SpiritDAO is now a 501c3 Church
After over seven months of waiting and a significant amount of back and forth with the IRS, SpiritDAO has been formally granted our 501c3 Church Status!
This is a huge milestone for SpiritDAO, and social impact DAOs in general, as it provides us a context and framework to expand and scale our efforts that were previously unavailable to us.
Members can see the full application process within our shared documents drive, but the short of it is that member Ron Rivers will serve as the Executive Director SpiritDAO. As per our bylaws, this title is primarily a figurehead, as Ron is bound to the whims of the DAO as outlined in our charter. Ron presently sits on the Executive Pod and has been a driver in furthering much of the operational/legal infrastructure for SpiritDAO.
What does this mean for members?
Being a 501c3 church provides significant benefits for the DAO members, the DAO as an organization, and the various pods that serve to further our shared vision and mission. Below is breakdown of some of the legal benefits:
Section 2055 – Estate Tax Deductions for Charitable Bequests
This section allows estates to take a deduction for bequests, legacies, or transfers made to qualified charitable organizations, including churches.
If someone includes SpiritDAO in their will, the value of the donation can be deducted from the gross estate for estate tax purposes, reducing the overall taxable amount.
As a 501(c)(3) church, any bequests to SpiritDAO would qualify for this deduction, encouraging members or donors to consider leaving a legacy through planned giving.
Section 2106 – Credits Against Estate Tax for Nonresidents
This section deals with estate tax for nonresidents who are not U.S. citizens. It provides certain credits and deductions for charitable donations.
Relevant if a nonresident (who isn't a U.S. citizen) includes SpiritDAO in their estate plan. The estate may still receive favorable tax treatment by including a charitable deduction for gifts to SpiritDAO.
It ensures that even international donors or those with complex estate situations can benefit from charitable giving.
Section 2522 – Gift Tax Deductions for Charitable Contributions
This section allows donors to take a deduction for gifts made to qualified charities (including churches) when calculating gift taxes. (Donations to SpiritDAO are now write-offs - up to 60% of adjusted gross income)
If SpiritDAO receives large donations or gifts during a donor's lifetime, they can claim a deduction to reduce any gift tax liability they might owe.
As a 501(c)(3) organization, any gifts made to SpiritDAO would qualify for this deduction, encouraging donors to contribute without incurring additional tax burdens.
How will this impact SpiritDAO's efforts?
Being a formally recognized 501c3 has many benefits. The most impactful is the ability to fundraise and receive grant funding from a wide range of grant making organizations (that typically require a 501c3 status).
In short, it opens up pathways to funding that were previously unavailable. Funding that would directly benefit the SpiritDAO community and its various pods.
If this news excites you, there has never been a better time to get involved. Now is the time for visionaries who are willing to roll up their sleeves and get to work.
We're so excited for what's to come.
Happenings
We're now a 501c3 Church!
Thank you for reading!
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