Mounted search and rescue

[Una Smith <una@lanl.gov>]

L. Mabry wrote:
>what restrictions are there as to how the funds can be spent? ie, 
>equipment, training, etc.??? Does it vary based on what type of corporation 
>you are? 

No restrictions, other than that expenditures are consistent with
your purpose as defined in your articles of incorporation etc.,
and legal for the nonprofit category you're in.  As far as MSAR
is concerned, categories 501(c)(3) and 501(c)(4) are the same, but
if your unit has other functions than SAR, it may benefit from 
the more liberal rules (a trade-off against fewer tax benefits)
applied to other categories.  Note that only some 501(c)(4) orgs
are equivalent to 501(c)(3) orgs in the eyes of the IRS;  rescue
squads are a small sub-category within 501(c)(4).

Much of this is explained on the IRS Exempt Organizations (EO)
website, a resource I recommend:  http://www.irs.gov/charities/.
Lately, its name has been changing, to Charities & Non-Profits,
and some of its content is now hard to find, unless you search
the IRS site for "exempt organizations".

Each of the three most common categories I have found for MSAR
units is covered under a different entry in left-hand navigation
bar on the IRS website:
501(c)(3) see Charitable Orgs
501(c)(4) see Social Welfare Orgs
501(c)(7) see Social Clubs (e.g., local horsemens' associations)

With respect to the differences between 501(c)(3) and 501(c)(4),
and the special status of 501(c)(4) rescue squads, download the
document http://www.irs.gov/pub/irs-tege/eotopici03.pdf, titled
"IRC 501(c)(4) Organizations" and read especially pages I-25-26.

Good luck,

        Una Smith
        Santa Fe County Sheriff's Posse, in New Mexico