501c research

preparing for the upcoming October 13 meeting

if we go the route of 501c6 we would need to amend articles of incorporation and bylaws and complete irs form 1024 with application fee of $850

hi Stephen, What will be the benefits of becoming 501c6 ?

hi @robertovasquez, most importantly would keep tax exempt status

224_IRC_501_C__6__Organizations.pdf (84.1 KB)

Very good research. Do you think we can just try this or should we run it by a lawyer?

This looks like it will work!

-m

Run. Everything. By. A. Lawyer. Do not pass go, do not collect $200

Something to really consider with 501c6:
Profits
Unlike 501©(3) charities, which can operate ancillary activities such as festivals or bake sales for profit, a 501©(6) organization may not oversee any profit-generating enterprises. The organization is also prohibited from offering the same type of services or products sold by its membership. For example, an association of optometrists may only work to improve the industry as a whole. If the organization examines patients or sells eyeglasses, it may lose its 501©(6) tax exemption.

Also appears to be a benefit to having both a 501c6 and 501c3 organizations that are related. So OEMR could go 501c6 and then another separate organization could be created to go 501c3. 501c3 with purpose of public education and charitable fundraising organization (grants, charitable gifts), while the 501c6 organization would be tasked with collaborative promotion, member education and advocacy.

thanks @brady.miller, nice find, so the 501(c)(6) would be a new organization

from the pdf i posted earlier

  1. Its purpose must not be to engage in a regular business of a kind ordinarily carried on for profit, even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining.

an experienced non-profit lawyer might know if it’s okay for a 501c(6) to donate the software
however, recent improvements like http://www.openemr.blog/2017/08/15/2017-08-15-openemr-announces-initial-availability-of-openemr-cloud-on-aws/ can really blur the line

it appears to be too onerous for OEMR to change to 501c(6)

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@stephenwaite
I was thinking the opposite, since getting back the 501c(3) seems not possible. OEMR to 501c(6) and then a new shiny associated org for 501c(3).

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looks like a job for super secretary @robert.down ! :slight_smile:

seriously, we would have to update not only our own info (articles of incorp, bylaws, etc) but with irs, banks, state of nc, state of vt, am i forgetting anyone :wink: but like your logic

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