Advantages of 501 (c) 3 status:
Exempt from federal income tax
Contributions are deductible by the donors
Qualify for reduced postal rates
Exemption from Federal Unemployment Tax Act
May qualify for state sales tax and other local tax exemptions
Provides proof of eligibility to accept grants
Disadvantages of 501 (c)3 status
Prohibits Lobbying in election campaigns
allows only minor lobbying by group
Prohibits individual members from benefiting from the group's earnings
Info obtained from the AFP Chapter Resource Guide 2010
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How do you get 501 (c) 3 status?
ReplyDeleteThis is a complicated process but Pennsylvania Association of Non Profits (PANO) does a good job explaining it. go to the link for details. http://www.pano.org/tipsuccess.php
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