Does anyone know the legal rules about donation web pages?
Does anyone know the legal rules about donation web pages?
Question Details. I want to start one. I cannot work and waiting on funding hopefully from the government? Or any ideas on how to start one?
Answer:
You cannot collect donations from US citizens unless you are a qualified tax exempt organization with Internal Revenue Service approval.
To get that approval, you must complete IRS form 1023, pay a user fee of at least $500 and mail it in for approval.
If you start a donation website and collect donations without approval, you will be breaking the law. You would be taxed on all the money you receive and may be fined as well.
In addition, your state's attorney general may prosecute you for operating an illegal charity.
If you are not registered and you use the donations for your personal use (you cannot work so I am assume you want the donation site to pay your bills), you can be charged with fraud.
See a tax lawyer in your area to help you do this right.
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