Читать книгу Nonprofit Kit For Dummies - Stan Hutton, Beverly A. Browning - Страница 14

When we use the term nonprofit organization in this book, for the most part we’re talking about an organization that has been incorporated (or organized formally) under the laws of its state and that the Internal Revenue Service (IRS) has classified as a 501(c)(3) and determined to be a public charity. If the term 501(c)(3) is new to you, add it to your vocabulary with pride. In no time, “five-oh-one-see-three” will roll off your tongue as if you’re a nonprofit expert.

Private foundations also have the 501(c)(3) classification, but they aren’t public charities. They operate under different regulations, and we don’t cover them in this book.

Other kinds of nonprofit organizations do exist; they’re formed to benefit their members, to influence legislation, or to fulfill other purposes. They receive exemption from federal income taxes and sometimes relief from property taxes at the local level. (Chapter 2 discusses these organizations in greater detail.)

Nonprofit organizations classified as 501(c)(3) receive extra privileges under the law. They are, with minor exceptions, the only group of tax-exempt organizations that can receive contributions that are tax-deductible for their donors.

The Internal Revenue Code describes the allowable purposes of 501(c)(3) nonprofit organizations, which include serving religious, educational, charitable, scientific, and literary ends.

Check out File 1-2 at www.wiley.com/go/nonprofitkitfd6e for a more-detailed list of the activities that 501(c)(3) nonprofits take on.

Being a nonprofit organization doesn’t mean that an entity is exempt from paying all taxes. Nonprofit organizations pay employment taxes, employee salaries, and wages just like for-profit businesses do. In some states, but not all, nonprofits are exempt from paying sales tax and property tax, so be sure that you’re familiar with your jurisdiction’s laws and nonprofit reporting requirements. Also, check with the appropriate office in your state to see whether you’re required to apply for a state tax exemption or a license to solicit funds.