Tag Archives: public charities

Buildings for Charitable Organizations: 501(c)(3)

From time to time Hansen Pole Buildings is contacted by individuals who are looking for a “price break” for being charitable organizations. Popular examples are for helping military veterans, terminally ill children or animal rescue shelters. While the great majority of these requests seemingly are for good causes, there are so many requests and, in order to at least make some sort of profit to keep our doors open, some criteria need to be established to qualify.

Charitable OrganizationsIn this case, we let the U.S. Government establish the criteria to qualify for a discount for all charitable organizations. Any 501(c)(3) exempted organization qualifies for a 10% discount off from the everyday retail price of a Hansen Pole Building.

501(c)(3) exemptions apply to corporations, and any community chest, fund, cooperating association or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, to foster national or international amateur sports competition, to promote the arts, or for the prevention of cruelty to children or animals.

The two exempt classifications of 501(c)(3) charitable organizations are as follows:

A public charity, identified by the Internal Revenue Service (IRS) as “not a private foundation,” normally receives a substantial part of its income, directly or indirectly, from the general public or from the government. The public support must be fairly broad, not limited to a few individuals or families. Public charities are defined in the Internal Revenue Code under sections 509(a)(1) through 509(a)(4).

A private foundation, sometimes called a non-operating foundation, receives most of its income from investments and endowments. This income is used to make grants to other organizations, rather than being disbursed directly for charitable activities. Private foundations are defined in the Internal Revenue Code under section 509(a) as 501(c)(3) organizations, which do not qualify as public charities.