We are looking for any bike co-ops that have tax-exempt status as a
public charity under Section 501(c)(3) of the tax code. Basically, we
have run into a question as to whether and to what extent we may make
retail sales of bikes, bike parts and accessories as part of our
regular operations without (i) paying income tax (as unrelated
business taxable income) and (ii) otherwise affecting our tax-exempt
status. Does your co-op sell bikes, bike parts and/or accessories
directly to the public without those sales being part of your
educational program?
In addition, are there any co-ops out there who are associated or
operated in tandem with a for-profit business. This would be
structured so that the for-profit business supports the not-for-profit
entity.
Finally, we are assuming that most co-ops with tax-exempt status
received their charitable status for education purposes. Are there
any co-ops out there which have received tax-exempt status on another
basis?
The Bicycle Kitchen is a 501c3 nonprofit under the educational category.
Thank you!
Kelly Martin, Operations Facilitator The Bicycle Kitchen/La Bicicocina 706 N. Heliotrope Dr., Los Angeles, CA 90029
W 323.NOCARRO | M 213.210.5631 kelly@bicyclekitchen.com | www.bicyclekitchen.com http://www.bicicocina.blogspot.com
Kelly,
Here at the VéloCity Bike Co-op have 501(c)(3) status, as a public
charity. We do "sell" (suggested donations) refurbished re-cycled
bikes, and bike parts and accessories (new and used), and our tax
advisor says we are AOK, and do not need to pay income tax, but we do
have to pay state sales tax in Virginia, for merchandise
"sales" (suggested donations), but not for services (stand time,
classes, etc.). Hope that helps (yep, I like parentheses).
Regards, John
___________________________
John Patterson | VéloCity Bicycle Co-op | 204 S. Union St.,
Alexandria, VA 22314 | john.patterson@velocitycoop.org | +1
703-835-0699 | Mobile: +1 703-608-3660
On Mar 3, 2011, at 9:07 PM, Kelly Martin wrote:
At RBP we are 501(c)3 status - charitable org, and are tax exempt under Nev. Dept. of Tax.
We operate much like a normal bike shop does except where the IRS doesn't allow us to (ie disbursments of profits to employees)
Our program is largely modeled after the HUB in Bellingham, Washington who operates in the same way. Revenue is generated which goes back into the org, pays employees, rent etc.
We are more or less self-sufficient, with our donations and small grants going to our education and charitable programs.
Hope that helps.
Noah
On Thu, Mar 3, 2011 at 6:32 PM, John Patterson < john.patterson@velocitycoop.org> wrote:
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