|
The recognition of your organization as a 501(c)(3) tax exempt entity by the Internal Revenue Service (IRS) offers numerous advantages including:
- Exemption from federal and/or state corporate income taxes
- Exemption from F.U.T.A. (federal unemployment tax)
- Possible exemption from state sales and property taxes (varies by state)
- Ability to apply for grants and other public or private allocations available only to IRS-recognized, 501(c)(3) organizations
- Potentially higher thresholds before incurring federal and/or state unemployment tax liabilities
- The public legitimacy of IRS recognition
- Discounts on US Postal bulk-mail rates and other services
The Following Responsibilities: must be fulfilled by the 501(c)(3)
- Keep Adequate Records
- File Required Returns
- Provide Donor Substantiation
- Obey Disclosure Laws
- Generate Public Support
- Avoid “Excess Benefits” for insiders
- Shun Political Activity
- Limit Legislative Activity
- Limit Unrelated Business Activity
|