You are excited about a cause and you want to make a difference, but how can you do that if you're bogged down trying to sift through tax law? Does your organization qualify to be a tax-exempt non-profit? Is it better to go through the process of applying to form a new 501(c)(3) or to affiliate with an existing one and gain many of the same advantages that way? It depends on your situation. We can evaluate your unique circumstances and advise the best course of action. There are many benefits to 501(c)(3) status, including exemption from federal income tax and the ability to receive charitable contributions which are tax-deductible. In addition, some organizations are even exempt from some employment taxes. How often do you give to an organization that isn't officially a non-profit, on good terms with the IRS? If you're like most people, you would never do that. Your supporters are much more likely to contribute to your cause if their contributions are tax-deductible. For some, tax deductions are a primary factor in deciding where their money can be most effectively used.
Ellsworth & Associates can help you properly obtain tax-exempt status and make sure you keep that status. You must meet the recordkeeping, filing, and disclosure requirements dictated by the IRS in order to be a tax-exempt organization. This isn't something to take lightly. It's remarkably easy to lose your tax-exempt status once you've obtained it. There is no better way to make sure every "I" is dotted and every "T" is cross than to turn to tax professionals who know the tax laws that apply to your non-profit inside and out.
To be tax-exempt, your organization must have one or more of what the IRS calls, "exempt purposes":
fostering national or international sports competition
preventing cruelty to children or animals
testing for public safety
If you think your organization qualifies for tax-exempt status, or you're interested in making sure you keep the tax-exempt status you already have, contact Ellsworth & Associates today.