By George Fallar June 12, 2012
So I’m here having a nice chilly Dos Equis ambar (yes it’s ambAr) at my desk after a hard day of work, adding some empty calories and carbs to the 1,000 calorie per day regimen I am currently mostly ignoring. Since I’ve been cruising around the IRS web site lately, I decided to revisit something I looked up some time ago, what are the public disclosure requirements for 501(c)(3) organizations? My faithful readers know that the 501(c)(3) designation means “I pay little or no taxes and thank you for your support, Mr. taxpayer.” We all know I’m talking about the Goldwater Institute and their related buddies the Arizona Free Enterprise Club (AFEC). AFEC is actually a 501(c)(4) corporation currently not in good standing with the Arizona Corporation Commission (Oh you mean WE have to file those forms too?). The rules are different for (c)(4) organizations, but for the purpose of this missive let’s consider them the same.
Here’s some contact information if you’re interested:
Goldwater Institute
500 E. Coronado Road
Phoenix, AZ 85004
Phone: (602) 462-5000 Fax: (602) 256-7045
The Arizona Free Enterprise Club
C/O Steve Voeller
2425 E. Camelback Rd.
STE 495
Phoenix, AZ 85016
Phone: 602-346-5061
The IRS regs (link is here) state that certain tax documents are to be made available for public inspection and copying. This is the information that must be readily available to any member of the public requesting it:
Its exemption application.
- Form 1023 ((c)(3) only)
- Form 1024 or the letter submitted under the paragraphs for which no form is prescribed, together with supporting documents and any letter or document issued by the IRS concerning the application.
Its annual return.
- Form 990, Return of Organization Exempt From Income Tax
- Form 990-EZ, Short Form Return of Organization Exempt From Income Tax
- Form 990-PF, Return of Private Foundation
- Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons
- Form 1065, U.S. Partnership Return of Income.
Form 990-T, Exempt Organization Business Income Tax Return, filed after August 17, 2006. Returns must be available for a three-year period beginning with the due date of the return (including any extension of time for filing). For this purpose, the return includes any schedules, attachments, or supporting documents that relate to the imposition of tax on the unrelated business income of the charity.
That’s a lot of information and I understand it’s incomplete. The interesting items are the form 990 rules. Goldwater has ONE form 990 available on their web site (that I could find), which does not fulfill the requirements as I understand them. I’m not sure what the complete list of documents are that must be provided, it would take some more research and understanding of the tax law to get a complete grasp on it. However, on another page on the IRS web site, there’s the following interesting text:
In general, exempt organizations must make available for public inspection certain annual returns and applications for exemption, and must provide copies of such returns and applications to individuals who request them. Copies usually must be provided immediately in the case of in-person requests, and within 30 days in the case of written requests. The tax-exempt organization may charge a reasonable copying fee plus actual postage, if any. The IRS must also make this same information publicly available.
What the above sounds like to me is that, should anybody care to visit the offices of a 501(c)(3) organization and request the required documents, they would have to be provided immediately. If you wish to request the same via mail, they would have 30 days to comply and could make reasonable charges for duplication and such. Considering the big deal that these two organizations make about providing documents on a timely basis, to the point of going to court repeatedly about the same issue, it would be interesting and maybe even some fun (in a snotty, snarky, annoying way) to swing by their offices (addresses above) and see how their compliance works. Hopefully they won’t read this and have neat little piles of the required documents sitting by their front door waiting for somebody to grab them.
I’m just sayin’.