If you want your nonprofit corporation to be exempt from federal taxation and allow donors to deduct their donations on their tax returns, you will need to complete and submit an Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code (IRS Form 1023). Before getting started, you should check to be…
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If you’ve already formed your nonprofit organization, congratulations! You’ve taken the first step in creating a charity or tax exempt organization. However, just because you formed a nonprofit organization doesn’t mean that you will automatically be tax exempt. The IRS has specific requirements that must be followed before it will grant tax exempt status to…
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Charitable Deductions – Frequently Asked Questions This article covers the following frequently asked questions about deducting contributions made to charity: What are charitable contributions and qualified organizations? What types of contributions you can deduct on your tax returns? How much of the contribution you can deduct? What records you need to keep? Are there limits…
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This summer, the IRS finally released the much anticipated Form 1023EZ, otherwise known as the Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. This is great news for smaller organizations who want to give back to their communities without having a huge operating budget. In addition, it should speed…
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The greatest wealth transfer in history is underway, according to a new report. A study from the Boston College Center on Wealth and Philanthropy projects that $59 trillion is expected to be passed down to heirs, charities and taxes between 2007 and 2061. The study said heirs will receive $36 trillion over that period, while…
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It’s about to be the end of another year which means there’s some yearly housekeeping every nonprofit organization must do. Here are six things every nonprofit should do before the end of the year: 1. Have Your Annual Meeting. The bylaws for most nonprofit corporations require the organization to have an annual meeting. This is…
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Charitable and other organizations that meet the requirements of Internal Revenue Code section 501(c)(3) are exempt from federal income tax. Donations made by individuals and corporations to charitable and other tax exempt organizations are deductible under Internal Revenue Code section 170. Exempt charitable organizations fall into one of two classifications: a public charity or private…
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Deducting charitable donations does not have to be complicated. We’ve listed some helpful tips for getting you started here. There are two big reasons why everyone should donate to charity. First, it makes you feel good knowing that you helped others in need. Second, you can deduct your charitable contributions which may help lower your…
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Arizona corporation commission nonprofit forms: the good and the bad regarding them. We’re here to keep you covered. Recently, the Arizona Corporation Commission (ACC) released all new forms for entity filings. This includes new forms for nonprofit corporations. Depending on your goals, this could either help you or hurt you. Nonprofit corporations that wish to…
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On June 20, 2013 Governor Jan Brewer signed House Bill 2457 abolishing Arizona’s charitable solicitation laws. As a result, Arizona charities are no longer required to file annual Charitable Organization Registration (or Renewal) forms with the Arizona Secretary of State. Why Did Arizona Have the Charitable Solicitation Requirement in the First Place? Americans are the…
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