What is the first step in starting a nonprofit?
The answer may not be what you expect. The initial corporate meeting is the essential first step in forming a nonprofit organization. It is at this meeting that the initial board of directors is installed and officer titles determined. The minutes (notes) of this meeting should include a resolution that…
What does it mean to be a 501(c)(3) organization?
Being “501(c)(3)” means that a particular nonprofit organization has been approved by the Internal Revenue Service as a tax-exempt, charitable organization. “Charitable” is broadly defined as being established for purposes that are religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention…
Does nonprofit, 501(c)(3), and tax-exempt all mean the same thing?
Actually, no! These terms are often used interchangeably, but they all mean different things. Nonprofit means the entity, usually a corporation, is organized for a nonprofit purpose. 501(c)(3) means a nonprofit organization that has been recognized by the IRS as being tax-exempt by virtue of its charitable programs. Tax-exemption is the result of…
What benefits does being 501(c)(3) offer my nonprofit and its contributors?
One of the primary benefits of being tax-exempt under IRC Section 501(c)(3) is the ability to accept contributions and donations that are tax-deductible to the donor. Additional benefits include, but are not limited to: Exemption from federal and/or state corporate income taxesPossible exemption from state sales and property taxes (varies…
What is a 501(c)(3)?
501(c)(3) – Charitable, educational, religious, literary, testing for public safety, promotion of amateur athletics, prevention of cruelty to children or animals
