Have you ever wondered how you’re supposed to determine whether your organization is eligible for exemption from federal income tax? The possibility of being tax-exempt is permitted under section 501(a) of the Internal Revenue Code. But what about determining private foundation status? Well, that is covered by section 501(c)(3) of the Internal Revenue Code. Let’s […]
Tag: charitable organizations
What to Know About Taxes and Nonprofits
Making money for stakeholders is the primary goal of for-profit businesses. Nonprofits are different: their primary goal is benefiting their cause. To qualify as a nonprofit, the entity must serve the public good in some way. No individual or shareholder may profit from the organization, although nonprofits may pay reasonable salaries as well as expenses […]
How to Organize a Nonprofit: The 501(c)(3) and More
Most of the estimated 1.5 million nonprofit organizations in the United States are 501(c)(3) organizations, but there are many other categories of nonprofits. The nonprofit’s membership, mission and structure dictate which category is most appropriate for your nonprofit. Many nonprofits fall under 501(c)(3) for a good reason —the category includes entities that are organized and […]