Mounted search and rescue

["irvin lichtenstein" <ilichten1@verizon.net>]

Generally you want to be a 3 not a 4. Certain organizations are guaranteed a
3 by statute. These include (non-profit) volunteer fire companies, rescue
squads, ambulance organizations. There is a $150 fee for organizations that
expect to take in less than $10000 the first year after filing. If you
exceed that number or have been in existence for several years without
filing you may have to pay the higher fee.

There are several pieces of paper you have to prepare. A form 1023 with all
schedules applicable is the start. If there is an EIN already issued check
for the name, organization form, and whether a request for tax exemption was
ever filed or granted.  You will need financial statements for previous
years if the organization already is operating.  These must include where
the money came from and where it went.  Money used for non-program uses must
be strictly accounted for but recruiting, insurance, morale building
activities usually count as program.
Your bylaws must include a dissolution paragraph that specifies under what
conditions the organization will cease operations and how the assets will be
distributed to another similar organization after the bills are paid in
accordance with state and federal law. In Pennsylvania for instance the
county court must approve dissolution of non-profits and the distribution of
assets. You will also be expected to file an information return, 990, each
year for the first 5 years unless you are taking in very small amounts. And
there are penalties for filing late even if you owe no taxes.

You will also have to check with the state to see if you need to file with
the charity regulators (most emergency services groups are exempt or short
form unless fundraising costs exceed a per cent age of the take or you hire
a fundraiser).  Exemptions from state taxes are separate but usually granted
if you have a federal exemption. Some can be significant, such as sales
taxes or fuel taxes on bulk purchases.

The real thing to watch for is permitted and prohibited activities. A
501(c)(3) cannot be political in any way.  You cannot as an organization or
through persons identified as members or officers of your organization
endorse candidates for office, lobby for legislation, or take an official
position on anything.  You can rent your facilities to a candidate for a
rally but you cannot give favor to one candidate over another.  If you are
accused of inappropriate activities you can lose your exemption and have to
pay back taxes and penalties, and maybe do some time.

Irv Lichtenstein