Why is a 501(c) 3 useful?

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Since it may have been implied that I cut and paste from Wiki ( I am sure Cornell University Law School will be disappointed that their website content does not live up to certain standards....)
Why my "wiki" cutting posts?  If throwers want to throw in front of people (a.k.a. at a festival), then a little knowledge on how a festival is financed would seem appropriate --- Additionally, the term 501(c)3 is thrown around often with out many who are listening knowing what it is and what it does. So cutting and pasting from "wiki" for some general knowledge to help frame issues for others seemed like it maybe helpful. 

So here is my cheap seat or (dare I say) wiki seat take on why A 501(C)3 is important to a festival for those inquiring minds?  

1. Tax deductible donations: Individuals who donate can write off donation on taxes as a charitable contribution.  This hold true for business but business also can write it off as an advertising expense and thus do not necessarily need this tax status to donate.  Individual donations are source of income for a festival but there are much larger ones.

2. A.  SCREENING TOOL: 501(C)3 is used as a screening tool, if you don't have one, it ain't easy to get the purse strings opened.  As stated previously, business could write off their donations as advertising expenses, so it is as much or more about getting access.   

With the trend of so many business, big and small, of consolidating  their charitable donations to one or two events to get more bang for the buck; -- does this benefit really matter anymore? OR is this benefit of a 501(c)3 weakening as so many festivals do not met the bang-for-the-buck standards?    

2. B Organizational Structure - There is an assumption that a  501(C)3 organization  is legitimate and not a fly-by-night organization.  There are certain reporting and organizational needs required by one.  It demonstrates to those being asked for a hand out that your organization is legitimate -- another screen tool. 

3. Grant Writing -  A festival can raise some serious funds through grants and a grant writer is worth the weight of HWFD implement in gold.  It seems like grants also use this tax status as a screening tool

4. Local Laws - Examples where a 501(c)3 may be useful -- Restrictions on raffles to only be legal for charitable organizations may exist.  Special event liquor license have been known to be restricted to charitable organizations.

I am sure I missed a bunch ....   so fire up google to look for a wikis out there --- there has to be ones that are better written and are run by people who are much smarter than I and who have set up many many 501(c)3 .... 

I just wish these wiki cheap seats in the peanut gallery had beer vendors -- I could use some well watching the greatest show on earth.....

Edited by McSanta - 2/01/15 at 3:07pm

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McSanta Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List Postaholic Joined: 4/12/05 Location: United States Status: Offline Points: 1595	Post Options Post Reply Quote McSanta Report Post Thanks(0) Quote Reply Topic: Why is a 501(c) 3 useful? Posted: 1/31/15 at 6:28am
	Since it may have been implied that I cut and paste from Wiki ( I am sure Cornell University Law School will be disappointed that their website content does not live up to certain standards....) Why my "wiki" cutting posts? If throwers want to throw in front of people (a.k.a. at a festival), then a little knowledge on how a festival is financed would seem appropriate --- Additionally, the term 501(c)3 is thrown around often with out many who are listening knowing what it is and what it does. So cutting and pasting from "wiki" for some general knowledge to help frame issues for others seemed like it maybe helpful. So here is my cheap seat or (dare I say) wiki seat take on why A 501(C)3 is important to a festival for those inquiring minds? 1. Tax deductible donations: Individuals who donate can write off donation on taxes as a charitable contribution. This hold true for business but business also can write it off as an advertising expense and thus do not necessarily need this tax status to donate. Individual donations are source of income for a festival but there are much larger ones. 2. A. SCREENING TOOL: 501(C)3 is used as a screening tool, if you don't have one, it ain't easy to get the purse strings opened. As stated previously, business could write off their donations as advertising expenses, so it is as much or more about getting access. With the trend of so many business, big and small, of consolidating their charitable donations to one or two events to get more bang for the buck; -- does this benefit really matter anymore? OR is this benefit of a 501(c)3 weakening as so many festivals do not met the bang-for-the-buck standards? 2. B Organizational Structure - There is an assumption that a 501(C)3 organization is legitimate and not a fly-by-night organization. There are certain reporting and organizational needs required by one. It demonstrates to those being asked for a hand out that your organization is legitimate -- another screen tool. 3. Grant Writing - A festival can raise some serious funds through grants and a grant writer is worth the weight of HWFD implement in gold. It seems like grants also use this tax status as a screening tool 4. Local Laws - Examples where a 501(c)3 may be useful -- Restrictions on raffles to only be legal for charitable organizations may exist. Special event liquor license have been known to be restricted to charitable organizations. I am sure I missed a bunch .... so fire up google to look for a wikis out there --- there has to be ones that are better written and are run by people who are much smarter than I and who have set up many many 501(c)3 .... I just wish these wiki cheap seats in the peanut gallery had beer vendors -- I could use some well watching the greatest show on earth..... Edited by McSanta - 2/01/15 at 3:07pm
	Mark McVey "The work of science is to substitute facts for appearances and demonstrations for impressions." -John Ruskin

greynolds177 Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List Postaholic Joined: 4/12/07 Location: United Kingdom Status: Offline Points: 1752	Post Options Post Reply Quote greynolds177 Report Post Thanks(0) Quote Reply Posted: 1/31/15 at 8:52am
	Thanks for the update Mark. Your system in very different over there so it was useful for me
	A.D.Inverness 1999-present; MWC2006, World Championships 2007, MWC2009 and MWC2014. Organiser of Guinness World Record for Caber Tossing. Scottish Masters International Hall of Fame Inductee 2014.