Legal Terms & Statements
Organizational Statement
SUpsilon, i.e., SUpsilon Foundation (legally The SUpsilon Nonprivate Foundation), is a 501(c)(3) nonprofit organization. The organization may also be referred to in Chinese as both "SUpsilon非私人基金会" (Simplified Chinese) and "SUpsilon非私人基金會" (Traditional Chinese). It is automatically recognized as tax-exempt under section 501(c)(3) and is not required to apply for recognition of exemption with the IRS. SUpsilon reserves the right to exercise supervisory authority over all managed sites. As the fundraising and financial management entity for the wikis under its supervision, SUpsilon accepts donations on their behalf and allocates funds to support their operations. However, SUpsilon serves only as a fiscal sponsor and assumes no responsibility for the daily operations, editorial content, or management of these wikis, as each operates independently. As a 501(c)(3) nonprivate foundation automatically recognized by law, SUpsilon is exempt from federal income tax without the need to apply for IRS determination.
Legal Basis
Based on Section 501(c)(3) of Title 26 of the United States Code, organizations organized and operated for charitable, scientific, literary, or educational purposes, the net earnings of which do not inure to the benefit of any private shareholder or individual, are exempt from federal income tax. Section 508(a) requires organizations formed after October 9, 1969, to notify the Commissioner of Internal Revenue and apply for recognition of their tax-exempt status; those failing to file a notice that they are not private foundations are presumed to be private foundations under Section 508(b).
However, Section 508(c)(1)(B) provides that the above filing obligations shall not apply to any organization that is not a private foundation (as defined in Section 509(a)) and that normally has gross receipts of not more than $5,000 in each taxable year.
SUpsilon Foundation is a nonprofit organization established under Section 501(c)(3), and its organizational purposes and operational model meet the definition of a non-private foundation (public charity) under Section 509(a), with income not inuring to any private shareholder or individual. Regarding the gross receipts standard, the Internal Revenue Service has established the following criteria: for the first taxable year, gross receipts do not exceed $7,500; for the first two taxable years, aggregate gross receipts do not exceed $12,000; for organizations that have been in existence for at least three years, the total for the immediately preceding two years plus the current year does not exceed $15,000. Gross receipts means the total amounts received by the organization from all sources during its annual accounting period, without deduction of any costs or expenses. SUpsilon Foundation's actual financial data for each taxable year comply with the above statutory limits.
Accordingly, SUpsilon Foundation has simultaneously satisfied the two statutory requirements set forth in Section 508(c)(1)(B), and that provision automatically applies – SUpsilon Foundation is not required to submit Form 1023 or Form 1023-EZ to the Internal Revenue Service for recognition of exemption, nor is it required to file a non-private foundation notice, and it automatically enjoys federal income tax exemption under Section 501(c)(3).
Disclaimer: This page is for informational purposes only and does not constitute legal advice. For a complete understanding of SUpsilon Foundation's tax status or legal obligations, please consult a qualified tax professional or legal advisor.