Is your FRC team a nonprofit?

[Carol]

Technically, to be declared nonprofit by the IRS means you have fulfilled all the requirements under section 501(c)(3) of the tax code. (Hence the term, a 501c3 organization). A corporation can be set up as a non-profit organization under state law, but does not have to have the 501c3 label. Anyone can donate to any organization but it is easier for the donor to get a tax write-off of the donation is the receiving organization is 501c3. Every organization (school, corporation, or group like a 4H club), nonprofit or for profit, gets a tax id number from the IRS when it is formed. As was stated already, schools are already 501c3 organizations and you can use their tax id number (also called a EIN) to give to donors who want to write-off their donations.

It is complicated but can be done. Many groups in FIRST have do so already. The biggest hurdle is first getting set up as a non-profit corporation - easier in some states than others. And then you have to keep good financial records.

As Jenny said, we did a presentation on this in Atlanta a few years ago. Would it be helpful to give it again this year? Maybe with the help of some teams that have become 501c3 since then?