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Operating a thrift store to raise funds will not jeopardize an organization's exempt status.
Nonprofit and Church Legal Trends - Free Edition - March April 2007 (free edition)
A 501(c)(3) organization was formed to raise funds and collect clothing, medicine, and household goods to send to another country. However, when the original application was filed with the IRS, they did not intend to operate a thrift store. But they have recently determined that opening and operating a thrift store would be a good addition to their mission. They are now requesting a ruling from the IRS that operating a thrift store will not jeopardize their exempt status. The IRS concluded that the thrift store activities do further the exempt purposes of the organization and are not an unrelated trade or business.
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