<div dir="ltr"><div><div>Carrie:<br><br>That's exactly how it works, and the only way it works. Remember that the US is a federal system with two pertinent tiers of laws -- state and federal. <br><br>Organizations are created under state law, not under federal law (with extremely rare exceptions). Federal tax exemption is handled (by definition) at the federal level. A not-for-profit organization must first incorporate under state law, and then proceed to seek a federal tax exemption as a non-profit under 501(c)(3) (or other relevant subsections for particular types of organizations). <br><br>In other words, an organization cannot apply for federal tax exemption under 501(c)(3) <i>until</i> it has incorporated as a non-profit under the law of a state of the U.S. [While there are organizations other than corporations that may qualify for federal tax exemptions, such as trusts and "community chests," they are not relevant to this discussion.]<br><br></div>Hope this helps.<br><br></div>Greg Shatan<br><div><div><br><br><br></div></div></div><div class="gmail_extra"><br><div class="gmail_quote">On Thu, Jan 8, 2015 at 8:02 AM, Carrie <span dir="ltr"><<a href="mailto:carriedev@gmail.com" target="_blank">carriedev@gmail.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">Thank you Bruce. But according to Ed 's California corporation registration number they have registered already as a ca corp. please explain how this occurs being a corp on CA at the same time registered as a non profit w the IRS ?<br>
<br>
Sent from my iPhone<br>
<div class="HOEnZb"><div class="h5"><br>
> On Jan 8, 2015, at 7:57 AM, Bruce Tonkin <<a href="mailto:Bruce.Tonkin@melbourneit.com.au">Bruce.Tonkin@melbourneit.com.au</a>> wrote:<br>
><br>
> Hello Edward,<br>
><br>
>>> I'm unaware of any current plan to shift ICANN status from non-profit to profit, although some have called for such a change (see, for example: <a href="http://thehill.com/blogs/congress-blog/technology/227726-icanns-number-is-up" target="_blank">http://thehill.com/blogs/congress-blog/technology/227726-icanns-number-is-up</a> ).<br>
><br>
> That is right - there is no plan from either the Board or staff to change from being a non-profit entity, and I haven't heard any SO or AC make that suggestion either.<br>
><br>
><br>
> Regards,<br>
> Bruce Tonkin<br>
><br>
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