About Us
Seward County Bridges Mission Statement: Bridges Works to enhance the quality of life for all people in Seward County through empowerment and engagement within the county and community by networking, connecting and coordinating.
Seward County Bridges, Inc. Frequently asked questions: Legal and tax issues
What is Seward County Bridges, Inc.?
Seward County Bridges, Inc. is a Nebraska nonprofit corporation formed in 1998 pursuant to the Nebraska Nonprofit Corporations Act. It is defined as a public benefit corporation (not a mutual benefit corporation or a religious corporation), meaning it is intended to be operated for the benefit of the general public.
How is Seward County Bridges, Inc. governed?
The organization is governed by a board of directors. Each director serves for a three-year term with new directors elected on an annual basis by the remaining members of the board. The board of directors makes major decisions on behalf of the organization and elects officers. The officers manage the day-to-day operations of the organization with the assistance of employed staff. All the governance procedures are set forth in the bylaws of the organization.
Is Seward County Bridges , Inc. a tax-exempt organization?
Yes. Bridges has been recognized by the Internal Revenue Service as a tax-exempt charitable organization under Section 501(c) (3) of the Internal Revenue Code. This means that Bridges generally does not pay federal or state income tax on the income, grants or donations it receives. In addition, it means that Bridges is eligible to accept tax-deductible donations. Persons or entities contributing cash or property to Bridges can generally deduct the amount of the gift on their income tax return. Status as a 501(c) (3) organization also makes Bridges eligible for various grant programs which are limited to charitable organizations.
How is Seward County Bridges, Inc . different from other community organizations?
As noted above, Bridges is tax exempt under section 501 (C) (3) of the Internal Revenue Code . This status is reserved for organizations with purely charitable, relig i ous or educational purposes (such as churches, universities, hospitals and public charities like the American Red Cross). Other local organizations generally do not have this status . Country clubs and homeowners' associations can qualify to be exempt from income tax, but are not eligible to accept tax deductible contributions. Likewise, business, trade organization, professional organizations and service clubs are usually exempt from tax, but donors cannot claim a charitable deduction for contributions or dues. That is why professional organizations that want to p r omote charitable causes generally establish a separate charitable foundation that has 501(C) (3) status.
What restrictions and reporting requirements apply to Seward County Bridges, Inc. ?
Charitable organizations with tax exempt status are subject to reporting requirements and some rather complex restrictions on their operations . These requirements and restrictions are briefly summarized as follows:
Reporting: A charitable organization with annual receipts over $25,000 must file an annual information return with the IRS on Form 990. The Form 990 and original application for tax exempt status must be generally available upon request for inspection by the public. A Nebraska nonprofit corporation must also file a biennial report with the Nebraska Secretary of State .
Exempt purpose: The operations of the organization must all relate to the fulfillment of the organization's "tax exempt purpose." This means that the organization can only do things that advance its charitable or educational purposes. In the case of Bridges, this means that Bridges can only participate i n projects that have some underlying charitable or educational purpose that is consistent with its stated purposes. The stated purposes of the organization is to solicit, obtain, and provide resources, financial support, information and services to and/or for the benefit of the residents of Seward County, Nebraska in the following areas: Education, Health and Mental Health, Family and Family Services, City and County Government and Economic Development. Bridges can fulfill these purposes by passing funds on to other 501 C (3) organizations or to local government entities or by actively conducting its own charitable or educational activities. Bridges cannot participate in projects which result in direct monetary gain or benefit to the directors of Bridges or which primarily benefit private groups or clubs.
Prohibited activities: Generally, a 501C (3) organization cannot participate in lobbying, campaigning or other political activities. A 501 c (3) organization cannot issue stock or pay dividends to members.
What if Seward County Bridges, Inc. fails to comply with the 501(c)(3) requirements ?
A charitable organization that fails to comply with the requirements is subject to IRS sanctions and can lose its tax exempt status. This would result in adverse tax consequences to the organization and to donors (who could lose their tax deduction) .
7 . What charitable deduction is available for gifts or bequests to Seward County Bridge, Inc.?
A charitable deduction against federal income taxes is available for lifetime gifts to a publiccharity like Bridges. The charitable deduction is subject to the general limitations which apply to itemized deductions . In addition, the deduction may not exceed 50 percent (30 percent for certain gifts of property) of the taxpayer's adjusted gross income.