Serving Southern Jefferson County in the Great State of Montana

Dear Editor: A Tax Exempt Charitable Organization Can't Donate to a For-Profit Entity

Dear Editor,

I am neither a lawyer nor a business advisor, but I have danced with a few 501C3s.

A tax-exempt charitable organization may or may not have a relationship with a business or entity. The entity may sever that relationship, but that doesn't dissolve the 501C3.

The charity can only dissolve by not renewing its certificate with the State or by a majority vote of its officers. Before that, it could only deal with tax-exempt funds by following the outlines of its charter or by-laws. It cannot transfer tax-exempt funds to an entity that is not tax-exempt.

At the time of dissolvement, the...


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