Mounted search and rescue

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

There are two aspects to filing-- first it is a stamp of approval by the IRS
and can result in saving more money for the group in other ways. In PA you
must have an IRS determination if you are not a government (township,
county, state agency) to be exempt from state taxes (sales, fuel, income,
etc.).  You also become exempt from most filing fees with an IRS letter. The
PA Office of Charitable Organizations also accepts IRS filings so you don't
have to have a separate audit.

It is also harder to obtain an exemption after the fact. It is better to
file now than have to prove that since day 1 of operation you spent all the
funds on your charitable purpose or allowed administration costs. The
Commonwealth changed the rules on the VFC's in the state to make them more
accountable for donated funds. Every VFC and every Relief Association had to
file for a 501(c)(3) and a new state exemption. If you think a 1023 is fun
with no money and no history try filing it for an organization that receives
$100,000 in tax money every year and maybe $50,000 in donations and is 100
years old. Fortunately, fire companies are exempt by statute so it is just a
paperwork exercise, but tons of paperwork.

Your SO is treating you as an independent organization with its own set of
books if wants an IRS filing, which is probably a good thing as it lets you
keep any money donated to you in separate accounts.

Irv Lichtenstein