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

[David Powell]

Nick,

Thanks for the info. I'm from Harford Hackerspace in Baltimore/Harford
MD. We just got notice that we are now incorporated as a non-stock
corporation with Maryland actually found out today. WooHoo!  Now we
can setup a bank account and start collecting dues.

In the next few weeks we will star working on our IRS 1023 form. If
you don't mind I would like to go over it with you guys to compare
notes and possibly get some help and save us a little of the hard work
you have already done. So I will be contacting HacDC in the near
future.

Just F.Y.I. we found a temporary garage to meet in so we are one step
closer to being a well formed organization.

David Powell
info at harfordhackerspace.org

On 6/11/09, Dave Menninger <dave.menninger at gmail.com> wrote:
> 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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