How To Obtain 501c3 Nonprofit Status
Contributing to the community can be a great thing and can come with tax benefits as well. Let us help you obtain a 501c3 status!
What You Need To Get 501c2 Status
What is a 501(c)(3)?
501c3 is a tax-empty status given to businesses by the IRS who want to become nonprofit. 501c3 is named after the section of the internal revenue code that outlines the details of this status.
To get 501c3 status, the business must meet specific requirement including being organized and operating in a certain way for exempt purposes.
Any profits made from the business bust be used to help further fulfill the nonprofit's exempt purposes.
Benefits of having a 501c3 Status:
1. Tax Exemptions: Having 501c3 means getting exempted from federal income tax.
2. Donor Incentives: Contributions to a 501c3 organization are tax-deductible, giving people an incentive to donate money to nonprofit organizations.
3. Grants and Funding: Many public and private grant are only available to nonprofit organizations. Obtaining a 501c3 status opens the door to funding that may not be given to other businesses.
4. Credibility: Getting 501c3 status gives the organization credibility, making it easier for the organization to be given donations.
5. Reduced Postal Rates: 501c3 nonprofit organizations can get reduced rates for postal mail, which can be beneficial if they use mail for most of their communication.
How to Apply for a 501c4 Status?
Go to IRS.gov website at https://www.irs.gov/charities-non-profits/how-to-apply-for-501c3-status for more information on what form to fill out.
Interesting in becoming a 501c3 nonprofit organization? Contact us now to get a consultation.