Why are volunteers / executive trainees asked to advance their own personal funds to the operation of the 501(c)(3) scientific, educational and charitable organization?
For starters, it’s federal law.
See 676 F. 2d 35 — Rockefeller McG v. Commissioner of Internal Revenue which states in paragraph 17, “Cabell v. Markham, 148 F.2d 737, 739 (2d Cir. 1945). Our interpretation of the statute in question promotes the public purpose of encouraging, through tax deductions, significant support of charities by taxpayers of substantial means who advance their own funds for the operation of charitable organizations.”
Have you read IRS Rev. Rul. 74–361, 1974–2 C.B. 159?
Maybe these are not good enough legal reasons for you?
Well, here’s another one.
The overarching standard followed by the executive leadership to maintain the IRS determination of WHOmentorsdotcom Inc. as a 501(c)(3) exempt organization is based on “the United States Supreme Court rationale in Better Business Bureau Of Washington, D. C., Inc. v. United States, 326 U.S. 279 (1945), [which] indicates the presence of private benefit, if substantial in nature, will destroy the [501(c)(3)] exemption of WHOmentorsdotcom Inc. regardless of its other charitable purposes or activities.”
It must be understood WHOmentorsdotcom Inc. is a nonprofit public benefit corporation and the 501(c)(3) exemption recognized by the Internal Revenue Service (IRS) is conditioned on the principle an individual is not entitled to unjustly enrich himself/herself at the organization’s expense.
Maybe you are “one in a million,” and your “time is worth money.” A lot of it! Unfortunately, in the eyes of the law, the value of your time or services is never deductible as a charitable contribution.
NOTE: Out-of-pocket expenses when you serve a qualified organization as a volunteer are deductible as a charitable contribution. See IRS Publication 526, “Charitable Contributions” or consult with a tax professional.
If you were required to defend yourself in the United States Tax Court, could you provide evidence that you are a volunteer? Elizabeth van Dusen did and won.
Volunteers must be properly classified or the employer will be exposed to liability.
In the 2018 Dynamex, Inc. case, the California Supreme Court ruled that companies must use a three-pronged test in determining whether to classify workers (volunteer) as employees or independent contractors (and by extension unpaid volunteers). This test assumes that workers (volunteers) are employees unless the company that supervises them can prove the following three things.
- The worker (volunteer) is free to perform services without the control or direction of the company.
- The worker (volunteer) is performing work tasks that are outside the usual course of the company’s business activities.
- The worker (volunteer) is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
The emphasis is on properly classifying your relationship to the entity.
Listen and watch a person describe his experience and the result of filling out long applications to volunteer with credible humanitarian (traditional) organizations (Logos show identities associated with the following NTEE/IRS Activity Codes: Q30, Q33, Q33, Q42, Q33, Q30, and Q20):
https://www.youtube.com/embed/bdBG5VO01e0?start=213&end=275&version=3
(NOTE: Descriptive/nominative use of the embedded video from 3:27 to 4:35 does not imply an endorsement, sponsorship or approval of WHOMENTORSDOTCOM INC., a nonprofit research organization (NTEE/IRS Activity Code U40, NAICS 5417). Use of the copyrighted material is only for educating the public on properly defining a volunteer’s relationship to a 501(c)(3) entity.)
Narrator: One organization (NTEE/IRS Activity Code: Q33, NAICS Code 81311) says, “If you pay us $500 a month, you can volunteer with us.” I say, “I’m gonna sign up (pay with credit card details) and be your volunteer photojournalist.”
This is NTEE / IRS Activity Code A31 - Film & Video: “Organizations that produce films, videos and holographic images for a variety of educational, documentary and cultural purposes, and/or promote public appreciation of film and video.”
http://connectbrevard.org/PubApps/nteeSearch.php?returnElement=&popup=0&code=A31&codeType=NTEE
We’re not strict about the fee. There are flexible options.
If you cannot afford to pay the annual $250 registration fee on your own, you’re encouraged to conduct outreach to your communities and ask someone else to cover the amount. Your funding could come from your network of friends, family, and community,* especially those whose employment qualifies for employer gifts for time or money. *(This language appears on Indiegogo, Kickstarter, and GoFundMe campaigns).
You could be a human billboard. Ask others to “PAYPAL.ME ANYAMOUNT”
Or, you could ask the world to “VENMO ME ANYAMOUNT”
You could ask others to sign in to the PayPal mobile app and donate to WHOmentorsdotcom Inc. Or, you could download the PayPal Here mobile app and sign in with the username: volunteernow and the password: volunteernow! to collect a donation.
Whatever your humanitarian, civic, or educational reasons are for volunteering, you can “do what you like to do.” After the payment is remitted http://support.whomentors.com, you’ll sign a confidentiality agreement and Collections Agreement Form.
Then choose from over 680 activity codes: http://activitycodes.whomentors.com to accomplish the 501(c)(3) purposes of WHOmentorsdotcom Inc., specifically scientific, educational, and charitable.
This isn’t a sales pitch or a high pressure situation. When you’re ready, schedule a meeting at the office (99 South Almaden Boulevard, Suite 600, San Jose, California 95113) or call 415–373–6767 to discuss things like IRS Tips to Keep in Mind for Taxpayers Traveling for Charity https://www.irs.gov/newsroom/tips-to-keep-in-mind-for-taxpayers-traveling-for-charity
The law is clear, “In determining whether a taxpayer has provided services to a particular organization, courts consider the strength of the taxpayer’s affiliation with the organization, the organization’s ability to initiate or request services from the taxpayer, the organization’s supervision over the taxpayer’s work, and the taxpayer’s accountability to the organization. See, e.g., Smith v. Commissioner, 60 T.C. 988 (1973); Saltzman v. Commissioner, 54 T.C. 722 (1970).”
And, what will be your title to put on your résumé or Linkedin profile? Volunteer is a labor status, not an occupation. Individuals are asked to identify themselves as an “Executive Trainee” as defined by 29 CFR 541.705.
Examples:
I encourage you to contact Angelica. She will be very enthusiastic about connecting with you!
To succeed in anything, start by setting some boundaries for your finances. If you cannot afford an annual fee of $250 or you have no one to ask to support you financially, you may want to consider another organization that aligns better with your situation.
