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    ninian7840 Posts: 1, Reputation: 1
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    Jun 16, 2014, 01:06 AM
    501c3 Rules and Regulations
    May a 501c3 provide funds to establish a 501c6? What is the form number for the IRS rule? Thanks.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    Jun 16, 2014, 11:43 AM
    The funds of the 501(c)(3) should be used exclusively for the advancement of its mission as defined in the filing made with the IRS when it was granted 501(c)(3) status. Since a 501(c)(6) is a business league and is not charitable, educational, scientific, religous, etc - it's hard to see how funding the start up of a 501(c)(6) supports the stated mission, although I suppose it may be possible. What is the nature of the 501(c)(3), and why are they considering doing this?

    For reference yuo may want to read IRS Pub 557. Chapter 3 covers 501(c)(3)'s and is located here: Publication 557 (10/2013), Tax-Exempt Status for Your Organization
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