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#761327 - 06/26/07 06:41 PM NOW qualification?????
biz Offline
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Joined: Nov 2005
Posts: 1,032
Midwest
If an organization is a non-profit (a medical care facility), not incorporated, and is not "operated primarily for religious, philanthropic, chariable, educational, political or similar purpose", can it maintain a NOW account.

Don't non-profits have to meet both guidelines to qualify for a NOW? Or would this fall under "similar purpose."

Thanks Have I told you how much I appreciate you all today!

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#761386 - 06/26/07 07:08 PM Re: NOW qualification????? biz
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
If they are not incorporated - what are they?
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#761439 - 06/26/07 07:35 PM Re: NOW qualification????? rlcarey
biz Offline
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Joined: Nov 2005
Posts: 1,032
Midwest
"They" describe themselves as a non-profit organization.

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#761452 - 06/26/07 07:41 PM Re: NOW qualification????? biz
RR Joker Offline
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RR Joker
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The Swamp
Biz...even a non-profit, so far as I know...maintain a non-profit "corporate" status. If it is a non-profit corporation (and we have medical facilities that fall in that category as well), then they can maintain one. Ask for their articles/business license, etc...you can also ask for verification of their IRS status.
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#761530 - 06/26/07 08:12 PM Re: NOW qualification????? RR Joker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Joker is right - they have to be some type of entity. What documents are you planning to gather for CIP? They can't just be an "organization" to qualify as a non-profit.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#761551 - 06/26/07 08:21 PM Re: NOW qualification????? rlcarey
biz Offline
Diamond Poster
Joined: Nov 2005
Posts: 1,032
Midwest
I should probably add this account has been open for a number of years and its the old "we didn't get that stuff back then" and "I know old Joe and Joe said . . ." then I review accounts, (because its the first time being done by an internal audit function) and so now you have the rest of the story . . . so "if" we can get their "entityship" (is that a word) decided as a non-profit corporation, must they also be operated primarily for religious, philanthropic, chariable, educational, political or similar purpose", to qualify. Just being a non-profit doesn't qualify them, right? wrong? or should I go home now?

Thanks you guys (although I shouldn't assume that Joker is a guy).

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#761587 - 06/26/07 08:30 PM Re: NOW qualification????? biz
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
I would require them to provide a copy of the IRS determination letter stating the type of organization - i.e., 501(c)(3), etc., or move them to a DDA account. You really have no choice now that you have identified this issue. Alternatively, they could provide you with their latest Form 990 that they filed with the IRS and that should show their organization type.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#761644 - 06/26/07 08:47 PM Re: NOW qualification????? rlcarey
biz Offline
Diamond Poster
Joined: Nov 2005
Posts: 1,032
Midwest
Thanks Mr. Carey-I really appreciate your help.

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