The IRS recognizes certain non-profit corporations as exempt from federal income tax. The section under the Internal Revenue Code that provides for this exemption is 501(c)(3).
In order to obtain 501(c)(3) status, your organization will, at a minimum, need to:
- Develop a mission/vision
- Form a Board of Directors
- File Articles of Incorporation
- Draft a Code of Regulations
- Obtain a Federal Employee Identification Number
- Create a budget
- Implement record keeping and accounting systems
- Apply for 501(c)(3) recognition
- Fulfill charitable solicitation law requirements
- Be aware of and comply with federal and state non-profit laws
Many of these steps require careful consideration of composition and language in order for the IRS to recognize your organization as tax exempt.
Having successfully obtained tax-exempt recognition for numerous organizations, including chamber of commerce foundations, community improvement organizations, charter schools, and veterans support groups, Amy Goodson Co., LLC can help you navigate the often complex process. Contact us today to see how we can help you.