The term "not-for-profit," "non-profit" and "charitable organization" are often interchanged and assumed to mean the same thing, but they are not.
"Not-for-profit" and "non-profit" mean that the organization does not intend to return dividends or profits to board members, owners or individual.
To open an bank account, organizations must register with the DCCA as a not-for-profit entity and file an updates every year. This is to protect consumers from fraudulent or deceptive activities by businesses or organizations.
To see if an organization is registered, in good standing with the DCCA or has any actions against it, click here.
Being registered as a not-for-profit with DCCA does not mean an organization is exempt from paying state or federal taxes or allows donors to write gifts off as charitable contributions.
To be exempt from paying income tax on donations, an organization must apply to the IRS as a tax-exempt organization. Based on the organization's activities and revenue sources, it can be assigned any number of classifications. See The Chart Of Other Classifications >>
A Group For Every Purpose...
The LGBT community's needs are great and fall into numerous arenas.
We need public education. We need advocacy and the ability to lobby our public officials. We need a focused platform from which to assist the progressive candidates at election time.
To properly empower our community, three distinctly separate organizations are needed, thus the need for Equality Hawaii, Equality Hawaii Foundation and Equality Hawaii Action Fund.
As required by the IRS, each organization has its own board of directors, bank accounts, marketing materials and organizational by-laws. Board meetings are separate events.
Also per IRS guidelines, no Equality Hawaii Foundation funds can be utilized or transferred to Equality Hawaii or Equality Hawaii Action Fund nor can the boards of the 501(c)(4) or PAC influence Equality Hawaii Foundation.
The 501(c)(3)...
Only the 501(c)(3) designation allows donors to write off gifts as a charitable contribution. This designation is the typical assumption when someone says "charitable organization."
A (501)(c)(3) organization, however, can only engage in specific activities. It cannot be an action organization that influences legislation as a substantial part of its activities or participate in any campaign activity for or against a political candidate. Learn More >>
As long as it operates within IRS codes, donors can be awarded tax deductions and the organization does not have to pay income tax.
Equality Hawaii Foundation is such an organization.
The 501(c)(4)...
A (501)(c)(4) organization, however, is a not-for-profit organized and operated exclusively to promote social welfare.
As seeking legislation is germane to the organization's programs, 501(c)(4) entities can advocate and "take action" on legislation and lobby.
Organizations with this IRS designation are exempt from federal income tax, but donors cannot write gifts off as charitable contributions. Learn More >>
Equality Hawaii is such an organization.
The 527 (PAC)...
Groups created primarily to influence the selection, nomination, election or defeat of candidates to federal, state or local public office are classified as 527 organizations ... commonly called PACs or political action committees.
Contrary to popular belief, 527s are tax-exempt organizations, but cannot offer tax-deductibility to donors and have a more detailed filing procedure to the IRS and - usually - state or county election officials.
Equality Hawaii Action Fund is such an organization.
Our Mission, Vision & Purpose