Difference between revisions of "How to obtain tax-exempt status"
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In addition to Form 1023 and the other accompanying documents and statements, a literary organization must explain the NGO’s operations, including whether the organization makes any sales to the public and the “type of literature” sold.<ref>Ibid.</ref> | In addition to Form 1023 and the other accompanying documents and statements, a literary organization must explain the NGO’s operations, including whether the organization makes any sales to the public and the “type of literature” sold.<ref>Ibid.</ref> | ||
| − | =====Amateur | + | =====Amateur Sports Organizations===== |
| − | + | ''Eligibility'' | |
There are two types of amateur sports organizations that may be eligible for tax-exempt status:<ref>Ibid.</ref> | There are two types of amateur sports organizations that may be eligible for tax-exempt status:<ref>Ibid.</ref> | ||
| − | # NGOs that foster national and/or international amateur sports competition, but do not provide athletic facilities or equipment | + | # NGOs that foster national and/or international amateur sports competition, but do not provide athletic facilities or equipment. |
| − | # | + | # Qualified amateur sports organizations. |
A sports organization is a qualified amateur sports organization if it is organized and operated:<ref>Ibid. Qualified sports organizations may provide athletic facilities and equipment. Ibid.</ref> | A sports organization is a qualified amateur sports organization if it is organized and operated:<ref>Ibid. Qualified sports organizations may provide athletic facilities and equipment. Ibid.</ref> | ||
| − | + | *To foster national and/or international amateur sports competition | |
| − | + | *To conduct national or international sports competition or “to support and develop amateur athletes for that competition.” | |
=====Prevention of cruelty to animals or children organizations===== | =====Prevention of cruelty to animals or children organizations===== | ||
Revision as of 10:22, 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).
