The News Makes News

October 17, 2012 Posted by The Law Firm for Non-Profits, P.C. in IRS, News

Several years ago, the Law Firm for Non-Profits obtained exemption for an online investigative newspaper. Despite this exemption, a print newspaper was still unsure as to whether the IRS would recognize it as exempt under section 501(c)(3).

After 2 ½ years, the IRS has answered this question in the affirmative. Last month the IRS issued a determination for the San Francisco Public Press.

The exemption review process normally takes six months (though currently is taking almost a year). So why did it take 2 ½ years to review the San Francisco Public Press application? For centuries, newspapers have operated under a for-profit business model. But as the Internet has changed all media, it has become increasingly difficult for newspapers to make money. The Public Press is one of a growing number of newspapers that now seek to re-envision the newspaper as a nonprofit enterprise.

With the IRS agreeing that newspapers can operate as 501(c)(3) organizations, undoubtedly many will adopt this business model.

NOTE: The information contained herein is not intended to be legal advice and the reader should know that no Attorney-Client relationship or privilege is formed by the posting or reading of this article which is also not intended to solicit business.

Casey Summar, Partner, The Law Firm for Non-Profits,1812 W Burbank Blvd, #7445, Burbank, CA 91506

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