Hello everyone,
It is that time of year when folks are doing their taxes and really thinking about money. As a non-profit we are always thinking about money. I wanted to address two things regarding Back Alley Bikes in this regard: online donations and our 501(c)(3) status.
Online Donations
First off – thank you to everyone that has donated to us online! In the first two months of 2014 alone we’ve raised over $5,000 online. This is a big deal this time of year being that the polar vortex doesn’t only stop people from biking, it freezing our lines of funding as well. Being open year round isn’t easy, but it is something we are committed to doing and your donations have helped so much! So thank you again!
We had an online provider called WePay help us process online donations with credit cards. You might notice that we no longer have the green “DONATE” button on the right side of our website anymore. This is because, sadly, WePay has shut down some of their services including their ‘buttons.’
So what do we do? We need to find another provider and the search has begun. We have found a few that would fit our needs, but a big barrier is our 501(c)(3) status which I will address next.
Again, we do appreciate your donations and without them we wouldn’t have survived this winter (as we continue to survive this winter). So please keep an eye on our website for when we have a donation service replacement. If you know of any good ones, please send us suggestions! And in the meantime, if you would like to make a monetary donation to Back Alley Bikes, please contact us at 313.879.5630 to make arrangements.
501(c)(3) Status
For those of you that do not know, a 501(c)(3) status is a federal designation for non-profits in the United States of America. Basically it is the federal government’s stamp of approval saying that an organization is behaving as a non-profit should in accordance with their laws. It becomes important when applying for grants and also for folks that make donations to us.
We don’t have that designation…yet.
In March of 2013 we sent in our application. Later that month we received a letter informing us that the IRS received our application. Some time after that we received another letter informing us that our application would be placed under special review…
And that is where we have sat for the past year. When under special review there is an added 9-12 months wait time to a response. With the government shut down that happened last year our wait time is most likely going to be longer. In other words we could hear back any time between today and this fall really.
So what this means for you…One of our donors, Dennis, looked up some information because he was wondering how he could possibly write off his donations. According to Dennis, donations can we written off to organizations with a 501(c)(3) decision pending. However, you may have to file an amended return if that organization’s application is denied. For more information, ask the IRS.
When we get our decision we will definitely let folks know. We are hoping for the best, so keep your fingers crossed for us. And if you work for the IRS…
**Edit: We’ve added a Paypal donation button to our website in the interim. Thanks for your support.