Maxwell ministry really a (secret) nonprofit?

[YPestis]

Ok, I know there's like a bunch of Maxwell threads running but I thought this little tid bit may require it's own thread:

 

titus2.com/donations.html

 

We are regularly asked about donations.

 

We are deeply grateful for those who do support us with their gifts, but Titus2 is not a 501-C3 entity. Therefore gifts given to us can not be deducted from your federal income tax. We have chosen not to go through the registration process to remain free of government constraints imposed on such organizations.

 

If you do choose to donate, checks may be mailed to: Titus2, 1504 Santa Fe St, Leavenworth, KS 66048

 

Now, I did a google on what a 501-C3 entity is, and it says it's a designation for nonprofit organizations.

 

I always thought the Maxwell "ministry" was also a business venture which supports the family, kind of like how other fundies sell goat soap or whatever. Steve has even written several articles about starting one's own business (NOT starting a nonprofit!), presumably because he treats titus2 as a business. Am I incorrect?

 

Does the Maxwell tell their followers that their ministry is really a non-for-profit but that they didn't want to get on the ebil government's radar? Steve has said titus2 ministry is his full-time job now and he's still supporting a family of 8. I doubt he's able to do it with savings and retirement pension alone, unless there's a stash of gold he isn't telling anyone about. As much as we snark about his "ministry", I thought it was clear that this was a business venture (and nothing wrong with that) rather than a straight nonprofit.

 

I suspect the family portrays the titus2 business as a "ministry", giving it a more churchy appeal, rather than what it really is: another company plying their ware. Their whole "we just don't want the ebil government to get us" is an excuse to treat it as a real business venture while giving it a charitable appeal. However, I'm not an expert on these things. Perhaps someone with more business knowledge can explain to me why the Maxwells feel turning their company into a nonprofit would constrain them?

[Patsy]

I'm confused. Have you maybe missed the word "not" above?

[Justme]

I'm a little confused, too. I have never seen them try to "mask" their business as a non-profit.

[SPHASH]

What about the sales from the Moody books, is that part of the ministry?

[sparkles]

I wouldn't doubt that some of their followers THINK it's a non-profit ministry, but Steve's always been pretty clear that it's not. True, you've got to read the fine print, but it's there. I don't think it matters to the faithful though. They'll keep on givin'.

Note that the website is a .com, not a .org (which usually, but doesn't have to, denote a non-profit).

[salex]

Per their articles of incorporation which can be found on the state site in Ks, the Nature of the Titus 2 corporation or business is to distribute materials, for sale, which pertain to Christians, families and businesses.

SO, this covers pretty much anything they sell. The BOD at the time of incorporation included Steve, Terr and Sarah. As stated in the OP, they are NOT a not for profit. They have a second company that is in good standing and predates this one that is set up "to engage in any lawful act of activity for which the entity may be organized under the laws of Kansas." Which can be used for any other businesses they have not included under the first.

I personally would not be suprised if he switches to LLCs, because i believe KS has made them much more tax friendly, but maybe not.

[Marian the Librarian]

FWIW, they are not listed on Guidestar.org, which is a pretty comprehensive and reliable database of nonprofit organizations.

[uber frau]

1. They're not listed anywhere in the public record as a not for profit.

2. I can understand the financial benefit of listing a business as a not-for-profit (Dougie-is a tool- and Geoff, I'm looking at you) but I don't understand why it would be advantageous to have the opposite apply. True, it might help their image among their punters but I'm pretty sure Steve is arrogant enough to not care what people think.

3. I'm pretty sure the only Tit2 is a not-for-profit is in the sense that it's a registered business that's not making any money. I can see that situation being the case.

[Dysfundamental]

This is just Stevehovah spinning. He wants donations, but he doesn't want to go to jail, so he says "we are not a 501 © 3," which is true. The gullible person might fill in "but they're a non-profit, they just don't want to jump through the Godless government hoops, must donate!" which could be exactly what Steve wants them to think. Or it could be his subpar communication skills, I suppose.

So he is getting rubes to donate to his business. But everything he has said is true and legal.

You can't be a "secret nonprofit". Non-profit organizations have very specific reporting requirements. Steve's business is a business, legally.

[Shoes Grace]

Steve could NEVER function as a not-for-profit. Those organisations must have a board of directors that oversee every aspect of the organisation, and Steve could not be a member of the board leadership, nor could any of his family, due to conflict of interest in their involvement with the day to day running of the company. There is not a single reason in the modern business climate for him to even want to apply for 501-C3.

And, if we assume the guy's a Flanders about his taxes, he's probably very clear about everything to anyone who attempts to donate.

[YPestis]

I'm confused. Have you maybe missed the word "not" above?

I am the OP and I apologize for the confusion. I do understand that the organization is a nonprofit.

I made a crack that perhaps their organization is a "secret" nonprofit as a joke. Poorly worded, I realize now....

When I read that they "choose not to go through the registration process" because of "government constraints", it implied that they would have become a nonprofit if not for the ebil government. In other words, Steve seems to believe the titus2 business functions as a nonprofit in all but government documents.

Anyway, I speculated that the reason Steve put this in is because his followers believe his "ministry" is a true ministry and/or a side business affiliated with a church like entity, but Steve doesn't want to admit it's just a business. Plus, he wants to still encourage donations. Kind of like getting the perks of both worlds (business and nonprofit).

I hope that clarified everything. I realized the thread title is misleading, implying I thought the titus2 business is a nonprofit. I do not. I was just surprised the Maxwells hinted their business was "like" a nonprofit, giving spin as to why it was not officially categorized as such.

Now, I wish I could edit the threat title....

[jlbturtle]

As a non profit auditor and tax preparer. I wanted to weigh in. Steve could apply for 501c status and he may even qualify as one due to his "mission". I will say there is A LOT involved with being a non profit that he may not want to get involved with. He also would probably never be a 501c3 as they have to receive the majority of their funding from public/grant/ or government donations. Also as someone said above, he would have to form a board of directors, they could be family members but you have to be a little careful with that. There are so many other things I could say about this but I wont.