Everything You Need to Know About Tax-Exempt Status

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 […]

IRS Issues Advice for the Tax Exempt

If you’re planning to enter the world of tax-exempt organizations, you first need to understand what a tax-exempt organization actually is. According to the IRS, the organization must fall into one of the following categories: charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to […]

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 […]

Tax and Nonprofit: The Strict Requirements

Nonprofit accounting may seem overwhelming at times, but it becomes easier once you begin to understand how finances function and move within your organization. By using this info, you can implement best practices for effective accounting decisions. With the right accounting practices, you can be compliant and transparent, creating reports that let donors see how […]