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 taxes
• 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