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Non-Profit Beneficial Owner

New Community Member

Non-Profit Beneficial Owner

In trying to respond to the requirement to identify Beneficial Owners, you are required to enter a % between 25 and 100% for a person being identified.  

 

A IRS 501 (c) (3) Non-Profit does not have owners.  If you interpret the requirement as "or a person who has a controlling influence in your business.", then you must enter ownership between 25 and 100%.

 

How does a non-profit respond to this requirement?

3 REPLIES 3
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Moderator

Re: Non-Profit Beneficial Owner

Hello @pchisam,

 

Thank you for reaching out on our Community Forum for assistance. That's a great question! The following entities may be asked to provide information on the Beneficial Owners:

  • Business Trusts
  • Charities (except for Government-owned)
  • Corporations
  • Limited Liability Companies (LLC)
  • Partnerships
  • All other types created by filing of public document with Secretary of State

Legal entities will normally have between 1 - 5 Beneficial Owners. While this is not an exclusive list, examples of Beneficial Owners may be the following:

  • Chief Executive Officer
  • Chief Financial Officer
  • Chief Operating Officer
  • President
  • Vice President
  • Treasurer
  • General Partner
  • Managing Member
  • Any other individual who regularly performs similar functions as those listed above that may have an equity interest of 25% or more of the legal entity.

I hope that clarifies a few things. Here's a great Help Center article that may be able to assist a bit further as well: What is a beneficial owner and why do I need to provide this information?

 

Have a great day!

 

 - Jon K

 


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New Community Member

Re: Non-Profit Beneficial Owner

This answer does not address the issue! A 501(c)3 non profit corporation DOES NOT HAVE A BENEFICIAL OWNER . Period. End of story. Asking us to provide beneficial ownership information is dishonest at best, and breaking the law at worst.  If we provide "beneficial owner" information even though no one in our organization holds any percentage of ownership, we would be lying! Pretty sure that would be considered perjury.  If our organization were to disband, the proceeds would not go to any of our board members; any funds remaining would be divided among the charitable organizations that we support.

Highlighted
Moderator

Re: Non-Profit Beneficial Owner

Hi @gospelmi,

 

Thanks for posting here and I am sorry for the confusion. 

You are correct in saying that a charity does not have a beneficial owner and we do account for that. Instead of beneficial owner you can enter a senior management officer, so the person who is in charge and will be responsible for the account. You would then mark this person's ownership share as 0%.

 

I hope this helps. 

Rachael