Hello Michael,
I am befuddled as to what else we are being asked to comply with exactly? We faxed over to you our Organization and Payment Information in which you received on February 6, 2010, then on April 30 of 2010, we received an email from you informing us that our Paypal funds were eligible for withdrawal, which that came 180 days after opening an account. Then on June 12 of 2010, we come to find our account to be met with this message - This recipient is currently unable to receive money. So what we have is a misunderstanding on your knowledge of state and federal statute, in which there is no state or federal statute that requires a non-profit organization to be "incorporated", "tax-exempt" "subordinated" or "registered" in order to "prove" it's legitimacy. We are located in the State of Texas, in which not all non-profit organizations are filed with the Secretary of State nor are they required to incorporate.
Section 252.001 of the BOC defines an unincorporated nonprofit association as an unincorporated organization consisting of three or more members joined by mutual consent for a common, nonprofit purpose. All unincorporated nonprofit associations, whether or not the entities are tax exempt, are subject to the provisions of the Uniform Unincorporated Nonprofit Association Act, Chapter 252 of the BOC. (To be read: Not all non -profit organizations are tax exempt entities!)
Furthermore, the IRS has clearly stated:
Exceptions to Application Requirement
The following organizations are excepted from the 501(c)3 exemption application requirement:
Churches, their integrated auxiliaries, and conventions or associations of churches; and
An organization that is not a private foundation and the gross receipts of which in each taxable year are normally not more than $5,000.
As you can see, The Way of Truth Assembly is not a private foundation nor have our gross receipts for the current taxable year (yet) exceeded $5,000. We are not "chartered by" nor "subordinated to" any other existing charity or religious organization, nor do we collect donations on behalf of or in the interest of any third party charity or religious organization. The Way of Truth Assembly is independent from any membership body, organization, or educational facility. Independence from any paid membership organization is essential for objectivity and credibility from both within the industry and externally. Since neither the IRS nor the State of Texas requires legitimate non-profit organizations to be either tax exempt or incorporated, chartered or subordinated, we shall assume that Paypal's assumption that these are "requirements" and somehow represent "proof of legitimacy" of a non profit to be clearly a misunderstanding.
The ONLY requirement for a non-profit organization to be a non-profit organization is that "no part of the organization's income is distributable to members, directors, or officers." A non-profit organization may indeed be profitable and make money to help other people, which might include helping them start their own business or providing them with food, clothing or shelter. That is specifically our goal and purpose. We have already faxed you our Organizational Mission Statement included with our Organization and Payment Information, in which you accepted and approved. So on that note of your acceptance, we shall assume that your request was made out of lack of understanding and knowledge of federal and Texas state laws.
Inasmuch as no such request for "proof of legitimacy" was made when I opened my SEPARATE personal paypal account nor my SEPARATE "for profit" business account, I do hope that this burdensome request for "proof of legitimacy" is not indicative of PayPal's intention to discriminate against a faith based non profit social welfare organization. The fact that Paypal holds funds for 180 days is illegal in itself, and to ask us for further documents to "prove" legitimacy", places a discriminatory undue burden upon our organization, because Paypal is demanding proof of legitimacy beyond the scope of what is required by either the State of Texas or the IRS. So due to PayPal having placed a damper on the much needed revenue stream of a faith based non-profit organization for non-compliance with your arbitrary demand for "proof of legitimacy", we are well prepared to litigate your discriminatory practice, strictly on the basis of principle, not because we really want to do business with you any more than you obviously do not want to do business with us.
Sincerely,
The Way of Truth Assembly
Hello The Way of Truth Assembly,
Our review is complete and we have restored your account.
We appreciate your patience and thank you for your help in making PayPal
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