Qualifying for 501c3

Many individuals often wonder whether their proposed activities and services qualify for 501c3 tax exempt status.  Below we will highlight some of our recent projects which qualify for 501c3 tax exempt status as charitable, educational or religious.

Addiction Prevention & Support  

This nonprofit organization is helping individuals in Tennessee. Their main focus to provide support and resources to individuals in the community who is struggling with addiction. They plan on providing resources including, but not limited to, food, clothing, hygiene products, and faith-based curriculum.

Cancer Assistance and Support  

This charitable organization is located in Texas. They are focusing on helping individuals in the community who are suffering from cancer and their families. They also want help individuals with disabilities.

Read more: Qualifying for 501c3

Nonprofits and Technology

 

In this internet driven world, all organizations have to stay updated on their technology usage in order to be relevant. This especially includes nonprofit organizations. The main types that are most helpful are website builders, apps, Google tools, and Microsoft centers.

 

Website Builders

Websites are the key to showing your audience your mission statement, purpose, programs, and other essentials to your specific organization. There are a few free and low-cost website builders that are highly recommended. Wix is the most commonly known low-cost website builder. All reviews say that it’s easy to use and has many useful features. The basic plan is free, but you could also go for one of the low-cost, ad-free options if you prefer that. Another good website builder is Weebly. This company also provides a multitude of pre-made templates and features to help with creating your website. Their basic plan is free as well, but they also provide other paid plans that start at $8 per month. One website builder that has been getting a lot attention for the past year is Squarespace. This company is mainly known for their minimalist templates and intuitive editor interface. When you first sign up they give you a 14-day free trail, and after that their basic plan starts at $12 per month.

Read more: Nonprofits and Technology

Crowdfunding Sites For 501c3 Nonprofits

 

Crowdfunding is a method of raising money through the collective effort of friends, family, customers, and individual investors. The main objective is to get a large number of people to donate a small amount each for your organization. Crowdfunding sites provide an easy place to showcase and provide financial transactions for people to donate. The top three of these sites are GoFundMe, YouCaring, and FirstGiving.  If you're looking to crowdfund for your nonprofit and you're confronting questions for the first time, you should start by checking out the information provided by the National Council of Nonprofits.

Read more: Crowdfunding Sites For 501c3 Nonprofits

501c3 Public Charity or Private Foundation

 

Every section 501c3 organization is classified as either a private foundation or a public charity. Private foundations and public charities are distinguished primarily by the level of public involvement in their activities. Though greatly outnumbered by public charities, private foundations bring a lot to the table. Many people have a layman’s understanding of the difference between public charities and private foundations, but there are some significant differences that can determine what type of nonprofit organization you want to setup.

Read more: 501c3 Public Charity or Private Foundation

Nonprofit Hunger Relief Organizations

As the holidays are approaching, remember that there are some individuals who are unable to have a nice hot meal or afford food. Thankfully, there are many charitable organizations set up exclusively to help these individuals. Usually there are two main types of 501c3 charitable hunger relief organizations: food pantries and meal centers.

Food pantries (or food banks) usually involve receiving donations of nonperishable canned food items and redistributing these items back out. These charitable organizations are focusing more on giving the grocery items to individuals who are unable to afford these items, but have a means of cooking them. Sometimes these nonprofit food pantries will also buy or take donations of groceries for specific families in need in the community.

Read more: Nonprofit Hunger Relief Organizations

Keeping Your 501c3 in Compliance

 

501c3

Once you've navigated the path to obtaining 501c3 status, there are important measures required to maintain your exemption with the Internal Revenue Service (IRS). This overview is a starting point in understanding how to remain in compliance.

 

 

 

Fundraising

Fundraising and applying for grants to support the functions of your organization are all within the rules of operation; however, all funding received must go toward the activities and programs of the organization or toward salaries for its employees.

Read more: Keeping Your 501c3 in Compliance

Recordkeeping Part I – Organizational Records

 

OrganizationalRecords

 When speaking about requirements for recordkeeping, nonprofits do differ from profit businesses. Each nonprofit organization should keep:

 

1. Organizational/Permanent Records

2. Financial Records.

In this article, we focus on the organizational/permanent records.

 

Organizational/Permanent Records: this includes all the paperwork that the organization should keep from the day of establishing the organization.

 

Read more: Recordkeeping Part I – Organizational Records

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