Hacker News Reader

Comment by margalabargala | Hacker News Reader

I did some digging in a reply to a sibling comment.

Basically, they are not a 501c3. They are a Michigan state specific nonprofit. My original comment was made after a 501c3 search turned up nothing.

I don't know why they would decline to be a 501c3 and instead only be a Michigan nonprofit.

View on HN

The 501c3 tax exception is specifically for charitable organizations, and the law and IRS interpretations exclude a number of groups that would colloquially fall under that description. On top of that there are many groups who aren't doing charitable work, but want to reinvest all revenue back into the organization and not be beholden to shareholders (private or public).

That's not true. Charitable organizations are just one of many groups that qualify as a 501c3.

Groups dedicated to scientific, literary or educational purposes also quality.

The reason this is a problem is that Rebble is using their being a "non-profit" as a point of advertisement but there is essentially no difference between someone owning a for-profit company, and someone controlling and heading a non-profit company where they set their own salary and are not a 501c3.

Huh that seems very odd. And it's strange (and possibly misleading) to say you are a "non-profit" under these circumstances.

Any chance they recently changed status, and it's just not showing up yet?

> Any chance they recently changed status, and it's just not showing up yet?

The Rebble Foundation incorporated in 2023, so I don't think so.

I agree it's strange. The advantages of being a 501c3 in the US are immense, and if you meet the criteria, it is not difficult to become one. Essentially every organization larger than 6 people in the US that could be a 501c3, is one, for this reason.

So if they aren't, I assume it's because they can't be. Which makes me wonder why.

Just FYI. 501(c)(3) is not the only federal nonprofit designation.

I have dealt with 501(c)(7) (basically a club), and I suspect there are others.

There are a lot, but most of them are extremely narrowly defined. There are not many into which Rebble could fit.

https://en.wikipedia.org/wiki/501(c)_organization#Types

Rust Foundation is pretty reputable and is a 501c6 and they say they're a non profit

Sure, Rust Foundation fits the criteria of a 501c6. It is not itself a commercial enterprise, but is an advocacy body for the Rust language and its users.

Rebble is not that. One of the key defining features of a 501c6 is that it exists to support other businesses that are associated, like a Chamber of Commerce. If Rebble did this then this whole issue we're commenting on the thread for wouldn't be an issue.

Also well funded. They would struggle to raise as much in terms of contributions IMO if not providing tax relief status to their contributors.

Reply on news.ycombinator.com