Not For Profit Corporations
What Is A Non-Profit 501(c) Corporation?
Non-Profit Corporations are formed for charitable, scientific, religious or educational purposes, etc. If the corporation is to qualify for tax-exempt status by donations then it has to qualify with the IRS.
Sometimes they are referred to as 501(c)(3) corporations. Without the IRS qualification, any donated funds will not be considered a tax free exemption.
The 501(c)(3) is designated by the Internal Revenue Code. The 501(c)(3) qualifies your non-profit corporation as being tax exempt.
The non profit corporation will not be a taxable entity as long as its activities are for ** charitable, scientific, religious or educational, or a combination thereof and as long as it is issued the exemption.
Contributors will be permitted to deduct the contribution on their personal tax returns. Once the IRS has issued the tax exempt status, the corporation will be allowed to receive a tax free contribution. You must be approved by the IRS before donations are considered tax deductible.
Global Corporate Services will arrange to form your new corporation in such a manner so as to be in compliance with state law and qualify for the special 501(c)(3) exemption status. We are associated with a legal firm who will prepare and submit the paperwork to the IRS to obtain the 501(c)(3) tax-exempt status. Once the application has been accepted, you will receive a formal letter of determination from the Internal Revenue Service. This process, once properly submitted, takes about 3 to 6 months.
Click here to see our chart on clarification of non-profit tax exempt companies.LINK
Non-Profit Corporation Fee - $525.00 - Includes The Following:
Free Name Search for Non-Profit Corporation
Expedited Fee Included for Processing in 24 Hours
Preparation and Recording of the Certificate of Incorporation
State and County filing fees
Certified Copy of Certificate of Incorporation
Delaware Registered Agent Fee
Basic First Class Mail Forward
Process Application*(SS4) for the Federal Identification Number
How To Apply for 501(C) Status
To apply for 501(c) status by having our attorney file the forms on your behalf. Please also note that some nonprofit corporations must also qualify as a 501(c)(4) or other tax-exempt company. Please be sure to speak with a qualified legal and/or financial advisor before making any decisions. You may address your questions to our Tax Accountant via email.
** The following text was taken from the IRS site on qualified exemptions for not for profit companies.
An organization may qualify for exemption from federal income tax if it is organized and operated exclusively for one or more of the following purposes:
Testing for public safety
The prevention of cruelty to children or animals
Fostering national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment)
To Qualify For 501(C) Status
To qualify, the organization must be a corporation, community chest, fund, or foundation. A trust is a fund or foundation and will qualify. However, an individual or a partnership will not qualify. Examples of Qualifying organizations include:
Examples of Qualifying organizations include:
Nonprofit old-age homes
Charitable hospitals or other charitable organizations
Chapters of the Red Cross or Salvation Army
Boys" or Girls" Clubs