Profit vs Non-profit

Three types of 501 (c) (3) Charitable Educational Religious

Charitable Organizations that show that they are organized and operated for purposes that are beneficial to the public interest.

Organizations that show they support educational institutions.

Religious Organizations whose practices are associated with religious beliefs or creeds

Examples of NPO Churches Counseling Centers Ministries Family Support Services Schools Community Development Centers

To obtain a 501 (c) (3) status…… An organization must show a defined charitable purpose that must benefit the public.

Articles of Incorporation The birth certificate of the company. Wants to know what the company is, the registered agent, the address of the board members Must sign a statement of dissolution that says the NPO will notify the IRS

EIN Employee Identification Number Is the SS# of the 501 c3; is the tax ID # Identifies the company when doing taxes Used when ordering supplies,

Form 1023 The 501 (c) (3) application form Present the Articles of Implementation EIN A projected 3-year financial report

Determination Letter is 501 (c) (3) approval Must have when applying for grants

Benefits of an NPO Exempt from paying federal taxes on income. Can apply for grant to fund their programs Donors are able to deduct charitable donations from taxes. Can apply for state tax exemption and property tax exemption for property owned by that NPO