate law. Is it possible that perhaps they _do_ have their 501c3 designation and are just communicating it poorly?

Lack of positive confirmation that they are a 501c3 != positive confirmation that they are _not_ a 501c3


No, you misunderstand.

All 501c3 are publicly listed. They are not on the list. We have positive confirmation that they are not a 501c3, right now, nor have they ever been one.

The possibility suggested earlier was that they have applied but are not yet a 501c3. I lack positive confirmation that they have never attempted to become a 501c3.

Since it has been two years since they became a nonprofit, I think that implies they either have no intention of becoming a 501c3 or else tried to become one and failed because they did not meet the criteria. But technically it is possible that it is just delayed.


Ah, I see. I don't think I realized that 501c3 are publicly listed and that we do have positive confirmation that they aren't on that list. Thanks for clarifying.



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