If I want to start a website but donate money earned to different charities, does that qualify for 501c3 status?

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If I want to start a website but donate money earned to different charities, does that qualify for 501c3 status?

Money earned minus operating expenses pertaining to the website

Asked on May 18, 2012 under Business Law, Texas

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

A lot of different factors could influence whether or not the business would qualify as a 501(c)(3) non-profit.  Just because an business donates it's profits to a charity does not automatically qualify as a non-profit.  The purpose of the organization will also control whether or not it will qualify.  For example, a church or charity it would qualify because the purpose from the get-go was for a purpose which qualifies under the tax code.  The purpose has to be set out from the inception of the entity.  This means that you can't start the website with one purpose and then switch the purpose later.  If you really want to set up a 501(c)(3) entity, you should gather your paperwork and visit with an attorney or accountant that helps non-profits so that you get advice that is specific to your purposes and objectives.


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