Thursday 9 March 2017

The Benefits Of 501c3 Application Development

By Timothy Long


Generally, most passionate individuals, as well as groups seek to add to the good course of their lives. Most of such people chose to start up nonprofit organization or even take part charitable societies. Nevertheless, beginning and managing such organizations remains to be a challenging undertaking. Nevertheless, through 501c3 application development, the process becomes quite simpler.

When starting such an organization, you need to be confident and convinced, possess the necessary technical support, have the appropriate legal support, and be programmatic. When you start your non-profit organization, obtaining the 501c3 status might also be essential. The 501c status generally makes the organization tax exempt. The 501c3 status, however, is the common nonprofit organizations that are charitable. Because an organization becomes exempt from federal income tax, the taxable income from the donor is reduced. These exemptions are only possible for religious, educational, charitable, literary, as well as other related activities.

For organizations to get this status, they must apply by filling the IRS Form 1023. The form usually attracts a certain fee that is usually based on gross receipt of that organization per year. On the other hand, the organization is required to provide its budgets and financial statements. Because of all these requirements, it is important to hire a lawyer with experience in this area.

Usually, there are benefits that arise from getting a 501c3 status for the non-profit organizations. One of the advantages is that the donations from people to these organizations are usually tax-free. The donations normally come from individuals and from corporate organizations. Because of this, the donor and the receiver of such donations benefit from this kind of status.

Acquiring the status as well offers an institution the chance to receive grants from government as well as the private foundations. To request for grants, the institutions will have to attain such a status. Subsequent to obtaining this, organizations are usually able to access grants.

Organizations with 501c3 status also get extra perks. This benefits are such as special mailing privileges, discounted rates on postage, discounted or free email service and rates from the media among other perks. At the same time, the organization can get the international nonprofit organization recognition. Through such international recognition, the organization gets a better reputation and a larger audience.

The other benefit pertains to an organization being able to get extra international volunteers. The volunteers as well add to the attainment of an international status. Consequently, the institution gets a better chance of linking with other international NGOs. Through such links, an organization gets the opportunity to affiliate with such NGOs as well as getting a worldwide exposure.

Therefore, ensuring your non-profit organization gets the 501c3 status in the US is a way of opening doors for many opportunities. However, before you can start the process, it is essential you understand the whole process, and prepare for it by consulting the relevant attorney. However, you need to consider the cost associated with getting this status based on the gross receipt of your organization. By fulfilling all the requirements and obtaining the status, your organization receives the needed boost for growth.




About the Author:



No comments:

Post a Comment