Credit Counseling Legislation - Requirements for 501(c)(3) Organizations |
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Are there other requirements for section 501(c)(3) organizations?
There are two additional requirements for a section 501(c)(3) organization:
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Contributions: Cannot solicit contributions from consumers during initial counseling process, or while consumer is receiving services from organization;
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Revenue from debt management plan ("DMP") services: The amount of revenue an organization may receive from its customers’ creditors which is attributable to DMP services is limited:
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For new organizations, such revenue cannot exceed 50 percent of total revenues.
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For existing organizations, such revenue cannot exceed the following limits (for those taxpayers on a calendar year accounting period):
a. 80 percent -- effective January 1, 2008
b 70 percent -- effective January 1, 2009
c. 60 percent -- effective January 1, 2010
d. 50 percent -- effective January 1, 2011
[Note: For taxpayers on a fiscal year accounting period, the transitional rules apply to the first taxable year beginning one year after August 17, 2006.]
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Page Last Reviewed or Updated: January 30, 2012
