saltydog, I have read through explanations of the IRS 501(c)(3) Tax Exemption rules for charitable organizations, and have followed the rules as closely as possible. Based on the documents I have read, we are legally allowed to operate as a tax-exempt non-profit.
If we ever exceed annual income over $5,000, then we are required to submit the
IRS Form 1023, Application for Recognition of Exemption. (IRS Instructions
to Form 1023) I would already be working on that, except that there is a $400 filing fee!
We are waiting to hear from the CA Franchise Tax Board in response to our filing the equivalent California document,
CA Form FTB 3500A.
