[hackerspaces] US hackerspaces - corporation formation and 501(c)3 status

[Nick Farr (HacDC)]

At HacDC, we're in the process of going through our 501(c)(3) application now.

You might find these resources from HacDC helpful:

http://wiki.hacdc.org/index.php?title=Form_1023_Draft
http://wiki.hacdc.org/index.php?title=Articles_of_Incorporation#4Third_Article

> Additionally, for spaces that have gone the 501(c)3 route, I assume
> they claim to be operated specificly for scientific purposes? (as

Absolutely not.  HacDC was organized for charitable, educational, AND
scientific purposes.

Most hackerspaces under the design patterns would satisfy all three
criteria.  If a corporation running a hackerspace makes a good faith
effort at engaging the public, providing a space where people can
repurpose technology (i.e. charitable), learn more about technology
(educational), and provide an avenue where people can conduct research
or collaborate on advances or new applications of technology
(scientific), then it would meet all three criteria.

In terms of the application, the IRS is looking for any program that
meets your purposes.  While we don't think of what we do in terms of
"programs" in the classical sense, some of our activities will be
framed in those terms for our application.

Look in the Internal Revenue Manual, part 7, Chapter 25 for more
discussion on this:  http://www.irs.gov/irm/part7/ch10s03.html

> of spaces bylaws we've seen lots of statements like "contributing to
> the international commnity" which is great- except that my
> understanding is that a non-profit needs to give back to it's local
> community.

That's not necessarily so...as long as the organization "gives back",
the who or where is not of issue to the IRS.  Of course, state and
municipal governments may differ, but that's a matter to take up with
your attorneys.

> While that is certainly attainable, I am curious if anyone
> has had trouble being qualified since they don't specificly state they
> plan to benefit their local community?

The BIG thing to remember is that the IRS, most governments, etc. WANT
you to succeed as a non-profit.  They are mostly out to help anyone
who is making a good faith effort at achieving their status.  As long
as you're not in it for personal gain, they will work with you until
your application is complete.

When I was working on the Hacker Foundation 501 app, we ended up in a
two-letter-deep correspondence with the IRS to give them what they
needed so they could grant us 501(c)(3) status.  They're very unlikely
to reject you outright, they're much more prone to send you a letter
asking for more details so they can give you the status you need to go
about your work.

Let me know if you have any other questions!

-- 
Nick Farr / http://nickfarr.org
Washington, DC, 20013-1208 | +1 (202) 316-5850 | Fax: +1 (866) 536-2616
Sent from Washington, DC, United States