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Ganezh [65]
2 years ago
14

Jan and Dean decided to form a charitable organization, I Love Rock N Rollers, to provide funding to assist former rock and roll

group members who have become homeless. They are planning to hold a "mini-Woodstock" event to raise money, with music by groups from the ‘60s and ‘70s. The event will offer food and beverages, and the sale of memorabilia related to the event. Before they go any further, Jan and Dean need to:________
A. Prepare articles of incorporation and bylaws, obtain an EIN from the IRS if the organization will have employees, apply for permission to solicit charitable contributions and apply for 501(c)(3) status from the IRS.
B. Prepare articles of incorporation and bylaws and file them with the state, obtain an EIN from the IRS if the organization will have employees, apply for permission to solicit charitable contributions and apply for 501(a) status from the IRS.
C. Prepare articles of incorporation and bylaws and file them with the state, obtain an EIN from the IRS, apply for permission to solicit charitable contributions and apply for 501(c)(3) status from the IRS.
D. Prepare articles of incorporation and bylaws, obtain an EIN from the IRS, apply for permission to solicit charitable contributions and apply for 501(a) status from the IRS.
Social Studies
1 answer:
pishuonlain [190]2 years ago
3 0

Answer: C

Explanation: It is important to have the services of a lawyer and accountant well versed in fundraising so as to advise on proper steps to take in order to avoid breaking rules and laws governing charitable organizations. They'll both help in preparing articles of incorporation and the bylaws

They have to register as a 501 (c)(3) with the IRS as this allows them to operate as a tax exempt, not for profit organization.

Also, the EIN (Employer Identification number) is needed whether the organization has paid employees or not. It is a unique number that distinguishes the organization from any other entity. While names may be similar, the EIN is very precise.

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