Why do CARE standards require a registry that asks for donations to be 501(c)3?

Because we believe that registries should be accountable for any donations they receive. Would YOU want to send money to someone who didn't have to account for it? Do you know where that money is going? Are you sure?

Exemption requirements for 501(c)3 specifically state:

"The organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of a 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization." (Search for Application for Recognition of Exemption at http://www.irs.gov/charities/index.html)

Certainly this does not mean that any existing online reunion registry owners who ask for donations, yet are not currently registered as tax-exempt are not reputable. However, one has to wonder why any registry owner would OBJECT to adhering to this standard. What are they hiding?

What is the cost of applying for tax-exempt status?

For an exempt organization that has had annual gross receipts averaging not more than $10,000.00 in the last preceding 4 years (or the first 4) or, a new organization that anticipates gross receipts averaging not more than $10,000.00 during it's first 4 years, the fee is $150.00.

For more information please search for form 8718 at: http://www.irs.gov/charities/index.html

What are the benefits of a tax-exempt status?

Organizations that enjoy tax-exempt status do not pay sales tax and many of their operating expenses can be written off. In addition, people who donate money to registries that are registered as tax-exempt will be able to write off their donations on their income tax return which could mean more donations to your registry.

Where can I get more information about 501c3?

You can find more information at the IRS website, or just follow this link - http://www.irs.gov/charities/index.html


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C.A.R.E. Registries

C.A.R.E. - Coalition for Adoption Registry Ethics

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