[Foundation-l] Mission & Vision statement updated

[Anthony]

On 4/26/07, Thomas Dalton <thomas.dalton at gmail.com> wrote:
> > > Just a quick point here: the Foundation may not change its mission  statement
> > > without an official determination letter from the IRS.
> >
> > Can you please provide us with the law or regulation which says this?
> > Can you also let us know the methods by which one can obtain such a
> > determination letter?  Are you saying an entirely new Form 1023 has to
> > be submitted?
>
> I don't know the details, but it is common sense that such a law
> exists. I can't found a charity to help cure cancer, get lots of
> donations, and then change the charity to one that provides caviare to
> aristocrats.

No, you obviously can't change a charity into a non-charity without
getting into trouble with the IRS.  But that doesn't mean that you
need IRS approval to make any change to your mission statement.

> Once you start accepting public donations, you have to
> spend those donations on what you said you would spend them on.
>
I'm sure this is a valid legal principle, but it has nothing to do
with the IRS.  I'm only an expert in tax law, so I don't really know
the specifics about this principle.

> I don't know if the changes that have been made are significant enough
> to be a problem, but it is certainly something that requires talking
> to a lawyer.
>
I don't disagree with that.  But what Danny said was something very
specific which I frankly have never heard of.  He said that "the
Foundation may not change its mission statement without an official
determination letter from the IRS".  This may very well be true, but
if so I think it would benefit us if he provided more details on it.
OTOH, if it's just something he made up or thought he heard from
somewhere or something he assumes must be true based on "common
sense", I think we should know that as well.

Anthony