Difference between revisions of "How to obtain tax-exempt status"
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There are additional requirements to those described above for specific types of NGOs when applying for tax-exempt status under section 501(c)(3). Educational organizations, charitable organizations, churches, scientific foundations, literary organizations, amateur sports organizations, and organizations dedicated to the prevention of cruelty to animals or children must meet additional eligibility criteria and/or file additional documents or information with their application. | There are additional requirements to those described above for specific types of NGOs when applying for tax-exempt status under section 501(c)(3). Educational organizations, charitable organizations, churches, scientific foundations, literary organizations, amateur sports organizations, and organizations dedicated to the prevention of cruelty to animals or children must meet additional eligibility criteria and/or file additional documents or information with their application. | ||
| − | =====Educational | + | =====Educational Organizations===== |
| − | + | ''Eligibility'' | |
Organizations that may qualify as tax-exempt educational organizations include:<ref>Ibid., at 22; Internal Revenue Service, Applying for 501(c)(3) Tax-Exempt Status, at 4.</ref> | Organizations that may qualify as tax-exempt educational organizations include:<ref>Ibid., at 22; Internal Revenue Service, Applying for 501(c)(3) Tax-Exempt Status, at 4.</ref> | ||
| − | # schools or colleges | + | # schools or colleges |
| − | # groups that hold public discussions and lectures | + | # groups that hold public discussions and lectures |
| − | # correspondence schools | + | # correspondence schools |
| − | # museums and zoos | + | # museums and zoos |
# day-care centers. | # day-care centers. | ||
Revision as of 08:51, 11 August 2008
This article is intended to provide a general description of the process for obtaining 501(c)(3) status under the U.S. Internal Revenue Code and is not intended to substitute for the advice of private counsel on specific issues related to the IRC or the 501(c)(3) application process. Original draft by Bobby C. Neal.
In the United States, a non-governmental organization (NGO) is generally subject to federal, state, and local taxes unless and until the organization qualifies for tax-exempt status. This article focuses on the process for obtaining a federal income tax exemption for NGOs.[1] NGOs that meet the criteria set forth in 26 U.S.C. § 501 of the Internal Revenue Code (section 501) are eligible for a federal tax exemption.[2] The benefits to obtaining tax exempt recognition by the Internal Revenue Service (IRS) include: income tax exemption, eligibility to receive tax-deductible contributions, possible exemption from certain employment taxes, and reduced postal rates. Section 501 describes the organizations that are eligible for tax-exempt status. The most significant category of tax-exempt organizations is section 501(c)(3).
