THE MANY BENEFITS OF A RECOGNIZED 501(c)(3) CORPORATIONS
- Contributions made to 501c3′s at death are tax free and are exempt from federal taxation.
- Income earned by the Non-Profit is Tax Free.
- The Non Profit has Perpetual Life so that Non Profit can keep on furthering its tax exempt purpose even after founders pass on.
- Special Employee Benefits including sick pay, group life insurance, accident and health insurance, payment of medical expenses and coverage of pension plans.
- Limited liability for directors, officers, employees, volunteers and members. This provides incentives to those asked to serve the organization whether on its board or otherwise.
- Corporate formalities which enable the organization to provide a structure for decision making especially when disputes exist between individuals about the direction of the non profit.
- Donors can make charitable contributions to your company and receive a tax deduction on their tax return and pay no taxes on this money. Donors may give property, money, stock and services. [Please note that Donors may not receive consideration (money, free dinner) in return for their donation. Otherwise, a full deduction may not be possible.]
- 501(c)(3) status qualifies your nonprofit corporation to receive literally billions of dollars in private and public grant money which is given out every year. If you are not recognized as a 501(c)(3) Corporation, these foundations and philanthropy organizations will not even allow you to submit a grant (request) for money.
- Being a 501(c)(3) will qualify your corporation for participation in literally hundreds of governmental programs operated by the Federal and State Governments of this country. The government will only allow nonprofit corporations with 501(c)(3) status to participate in these programs.
- Cheaper Advertising Rates in publications
- Lower Membership Rates to places like the Price Club.
- Non profit employees can be eligible to participate in job training programs of federal and state government.
- Lower Postal Rates on 3rd Class Bulk Mailing. (Contact your local post office)
- Discounted space from internet service providers.
- Free radio and PSA announcements provide by local media.
- Articles of Incorporation containing the Exempt Purpose Statement as described in IRS Code section 501(c)(3) and defined in Treasury Regulation 1.501(c)(3)-1 Paragraph d and the Dissolution Statement described in Treasury Regulation 1.501(c)(3)-1 Paragraph b subparagraph 4 (“Organizational Test”).
- Employer Identification Number
- By-laws of the Organization
- Minutes of Board Meetings
- Names, Addresses, and Resumes of Board Members
- Names and addresses of all Active Members
- Inventory of Assets like cash, furniture, equipment, property, pledges…
- Inventory of Liabilities like mortgages, accounts payable, loans…
- Rent/Lease Agreements and Contracts
10. Revenue and Expense Statements for the last four years or as far back as possible if your organization has been in existence for less than four years.
11. Written Reason for Formation and History of the organization.
12. Organization Mission Statement or Statement of Faith or Beliefs for Churches and other Religious Organizations.
13. Organization Activities, Operations and Programs Documentation including your statement of purpose & operations, food programs, fundraisers, flyers/brochures/pamphlets…
14. Financial Support Documentation including all sources of revenue like contributions, tithes, offerings, fundraisers…
- Fund Raising Program Descriptions