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[teacherartexchange] 501-3C Tax Question (Art Related)


From: Woody Duncan (woodyduncan_at_TeacherArtExchange)
Date: Wed Sep 06 2006 - 13:37:31 PDT

If anyone has experience with this issue, please let me know.
The New Mexico Watercolor Society gained 501-3C status
with the federal tax folks about the time I moved here 2 years ago.
They have to remain non profit. I think we are being too cautious
about money matters. We removed images of our members
watercolors from the web site. We don't sell artists work at
exhibits. We don't post prices next to the art on display. We ask
prospective buyers to contact each artist directly.
We don't take a percentage of sales, but we do ask the artist to
donate a percentage back to the society.

Is anyone out there involved with a 501-3C ? What do those groups
do. Aren't non-profits allowed to do things to raise money to use
for operating expense ? I'm just looking for help here. I will put
the question to other watercolor groups around the country to
see haw they handle the issue. And, yes I'll solicit legal advice ?
Next year, I'll be the president of this group and I don't wish
to be flying blind.

Our exhibitions committee, which met this morning, is frustrated
and seeking answers. We collected entry fees and artists donate
back a portion of sales (not mandatory) which all goes into
the NMWS general fund. The exhibition committee works off
a set line item amount each year. We pay for awards, rental,
printing, mailing, food, etc. out of that alloted amount. The
major purpose of a watercolor society is having exhibits,
workshops, and education for our members and the public.

                                        Wearing Another Hat, Woody

Woody, Retired in Albuquerque

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Ordering Address: PO Box 91703
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“The function of the overwhelming majority of your artwork
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of your artwork that soars.” from: “Art & Fear”

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