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#950726 - 04/28/08 05:15 PM Bank or customer as non-profit?
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
Our bank has been approached by a depository customer to sponsor a charity fundraising dinner to benefit a local 503(c).

First thought - - good cause - - count us in!

Second thought - - you want a deposit account for the checks people are writing - - - excellent - - count us in!

But the charity isn't banking with us. Our customer is giving the funds to the charity. How do we set this up? Do we define our customer as a non-profit entity and throw it our trust to manage? Do we join the customer in a non-profit entity? Do we have a 503(c) corp owned by the bank where we can set up events like this or do other fundraising and open accounts as needed?

I don't want to be the bank with the ads that say "Just make the check payable to Joe; he'll give the $$$ to the charity." And then there are the deduction questions....I'm checking our state laws, but would appreciate any help.

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General Discussion
#951901 - 04/30/08 05:09 AM Re: Bank or customer as non-profit? Cornfed Turtle
Jokerman Offline
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Joined: Nov 2003
Posts: 12,846
Turtle - I assume you mean 501(c)(3). Beyond that, I don't understand what you're asking - they want you to make a donation to sponsor a dinner. Surely this isn't the first time your bank has been asked for a donation, is it? What's the issue?

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#953770 - 05/02/08 05:34 PM Re: Bank or customer as non-profit? Jokerman
Cornfed Turtle Offline
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Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
Sorry I was confusing. One of our customers has come into some cash and would like to have a fundraising evening for a local charity. He wants to use his cash to sponsor the evening and he wants us to join him.

He isn't a non-profit. We definitely aren't a non-profit. Local folks are already gearing up and wanting to write checks out to some foundation.

Our customer thought our trust department could collect the checks and write a check to a charity (when he picks one.) And we can.....but how do we title the account? Our trust department approached the customer about setting up his own charitable organization, but he doesn't want to (for whatever reasons.)

I think we have decided to look into setting up our own corp although there is still some debate about how to title. We'd want to use the corp for other charitable purposes. But then how do we collect checks that are made out to "Joe Bob's fundraising dinner." I'd like Joe to get credit for thinking of others with his windfall, but I wish he had been advised to set up something on his own. There is a community foundation where I lived before, and I'm thinking of calling them to see how they set it up. Obviously, they run these things. And, they bank with someone.

Thanks again, Jokerman - - -sorry for the rambling.

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#954094 - 05/03/08 01:10 PM Re: Bank or customer as non-profit? Cornfed Turtle
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
"I think we have decided to look into setting up our own corp although there is still some debate about how to title. "

Who is "we"? The bank?
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#955487 - 05/07/08 02:51 PM Re: Bank or customer as non-profit? rlcarey
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
Yes the Bank. Probably at the HC level rather than under the Bank umbrella. We're getting opinions from our attys, CPAs and, of course, the regulators. I hope they agree to put it there. I have selfish reasons for that, but they are still reasons.

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#955628 - 05/07/08 05:59 PM Re: Bank or customer as non-profit? Cornfed Turtle
Milby Offline
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Joined: Apr 2007
Posts: 953
Tejas
This seems like an awful lot of work for money that you'll never get any benefit from. You would be better to just say "we'll happily make a donation after we have seen and approved the charity." Leave it at that. You are spending how much on lawyers and CPAs to get a low-dollar, temporary account? And talk about risk - the fund raising business is full of crooks, thieves, and embezzlers. Why risk your bank's reputation in such an endeavor?

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#955820 - 05/07/08 10:23 PM Re: Bank or customer as non-profit? Milby
Pale Rider Offline
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Joined: Aug 2002
Posts: 34,318
under the Lone Star
It can take upwards of a year to get the IRS to issue a final determination letter for a 501(c) 3. It is a time consuming and tedious process.
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Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


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