DBAs and LLCs and 501(c)3, oh my! (was Re: [Noisebridge-discuss] Meeting notes posted for Thu 7th)

Seth David Schoen schoen at loyalty.org
Fri Feb 8 23:45:21 UTC 2008

Meredith L. Patterson writes:

> I must have missed the part where 501(c)(3)s aren't supposed to have 
> interest-bearing accounts -- did someone turn that up in research 
> somewhere? Plenty of large, well-known nonprofits do have interest-bearing 
> accounts for the donations they receive; the interest is flowed back into 
> the operating expenses of the organisation.

I think the notion here was just that if Noisebridge does receive
interest income before becoming Federally tax-exempt, or if never ends up
becoming Federally tax-exempt, it might end up having to pay taxes on
that income (or some of the individuals in whose name the account was
registered might end up having it reported as their own taxable income).

Seth David Schoen <schoen at loyalty.org> | Wol dir, werlt, daz du bist
     http://www.loyalty.org/~schoen/   | also freudenriche!
     http://vitanuova.loyalty.org/     |           -- Carmina Burana

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