Guatemala is on the Horizon

Starting off with exciting news is always a wonderful. From October 4 to the 11th, I will be in Zacapa, Guatemala along with other missionaries who are hosting a dental clinic to the city of Coneviza. Although I have absolutely zero knowledge/skill for dental work, I will instead be meeting with the community leaders (cocode), the school board, and pastors in the area to discuss the plan in creating the Celeste Mission House as well as a nonprofit organization in Guatemala that will be like a sister to the one that I am creating in the U.S. It would be easiest and safest to create organizations in each country, especially for liability purposes. If internet is available then I will be much more active in posting each day while in Coneviza. The photo below is the view from the mountain that the Celeste Mission House could be built:

Matthew 7:24-27 Build upon the Rock

Back to business. A week's worth of nonprofit learning involved a lot of terminology and math (disclaimer- my undergraduate studies only required one math class, so I am a bit rusty). Here are the basics from Mancuso's text:

Chapter 4

• Public Charity Test- must be obtained along with 501(c)3 tax exempt status
• 1. Form a nonprofit that automatically qualifies
• 2. Derive most of the support from the public
• 3. Receive most of the revenue from activities related by tax exempt purposes
• Public Support Test- meaning: the nonprofit is classified as publicly supported, and the public charity must regularly solicit funds from the general community
• Must receive substantial portion of the funds from broad based public support sources
• Note to Self: May not meet because will rely on few private donors and/or grants, but can let the IRS decide
• The 1/3 or 1/10 figure of public support (math time!)

(high) --> public support 

(low)--> total support figure

= % of final public support

or

public support/total support figure = final public support %

• Public Support- the funds from private and public agencies and contributors from corporate and individuals donors
• "Normally"- is that the organization must receive either 1/3 or 1/10 of its total support from public support sources
• Government Unit- is considered public support (Ex. federal or state grants)
• Membership Fees- are public support if the member does not receive anything of monetary value in return
• Exempt Activities Support Test- the status of a 501(c)3 if not a public charity or a public support test candidate
• 1. Receive normally more than 1/3 of total support in each tax year as qualified public support (Ex. gifts, grants, contributions, membership fees, or gross receipts)
• 2. Must normally NOT receive more than 1/3 of its annual support from unrelated trades, businesses, gross investment income(s)
• Gain public support from: individuals, government agencies, other 501(c)3
• Note to Self: there is one major limitation which in any tax year, receipts from individuals or government units from the performance of exempt purpose service that exceeds $5K or 1% of the organization's total support for the year must be excluded from the organization's qualified public support figure
• Note to Self: the IRS will classify all 501(c)3s as private foundations so MUST change/apply to be a public charity
• Foundations are extremely restricted and monitored

The next chapter was about tax beneits and reporting requirements. To spare ya'll the explanations here is relative information:

• Nonprofits can apply for exemption to corporate income state tax
• Usually automatically exempt with 501(c)3 status
• But may have to notify the Department of Revenue
• IL- automatically recognized and can apply for sales tax exemption
• TX- separate application required but determination follows federal ruling (a.k.a. if given 501(c)3 status by the federal government then the state must follow suit with the tax)
• Generally have to report yearly to "register" existence (a.k.a. that the nonprofit is still alive)

I will close with a few questions to whoever is reading this blog (and thank you for taking the time out of your busy day/night to glance over this post!!!!) Any questions? Any thoughts? Any concerns? Any suggestions/ guidance/ words of wisdom that you would like to share? Want to be involved in some way? You interested to learn more about Zacapa, Guatemala? (If this is so, then do not worry because in a few weeks I will be researching all about Guatemala and how missions/the history of missions began in the area)

Matthew 7:24-27
Everyone then who hears these words of mine and does them will be like a wise man who built his house on rock.
And the rain fell, and the floods came, and the winds blew and beat on that house, but it did not fall,
because it had been founded on the rock.
And everyone who hears these words of mine and does not do them will be like a foolish man who built his house on the sand.
And the rain fell, and the floods came, and the winds blew and beat against that house, and it fell,
and great was the fall of it.