Your Next Step
NPO FAQs

QUALIFICATIONS / REQUIREMENTS

 Q: Are NPOs required to pay for anything?

A: There are NO performance requirements or fees for the NPO. They fill out the application and submit the necessary paperwork validating their Federal Tax ID, then their supporters purchase from the NPO web portal, and then the NPO receives royalties. It really is that simple.

 Q: What organizations are eligible to participate in Market America’s NPO Program?

A: The Market America NPO Program is open to EVERY organization that falls into a 501(c). This includes 501(c) 1 through 28 (see below). It is also open to those with a 501(d) and there may be others if they can validate their tax exempt status and provide Federal Tax ID # and documentation. According to the IRS Publication 557, in the Organization Reference Chart section, the following is an exact list of 501(c) organization types and their corresponding descriptions.

501(c)(1) — Corporations Organized Under Act of Congress (including Federal Credit Unions)
501(c)(2) — Title Holding Corporation for Exempt Organization
501(c)(3) — Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to
Foster National or International Amateur Sports Competition, or Prevention of Cruelty to
Children or Animals Organizations
501(c)(4) — Civic Leagues, Social Welfare Organizations, and Local Associations of Employees
501(c)(5) — Labor, Agricultural, and Horticultural Organizations
501(c)(6) — Business Leagues, Chambers of Commerce, Real Estate Boards, etc.
501(c)(7) — Social and Recreational Clubs
501(c)(8) — Fraternal Beneficiary Societies and Associations
501(c)(9) — Voluntary Employees Beneficiary Associations
501(c)(10) — Domestic Fraternal Societies and Associations
501(c)(11) — Teachers’ Retirement Fund Associations
501(c)(12) — Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies,
Mutual or Cooperative Telephone Companies, etc.
501(c)(13) — Cemetery Companies
501(c)(14) — State-Chartered Credit Unions, Mutual Reserve Funds
501(c)(15) — Mutual Insurance Companies or Associations
501(c)(16) — Cooperative Organizations to Finance Crop Operations
501(c)(17) — Supplemental Unemployment Benefit Trusts
501(c)(18) — Employee Funded Pension Trust (created before June 25, 1959)
501(c)(19) — Post or Organization of Past or Present Members of the Armed Forces
501(c)(21) — Black lung Benefit Trusts
501(c)(22) — Withdrawal Liability Payment Fund
501(c)(23) — Veterans Organization (created before 1880)
501(c)(25) — Title Holding Corporations or Trusts with Multiple Parents
501(c)(26) — State-Sponsored Organization Providing Health Coverage for High-Risk
Individuals
501(c)(27) — State-Sponsored Workers’ Compensation Reinsurance Organization
501(c)(28) — National Railroad Retirement Investment Trust

Churches that are not 501(c) certified MUST submit a form from the IRS documenting that they have
been issued a valid Federal Tax ID#

Q: How does the program work when presenting to organizations that may have one 501(c) for the overall organization  but different units within it (i.e.: any large organization with regions, districts, conferences, chapters, posts, etc.)?

A: Each group or part of the larger group that wants to participate must have a unique Federal Tax ID #.The paperwork with that unique tax ID is what needs to be sent to Market America with the NPO Application.

Q: What is an EIN number?

A: An EIN number is business’ Federal Employment Identification Number assigned by the government.It is similar to a social security number.

ROYALTIES

Q: Does the NPO also have the opportunity to earn .5% cash back on referrals to their site?

A: No, they are an entity with their name on a web portal and a royalty generating position in the MPCP,
they are not a PC.

Q: Do NPO’s get BV/IBV on purchases that they make?
A: No, the NPO does not order anything, however, members of the NPO can register as a PC on the NPO’s Web Portal then when they shop the NPO will receive the BV/IBV from their purchases. The supporters receive Cash Back and .5% Cash Back on all referral purchases.

 

Q: Is the benefit to the NPO greater than just that of the CashBack program?
A: Yes, the additional benefit is, the NPO is able to receive weekly royalty checks for BV/IBV flowing up from centers placed below and for the products purchased from the NPOs Web Portal by their supporters.

 

Q: Should there be any concern about the privacy of the NPO’s supporters?
A: The Supporters will have to register as PCs on the NPOs Portal to earn CashBack. We do not share our Customer List with anyone. We have a Privacy Policy.

 

Q: Is there a minimum amount before a monthly royalty check is cut?
A: There is a $25 minimum amount required before monthly royalty checks are issued.

 

TAXATION 

Q: Can products ordered from the NPOs Web Portal be used as a tax write-off since they are purchased  from a nonprofit organization?
A: No, purchases are not made from the nonprofit organization, they are made from Market America and/or MA partner Stores.

Q: How does getting money from MA affect their NPO status?
A: We can not advise them on their NPO status. The payments they receive are Royalties. They should consult their tax professional for more detailed information.

Q: Is this considered Revenue Sharing among NPOs?

A: They should consult their tax professional.

Q: Is the money generated considered taxable income because it’s not from traditional sources such as
donations, grants, etc.?

A: They should consult their tax professional.

Q: When receiving royalty checks, is the tax treatment the same as a regular donation for NPO’s?

A: They should consult their tax professional.

Q: How is Market America going to report royalties to IRS?
A: The weekly and monthly royalties are both included on the 1099 at the end of the year.

Q: When the NPO receive royalties, is this going to affect their 501(c) status?
A: They should consult their tax professional

ADMINISTRATION

Q: What is the NPO’s product liability in regards to ma Branded products?
A: The NPO does not sell anything. The NPO‘s supporters are making purchases from Market America. If the NPO still has concerns about this then they should consult their attorneys.