There seems to be a meme going around the VPC is somehow violating its status as a 501(c)(3) organization.Â I would encourage everyone to examine the IRS requirements in this regard:
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organizedÂ and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
What are exempt purposes?
The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.Â The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.
VPC is in no way jeopardizing it’s tax exempt status by merely holding a Federal Firearms License.Â If VPC were selling firearms at retail, which one can be pretty sure they are not, then they would be engaging in a non-exempt activity which would draw their tax status into question.Â If they hold a federal firearms license for purposes related to one of the exempted activities, then that is just fine by the IRS.