Need Help with 501C3 and Allianz Endorsed Group Discount.

[troyt73]

I meet with a cemetery association that has 91 members at their annual meeting.

I suggested that they apply for endorsed group status so their members can receive an additional 5% discount on LTCI.

I found out that the association has been in existence since 1992 and “thought” they were a 501c3 non-profit. They recently discovered not all the paper work was done, and they are hurrying to finish it up now and retro-date it.

They like the idea, but here is the rub. Anyone can become a member of the association. There is no fee, nor requirements.

Will applying for endorsed group status thru Allianz have any bearing on the 501c3 status, since it will be a direct benefit to become a member?

Any takers on helping me tear this one apart, knowing that it is not sound legal advice. The 501c3 attorney said it might, and he will have to look into it, I would like some other agents experience with this. Some attorney’s will just say it is not possible instead of doing the research.

 

[Charpress]

The first question might be directed at why the want to be a 501c3 organization in the first place. Was this advice from a CPA? Would they even qualify?

Do they receive donations of any significant amount and/or do they have money-raising events?

Is the cemetery associated with a church? Does the cemetery itself have any historical significance? I wouldn't just assume they would qualify.

My limited experience with Allianz and their 5% deduction was that it would apply to just about any organization. They would not accept an organization of 20 members, however. The only way to find out is to ask.

Hey, you could even get a 5% discount if they also buy an annuity.

Anyway, if you haven't already, read this carefully and the links to other sections about related organizations.

Publication 557 (06/2008), Tax-Exempt Status for Your Organization

 

[troyt73]

The association needs to be a 501c3 for donation reasons.

I was unaware of the size limit on Allianz for their endorsed groups. That may change things too. I am surprised at the less than 20 limit. I can’t find that in the documentation anywhere, and a strong organization most likely will have more than 20 members.

Thanks for your reply, and other thoughts on this.

 

[Charpress]

I don't think it was a firm limit on the part of Allianz. They may have had other reasons to turn us down. I suspect it was the size, however.

 

[troyt73]

I spoke with Allianz this today and they said there is no limit on size. So at least another question is taken care of, but that is about all they could do to help.