[hackerspaces] Examples of IRS 1023 froms Nonprofit Makerspaces

[johnrichardlogan at gmail.com]

At MakeHaven <http://makehaven.org/> in New Haven we have aimed to achieve
nonprofit recognition since our founding. The process has been long but it
seems we are getting closer to the end. A challenge is that we seem to have
gotten a reviewer at the IRS who is not familiar with the concept of
Makerspaces and Hackersaces and so we are needing to make the case for why
we qualify as an educational organization.

We have had several correspondence with the reviewer and she is now saying
we would possibly qualify for a less tax beneficial category C4
organization. The rational being that a makerspace is similar another group
with dangerous equipment, a gun range, as named in a previous IRS ruling.


It does not appear you qualify for exemption under section 501(c)(3)
> because you are not exclusively educational. Only 35% of your activities
> are devoted to educational workshops and seminars. The bulk of your
> activities is providing a place for members and the public to work on their
> own projects. Basically, in exchange for membership dues, attendees can use
> your equipment for building create and work on their projects.
>

...

Revenue Ruling 66-273 describes an organization qualified for exemption
> from Federal income tax under IRC(c)(4) where it provides a community with
> supervised facilities for rifle, pistol and shotgun practice and
> instructions in the safe handling and proper care of weapons. The general
> public is permitted full use for the organization's facilities. Qualified
> members of the organization conduct classes. The organization was operated
> exclusively for the promotion of social welfare if it is primarily engaged
> in promoting in some way the common good and general welfare of the people
>  of the community.


> You are similar to the organization described in that revenue ruling. Like
> that organization you provide facilities for members of the community to
> create, repair, construct, and tinker on self -selected projects.
> Furthermore, you provide instruction on the use of your equipment and
> provide assistance guidance with the projects.

...


We see it differently. We see our organization as having broader
educational value.

We think MakeHaven and other makerspaces are collaborative workshops where
people gain practical hands-on experience with new technologies and
innovative processes that most would never have the opportunity to explore
otherwise. As a means to that learning, they can design and build projects.
MakeHaven uses experiential and cooperative learning as our primary
methods, which are supported by more periodic and more formal structured
activities such as workshops.

We see it as well established that solving problems and project based
learning are powerful approaches to carrying out an educational mission.
However we need to convince our reviewer of this.

I have asked around and found a very qualified local lawyer who's firm has
granted some probono time to help us through this (hopefully hast stage) of
the process. Her request of me was to get " the complete Form 1023,
application for recognition of exemption" from other maker and hackerpaces
who were successful in their applications.

Following the rules of "Google it before you ask a listserve" I found these
publicly posted examples.

   - Noisebridge at: https://www.noisebridge.net/wiki/501c3app
   <https://www.noisebridge.net/wiki/501c3app>
   - HacDC: http://wiki.hacdc.org/index.php/Form_1023_Draft
   - Dallas Makerspace:
   https://dallasmakerspace.org/wiki/IRS_Form_1023_Draft

It seems important that we don't get a trend started of getting Makerspaces
denied nonprofit status. I how many others are having such trouble? Does
anyone know of another IRS ruling which is favorable to makerspaces?

My request of you (nonprofit / maker hackerspaces) it to share with me your
successful nonprofit applications, and associated documents?

If the group would find it useful I can compile and make these documents
available as reference to other spaces.

Best,

J.R. Logan
MakeHaven <http://makehaven.org/>
Board Treasurer
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