Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Do you know if there a legal/tax impediment to getting the pass-through classified as a not-for-profit? Or did you just mean it makes it harder to implement as a traditional startup?


The pass-through would have to set up as a foundation that then issues grants to other non-profits. That isn't an easy process. I won't donate anything unless there's a tax advantage. The reason is that non-profits that are registered 501 3(c)'s have certain reporting requirements. If they aren't registered, there's little accountability.


It appears that Network For Good largely operates this way as a "donor-advised fund":

http://en.wikipedia.org/wiki/Donor_advised_fund


From their site:

We’re a nonprofit too! Dollar a Day makes no money, in any way, from donations on this site. Dollar a Day was built by a team of (almost entirely) volunteers.


Are they a 501 c3? Nope? Then no tax deduction. Calling yourself nonprofit and actually being a non profit are not one and the same under tax law.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: