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

[Dave Menninger]

Thanks so much for this info, Nick.  We're in the beginning of
starting a hackerspace in Cincinnati and appears we are just a few
steps behind HacDC.  This info and reading the other documents on your
wiki have both been extremely helpful.

We're probably going to file as a 501(c)3 also, but we initially
considered filing as a 501(c)7 - a social club.  I'm wondering if any
other hackerspaces went that route, and if so do they have any
comments on how that compares with being a 501(c)3.

Thanks,
Dave

On Thu, Jun 11, 2009 at 2:41 PM, Nick Farr (HacDC)<nickfarr at hacdc.org> wrote:
> 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
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