Quote:
Originally Posted by dever860
Can someone explain exactly how a 501(c)(3) status works? I know LCA HQ has a 501c3 tax exemption. Can alumni associations also get this? I think I am just confused on the whole matter on what and what you cannot do with a tax exemption as a non profit organization. Why can't our alumni association gain this status, and accept donations to say... build a new house?
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Typically a 501(c)(3) corporation is restricted from spending dollars on brick and mortar. Educational expenses are OK, that is more or less what a 501(c)(3) is for; however, brick and mortar, like for a house, is generally not an acceptable use for those tax treated dollars.
Dollars given to the Lambda Chi Alpha Educational Foundation fall under the umbrella of 501(c)(3) as educational dollars. A check to Lambda Chi Alpha, Inc. is, I would presume, not accorded the same tax treatment.
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