IRS 501c3 Status is the Way to Go
Non Profits with IRS 501c3 status are sometimes tough to start, however terribly rewarding in their activities. Although it may take effort to make a non profit, learn to fund them, and run it successfully, the task is worth it?s weight in gold.
There are a couple of things that make a big difference when wanting to start a non profit organization. Many times a week I?m asked why a non profit organization should file for IRS 501c3 status. You may or may not know that a non profit can be made in a specified state with non profit status, though not IRS 501c3 status which makes it excused from taxes. Exemption for a non profit is filed as well as incorporating a non profit business by completing and submitting the 501c3 form 1023 from the Dept of the Treasury I. R. S. Once this form is submitted and accepted by the IRS, the non profit corporation then becomes exempted from tax.
The Coveted IRS 501c3 Status
This IRS 501c3 status is desired by most affiliations doing non profit work. The benefits are many, including although not restricted to, being exempt from tax and being able to accept donations and grant receipts to donors to subtract from their taxes. The ability to grant deductible receipts is a massive advantage as it draws donors who can use the tax deduction.
For many individuals, the facility to subtract donations from their taxes after giving to a tax-free non profit is an additional motivation to donate. When offered a choice to give to a non profit with IRS 501c3 status, which either an individual would be permitted the tax deduction or not, many would choose the former. Granted, depending on the subject?s tax status and amount of deductions, the individual might or might not really be well placed to use the reduction.
Why IRS 501c3 Status?
One may think to themselves, why would not every non profit seek IRS 501c3 status? The answer is many times fiscal and knowledge-based. Seeking exemption thru the IRS 501c3 application has steep filing charges linked with it that many non profits when just starting out can?t afford. Additionally, the IRS 1023 is lengthy and frightening in its completion. Due to these 2 reasons alone, many skip signing up for exemption and rely on donations for which it?s grantors don?t require the tax reduction. It?s also possible that donors don?t realize that they won?t get a tax deduction for their donation when giving to nonexempt non profit organisations.
When deciding on whether to file for tax exempt status as a nonprofit, the decision shouldn?t be troublesome. Filing for exemption status is the right answer. Getting the standing can be pricey, but, there are more ways to get IRS 501c3 status without costing a fortune. It is worth your time and energy to have a look into alternative methods of getting exempt status such as fiscal sponsorship.
To learn more about IRS 501c3 Status, Click Here ?->> http://SimpleNonprofit.com Scott Michael Ringo, an entrepreneur, is known worldwide as the nonprofit Guru and expert fundraiser because he helps others easily start and fund non profit companies all over the world. Through his work with non-profits worldwide, he helps others start and run successful non profits. Scott is a legacy builder and will help you build your nonprofit heritage.
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