Nonprofit Elite Blog
What Does Tax Exemption Mean?
When people think about, or hear about, a nonprofit, they often think of an entity that is tax exempt. Depending on the nonprofit, there are many who even view them as exploiting the tax system to avoid paying taxes. The good thing is that Internal Revenue Code Section 501(c)(3), commonly referred to as 501c3, actually has really strict guidelines for tax exemptions. But what, exactly, is tax exemption? If you think that a nonprofit is exempt from all taxes, you [...]
What Do I Need to File for 501c3 Status
Are you looking to apply for tax exemption status from the Internal Revenue Service? Then you’re going to need to know which forms need to be filled out and how to prepare for the federal filing requirements for nonprofits. In order to file for 501c3 status you need to establish your nonprofit corporation on both the Federal and State level. Here's the process and what you need when filing for 501(c)(3) status. What are are the [...]
Can You Start A Nonprofit With No Money?
Just like when starting a business, nonprofits also have starting costs in the startup phase. Of course, these costs will differ depending on what your nonprofit will be doing as some will require more than others to start. Unlike starting a business, however, you can actually start up your own nonprofit without your own funds. There are many ways to obtain funding to start your nonprofit, and yes, these methods are legal. Just remember you will still have rules [...]
What Can A 501c3 Organization NOT Do?
A nonprofit, 501c3 organization can do a lot of good for a lot of people. They are incredible ways to give back to your community or those that are less fortunate. A 501c3 also comes with a lot of benefits when it comes to tax exemptions. However, like all things, even 501c3 have limitations on what all they can do. In fact, breaking the rules that govern 501c3 organizations can even have your status revoked. While it’s important [...]
What Are The 3 Types of 501c3 Nonprofits?
Starting and maintaining a successful nonprofit organization is not an easy task. There are many steps needed to ensure legitimate 501c3 status with the IRS. The accomplishment of starting your own organization, though, is a fantastic feeling. If you’re in the beginning phases of your nonprofit startup, you probably have several questions including, “What type of nonprofit am I?” A “nonprofit organization” is a broad and very generalized term for an organization that does not distribute profits [...]
Updated and Current Form 1023 Filing Costs for 2022
As of January, 2022, the IRS filing fee (or User Fee) for filing IRS Form 1023 is $600 regardless of your organization's previous revenue or projected revenue. The IRS filing fee or (or User Fee) for filing IRS Form 1023-EZ is now $275, regardless of your organization's previous revenue or projected revenue. This is the same as the filing fee since 2018. For more information on 501c3 application costs or help with formation documents, please call 1-800-268-4388 or email [...]