-
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
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Purchasing a non com station
- Thread starter bholcomb
- Start date
and I think your organization will need to meet the I.R.S. regs to qualify as a "Not for Profit" organization under our tax laws.
No actually you do not have to be a 501(c)3 with the IRS to hold an FCC license for a non-com. Just need to be a non-profit organization that is registered with a State.
As a practical matter, does anyone operated an NCE with a not for profit organization that is NOT the holder of a 501(c)3 tax exemption? If so, what are their sources of income? I guess a school could set up a subsidiary corporation (NFP) to hold the license and use school funds to operate the station and not have a tax exemption need.
Who else is in a circumstance where there is no need for 501(c)3?
A church could establish a subsidiary NFP but the church probably holds a 501(c)3 exemption at the parent level.
I guess a school could set up a subsidiary corporation (NFP) to hold the license and use school funds to operate the station and not have a tax exemption need.
I know a few Boards of Education that applied, using the Board as the company, and the school principal as the GM. A college I know used the Board of Trustees.
There are quite a few NCE stations that are simply non-profits per the laws of the state where they reside. They operate like any other NCE but their 'donations' and underwriting are not tax deductible although perhaps on state taxes if the state allows such. The other things is a non-IRS approved entity has virtually no chance at any grants except through some back door method. Since many businesses that buy underwriting write it off as a business expense under advertising/marketing, they would not want to take the deduction as a donation. Plenty of listeners that would contribute do so because of the station versus the ability to take a deduction on their taxes. The truth be told, many do anyway as the amount is minimal and they have little concern over if the entity they donated to was a 501c3 or otherwise.
Most such stations are smaller NCEs perhaps without the connections, knowledge and budget to go for a 501c3 or they prefer the concept of less scrutiny via a state non-profit status. As an applicant myself, the 501c3 can come later. It is too time consuming and for me, costly as I'd hire someone that knows what they're doing. The way I see it, is once I test the waters we'll either go for it or not but certainly not with dollars from our pocket but rather dollars already obtained by the non-profit. I know the IRS likes to review you via your website (you almost have to have one for 501c3) and they watch what you do to be sure you don't jump over the boundaries of what you can do. That stuff gets a little tricky sometimes. Still I recognize a 501c3 is likely the option all should aspire to.
Most such stations are smaller NCEs perhaps without the connections, knowledge and budget to go for a 501c3 or they prefer the concept of less scrutiny via a state non-profit status. As an applicant myself, the 501c3 can come later. It is too time consuming and for me, costly as I'd hire someone that knows what they're doing. The way I see it, is once I test the waters we'll either go for it or not but certainly not with dollars from our pocket but rather dollars already obtained by the non-profit. I know the IRS likes to review you via your website (you almost have to have one for 501c3) and they watch what you do to be sure you don't jump over the boundaries of what you can do. That stuff gets a little tricky sometimes. Still I recognize a 501c3 is likely the option all should aspire to.
- Status
- This thread has been closed due to inactivity. You can create a new thread to discuss this topic.