Re: Transferring to another non-profit

Hi MJ,

On Tue, Sep 29, 2009 at 11:25:56AM -0400, Michael Schultheiss wrote:
> MJ Ray wrote:
> > http://www.spi-inc.org/treasurer/associated-project-howto.html says "Your
> > Liaison may decide that your project is quitting SPI at any time. Any
> > assets and money held by SPI for your project may be transferred to the
> > 501(c)3 US non-profit of your choice, or simply held until expended."
> >
> > Is that a legal constraint in the US for 501(c)3 organisations?
>
> Yes.
>
> > What possibility there is for transferring assets to a non-US
> > organisation if a project wants to end its link with SPI?
>
> An attorney or CPA (Certified Public Accountant) would need to be
> consulted.

To elaborate on what Michael said, we need to ensure the money remains used for
the purposes for which SPI is tax-exempt, and also honor the more specific
donor intent. For non-501(c)(3) organizations, additional steps have to be
taken to ensure this well enough to satisfy the US tax authorities, hence the
consultation with the attorney or CPA.

- Jimmy Kaplowitz
jimmy(at)spi-inc(dot)org