Saturday, February 2, 2019
Kinds of Non-Profit Organizations :: Internal Revenue Services
Many people know about 501(c)(3) nonprofit constitutions, but other types of nonprofits are not as commonly known. The IRS accomplished several partings of the Internal Revenue Code that nonprofit governances can suffice under. An organization desiring to do for nonprofit lieu, must carry out under the section that fits its purpose. Understanding the types of nonprofits available and the qualifications for each helps you choose the correct section to maintain under.According the IRS, five basic classifications of nonprofit organizations exist under ingredient 501(c)(3)of the Internal Revenue Code. Classifications include gracious, religious, educational, scientific and literary. A nonprofit organization may fall under one or more classifications. For example, a Christian charity providing food to homeless citizens could fall under charitable and religious classifications. not-for-profits must apply for federal tax-exemption as a 501(c)(3) by completing knead 1023. 501( c)(3)nonprofits can offer tax-exempt donations to individual contributors.Nonprofit organizations formed to promote social and community welfare can apply for federal tax-exemption under Section 501(c)(4) of the Internal Revenue Code. To qualify, organizations must support a benefit to the general public. Organizations catering to a private base of people do not meet eligibility requirements. An example of a 501(c)(4) is an organization that provides social resources to retirees. Charitable, educational and recreational organizations that do not qualify for 501(c)(3) status can apply under this section. Unlike 501(c)(3) nonprofits, 501(c)(4) organizations can participate in lobbying activities. Organizations whose primary business with the public reflects that of a for-profit corporation cannot qualify as a 501(c)(4). Nonprofits must apply for this status by completing Form 1024.Social clubs formed for nonprofit exempt purposes can apply for federal tax-exemption under Section 501 (c)(7) of the Internal Revenue Code. Form 1024 is used to apply for a 501(c)(7). To qualify under this section, nonprofits cannot discriminate against citizens based on race, blazon or religion. However, religious 501(c)(7) organizations can limit its membership to those belonging to a particular religion. 501(c)(7) nonprofits must receive support from memberships fees and dues. Example of nonprofits with this status include college fraternities and sororities, country clubs and homeowners associations that meet for the purpose of preserving its recreation areas and facilities.
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