Frequently Asked Questions

What is Seward County Bridges, Inc.?

Seward County Bridges, Inc. is a Nebraska nonprofit corporation formed in 1998 pursuant to the Nebraska Nonprofit Corporations Act. It is defined as a public benefit corporation (not a mutual benefit corporation or a religious corporation), meaning it is inteded to be operated for the benefit of the general public.

How is Seward County Bridges, Inc. governed?

Under Nebraska law, a nonprofit corporation may be set up with or without members. Bridges is a membership organization, meaning that individuals with an interest in the organization may become membes entitled to attend the annual meeting and receive regular information about the organization. The organization is governed by a Board of Directors.

Is Seward County Bridges, Inc. a tax-exempt organization?

Yes. Bridges has been recognized by the Internal Revenue Service as a tax-exempt charitable organization under Section 501(c)(3) of the Internal Revenue Code. This means that Bridges generally does not pay federal or state income tax on the income, grants or donations it receives. In addition, it means that Brdiges is eligible to accept tax-deductible donations. Persons or entities contributing cash or property to Bridges can generally deduct the amount of the gift on their income tax return. Status as a 501(c)(3) organization also makes Bridges eligible for various grant programs which are limited to charitable organizations.

How is Seward County Bridges, Inc. different from other community organizations?

As noted above, Bridges is tax exempt under section 501(c)(3) of the Internal Revenue Code. This status is reserved for organizations with purely charitable, religious, or educational purposes (such as churches, universities, hospitals, and public charities like the American Red Cross). Other local organizations generally do not have this status. Country clubs and homeowners' associations can qualify to be exempt from income tax, but are not eligible to accept tax deductible contributions. Likewise, business, trade, and professional organizations and service clubs are usually exempt from tax, but donors cannot claim a chairtable deduction for contributions or dues. That is why professional organizations that want to promote charitable causes generally establish a separate charitable foundation that has 501(c)(3) status.

What restrictions and reporting requirements apply to Seward County Bridges, Inc.?

Charitable organizations with tax exempt status under section 501(c)(3) are subject to reporting requirements and some rather complex restrictions on their operations. These requirements and restrictions are briefly summarized as follows:

• Reporting: A charitable organization with annual receipts over $25,000 must file an annual information return with the IRS on Form 990. The form 990 and original application for tax exempt status must be generally available upon request for inspection by the public. A Nebraska nonprofit corporation must also file a biennial report with the Nebraska Secretary of State.
• Exempt Purpose: The operations of the organization must all relate to the fulfillment of the organization's "tax exempt purpose". This means that the organization can only do things that advance its charitable or educational purposes. In the case of Bridges, this means that Bridges can only participate in projects that have some underlying charitable or educational purpose that is consistent with its stated purposes. The state purposes of the organization are to solicit, obtain, and provide resources, financial support, information and services to and/or for the benefit of the residents of Seward County, Nebraska in the following areas: Education, Health/Mental Health, Family/Family Services, City and County Government and Economic Development. Bridges can fulfill these purposes by passing funds on to other 501(c)(3) organizations or to local government entities or by activiely conducting its own charitable or educational activities. Bridges cannot participate in projects which result in direct monetary gain or benefit to the members or directors of Bridges or which primarily benefit private groups or clubs.
• Prohibited Activities: Generally, a 501(c)(3) organization cannot participate in lobbying, campaigning or other political activities. A 501(c)(3) organization cannot issue stock or pay dividents to members.

What if Seward County Bridges, Inc. fails to comply with the 501(c)(3) requirements?

A charitable organization that fails to comply with the requirements is subject to IRS sanctions and can lose its tax exempt status. This would result in adverse tax consequences to the organization and to donors (who could lose their tax deduction).

What charitable deduction is available for gifts or bequests to Seward County Bridges, Inc.?

A charitable deduction against federal income taxes is available for lifetime gifts to a public charity like Bridges. The charitable deduction is subject to the general limitations which apply to itemized deductions. In addition, the deduction may not exceed 50% (30% for certain gifts of property) of the taxpayer's adjusted gross income.