A local school district in my area is looking to sell. What are my steps...by the way, I am the radio instructor at that school.
-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
How to buy a non-comm
- Thread starter butlerguy03
- Start date
You will probably need to create or acquire a not-for-profit corporation and apply with the IRS for it to become a 501(c)3 tax exempt entity. You probably need to obtain the services of a communications attorney who has conducted a rodeo or two of this kind.
I know the rules and regs on LPFMs clearly spells out the 501(c)3 requirement. I don't know if there are variations (can you say LOOPHOLE) for other non-comms.
Get on the phone and talk to some non-comms not owned by schools and see if you locate a manager/administrator who has been through this already, and may be able to direct you to an attorney or consultant who will work with you at reasonable prices.
I know the rules and regs on LPFMs clearly spells out the 501(c)3 requirement. I don't know if there are variations (can you say LOOPHOLE) for other non-comms.
Get on the phone and talk to some non-comms not owned by schools and see if you locate a manager/administrator who has been through this already, and may be able to direct you to an attorney or consultant who will work with you at reasonable prices.
Goat Rodeo Cowboy said:
Actually, that is not entirely correct. For LPFM, the licensee has to be not-for-profit, but it is not a requirement that you have 501(c)(3) status. It does make the argument easier to make if you do have the blessing of the IRS, though.
Getting IRS approval is easier for a start-up than it is for an existing entity that has already filed taxes under different circumstances. You can usually get provisional 501(c)(3) status in 90- 120 days, but you will not get final approval for over a year. The IRS likes to do an audit after one year to see if you really are operating as a non-profit. You should consult a CPA or Tax Attorney for more information. Incidentally, there are many versions of 501 status that are not for profit. (c)(3) just means that donations made to the entity are tax deductable to the donor.
As far as I know, the rules are similar for NCE ownership. You will need to establish some kind of non-profit operating structure, but you'd be amazed about how many individuals are NCE licensees. Often they are licensed to the "Reverend ****" who is a preacher - either ordained or self appointed. That seems to fly with the Commission.
The advice to seek professional help is a good one though. NCE stations are bought and sold on a regular basis. It is not a do it yourself project. The first step (other than consulting a communications attorney) is to come up with a Sales Agreement between the current licensee and the prospective purchaser. That agreement becomes a part of the FCC Transfer Application. Once all the details are worked out, the application is electronically submitted to the FCC for approval, which typically takes about 45-60 days, unless there are complications.
There are quite a few attorneys who specialize in this sort of thing. If you will send me a PM, I can give you a couple of names.
The board has been told that a recommendation to eliminate the program will not happen on Feb 11 as planned pending discussions with us (the staff) and possible negotiations for a dual program with a local college.
If we are elimiinated Feb 11, I will be in contact with anyone who wants to help or I can get to help asap. Thanks for all the info guys!
If we are elimiinated Feb 11, I will be in contact with anyone who wants to help or I can get to help asap. Thanks for all the info guys!
YOu can file with the state as a nonprofit first. Get that squared away. You'll need to form a board of directors (fid out minimum for your state).. it could be friends, cousins, etc. - make sure the people are people you truly trust. I know a board that voted the president off the board and they acquired his station at no cost. .. he had put over a couple of hundred thousand of dollars inthe stations and all that money went to those he assigned to the board... How's that for THANK YOU.
Next buy the station and AFTERWARD apply for 501 (c) 3 status.
josh
Next buy the station and AFTERWARD apply for 501 (c) 3 status.
josh
Yes, you do want 501 (c) 3 status. It is imperative that you acquire that.
You cannot have businesses write off donations to you as gifts unless you acquire non-exempt 501 (c) 3 status. You need to become a noncomm in order to own a noncomm. Either you acquire the entire organization with its 501(c) 3 status or you start your own nonprofit.
You can't operate indefinitely without exempt status. josh
You cannot have businesses write off donations to you as gifts unless you acquire non-exempt 501 (c) 3 status. You need to become a noncomm in order to own a noncomm. Either you acquire the entire organization with its 501(c) 3 status or you start your own nonprofit.
You can't operate indefinitely without exempt status. josh
josh said:
Most businesses have the ability to write off underwriting as an advertising expense. To them it is usually six to one, half dozen to the other. Even so, there may be times when a business wants to just make a donation.
If you want your listeners or other individuals to contribute, then 501(c)(3) status is important, since they will want to write off the donation. There are also opportunities for 501(c)(3) entities to get grants and sometimes get equipment and software donations. For instance, there is an organization called Tech Soup that has lots of attractive offers for nonprofits on software (nearly free), but you need the IRS blessing to participate.
Since rules of incorporation vary from state to state, I still think you should visit with an attorney who specializes in tax law. Do this before you start anything. It will be money well spent, and may prevent you from making a decision that you regret later on.
The biggest mistake you can make is to assume that you already know all you need to know about the world of nonprofits. Trust me on this one. Most of us know just enough to be dangerous, unless tax law happens to be your line of work. We'd all like to think that the law is fair balanced and completely logical. The truth is it isn't. There are pitfalls to be found. That is why we should all seek professional help.
Of course, anyone participating in, or reading this discussion probably needs another kind of "professional help" because you have an interest in broadcasting. We must all be crazy….
I agree wholeheartedly! You need to consult with an attorney well versed in business law. Specifically, he needs to have expertise in not for profit organizations. I would like to go one step futher here.
Your tax returns MUST be done by accountants that process non-exempt organization tax filings on a regular basis. DO NOT choose any accountant. Most don't know the intricacies of not for profit status and can as such make huge mistakes.
josh
Your tax returns MUST be done by accountants that process non-exempt organization tax filings on a regular basis. DO NOT choose any accountant. Most don't know the intricacies of not for profit status and can as such make huge mistakes.
josh
- Status