Old Corps Guy

Cadets and YEA new path forward

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47 minutes ago, IllianaLancerContra said:

Stupid question from a biology professor who has no idea how finance works - How long does it take to "handle", set-up, establish, or whatever the correct term-of-art is a 501 c 3?  Is that something that can be accomplished in ~5 weeks?

Yes and, in this case, easily.  Cadets are not a new org. They were once their own 501c3 tax ID.  Their mission hasn’t changed.  They have an ED, a Secretary, and a CFO.  
 

I also depends where they end up.  States differ on review time.

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18 minutes ago, garfield said:

Yes and, in this case, easily.  Cadets are not a new org. They were once their own 501c3 tax ID.  Their mission hasn’t changed.  They have an ED, a Secretary, and a CFO.  
 

I also depends where they end up.  States differ on review time.

They are supposedly setting up a new corporation. That would seem to fit the definition of ‘new.’

The IRS’s process is typically 6 months to a year and a half to get a final determination of 501(c)(3) status. One of their considerations might be the circumstances of the Cadets breaking away from their old parent organization, which might complicate the process.

Edited by Slingerland

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1 hour ago, Slingerland said:

They are supposedly setting up a new corporation. That would seem to fit the definition of ‘new.’

The IRS’s process is typically 6 months to a year and a half to get a final determination of 501(c)(3) status. One of their considerations might be the circumstances of the Cadets breaking away from their old parent organization, which might complicate the process.

From the first Google hit, 501c3.org:
 

How long does it take for the IRS to approve 501(c)(3) status? Typically, IRS 501(c)(3) approval takes between 2 and 12 months, inclusive of likely written follow-up questions. Sometimes it takes a little less; sometimes a little more.

EDIT:  This time does not include the acceptance of the incorporation letters at the state level.  Varying timeframes, based on state.

Edited by garfield

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7 hours ago, Fran Haring said:

What are: 1,4,5) The name of a vehicle... 2,6) A shortened version of "Robert"... and 3) What a craftsman does with a loom. 

Next, I'll take "Cadets' Future" for $600, Alex...

dodge spin parry thrust ha!

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7 hours ago, HockeyDad said:

You have your sunshine pumpers and your dark clouds here. Is there no one who can provide a neutral assessment of things? 

sure, some positive, some worries.

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1 hour ago, garfield said:

From the first Google hit, 501c3.org:
 

How long does it take for the IRS to approve 501(c)(3) status? Typically, IRS 501(c)(3) approval takes between 2 and 12 months, inclusive of likely written follow-up questions. Sometimes it takes a little less; sometimes a little more.

Two months, if it ever actually happens, would likely be for those filing the EZ application for 501(c)(3), where annual revenues are less than $250k. For an org with $1m plus in revs, the process is more involved, and generally involves more investigation and back and forth. The last few non-profits I've worked with as a consultant found that the process was six months, minimum, and neither had any history of previous financial difficulties. 

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1 hour ago, Jeff Ream said:

sure, some positive, some worries.

Sounds like most people's lives.  LOL

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3 hours ago, IllianaLancerContra said:

Stupid question from a biology professor who has no idea how finance works

Don’t feel bad.  I know an accountant who doesn’t understand why he has so many kids.

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2 minutes ago, Slingerland said:

Two months, if it ever actually happens, would likely be for those filing the EZ application for 501(c)(3), where annual revenues are less than $250k. For an org with $1m plus in revs, the process is more involved, and generally involves more investigation and back and forth. The last few non-profits I've worked with as a consultant found that the process was six months, minimum, and neither had any history of previous financial difficulties. 

I'm curious if any of those applications' circumstances were actually similar to Cadets' current one.

I would suggest those interested go https://www.irs.gov/pub/irs-pdf/p4220.pdf and scroll to page 10.  The list of requirements to affect a "complete submission" are all items that Cadets' attorney can present right now, with deep operational histories and long and venerable success at providing their mission.  Scrolling a little lower suggests how the IRS reviewer looks at the application.

I'm only suggesting that the IRS agent is going to consider if the application details are complete, as described.  And, yes, Cadets can demonstrate all of those requirements even as operating under the YEA! umbrella.

I would hope that the Cadets' lawyer would cover his submission with a short letter of explanation of the decades that have led up this this circumstance, along with a clear rationale for why YEA! separated from the corps and the non-impact the separation will have on the corps providing the mission experience.  In other words, "This is a continuation under a different umbrella, not new.  It's a continuation of decades of mission served with demonstrable success.  The consideration need be no deeper."

Rubber stamp.

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1 hour ago, Slingerland said:

Two months, if it ever actually happens, would likely be for those filing the EZ application for 501(c)(3), where annual revenues are less than $250k. For an org with $1m plus in revs, the process is more involved, and generally involves more investigation and back and forth. The last few non-profits I've worked with as a consultant found that the process was six months, minimum, and neither had any history of previous financial difficulties. 

But it doesn't say THAT.  It would be just as easy to type "EZ applications will be processed in as little as 2 months, but regular filings could take up to 18 months" (<-- Didn't you post that earlier?)

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