NONPROFIT ORGANIZATIONS

THIS IS THE BEGINNING

SOME PEOPLE THINK

That just by creating a Nonprofit Corporation,
the Corporation is Tax-exempt
…That is NOT the Case!

Incorporating a nonprofit merely establishes it in the state of formation. To become a tax-exempt nonprofit, you must file for tax-exempt status with the IRS and be approved.

WHAT DOES TAX-EXEMPT
REALLY MEAN?

Being tax-exempt means that the net profits of the nonprofit organization are exempt from federal income taxes.

Certain states allow state-level tax-exempt status, and in such cases, the net profit is also exempt from payment of state income taxes.
We make setting up your church or ministry simple.
From incorporation to 501(c)(3) status and everything in between, we take care of it all. There are no IRS forms to fill out, no IRS agents to talk to and no complicated paperwork for you to complete.
Focusing on your ministry and on the people God has given you can remain your top priority as we come to your side to serve you in accomplishing your vision.

Types of tax-exempt status for Nonprofit Organizations

There are different types of tax-exempt nonprofits. The most well-known and common is 501(c)(3), which are public charities or private foundations established for purposes that are religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals and children.

There are, however, 501(c)(4) through 501(c)(27) organizations, which are tax-exempt but not charitable.

(The numerical identifier of nonprofits, such as 501(c)(3), references the section of the Internal Revenue Code under which they were granted their tax-exempt status.)

View the IRS Organization Reference Chart for a listing of nonprofit classifications and the appropriate required fees.

Church and Charity 90%
Medical and Scientific 80%
Assistance and other 70%
0
%
Education
0
%
Charity
0
%
Religious
0
%
Health

BENEFITS OF OBTAINING
TAX-EXEMPT STATUS

In addition to being exempt from federal and state income taxes, tax exemption offers other benefits:

  • Donations to the nonprofit are tax-deductible. With 501(c)(3) nonprofits, donations are tax-deductible to the donor.
  • Access to grants earmarked for 501(c)(3)s. Certain grants and other public allocations are only available to 501(c)(3) organizations.
  • Possible state sales and property taxes exemption. This benefit varies by state.
  • Credibility. There is established credibility for an organization that is recognized by the IRS as a tax-exempt nonprofit.
  • US Postal Service discounts. Tax-exempt nonprofits generally can receive discounts on bulk mail rates.

FROM
INCORPORATION TO 501(c)(3)

We take care of the paperwork, required documents and everything in between!

Copyright © 2012-2017. All rights reserved. ACR and Accounting & Consulting Resources are the registered trade names of Burgos & Associates, Inc. A Maryland Corporation.

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