Tax Exempt Organization
We have decades of experience providing valuable insight and advice to all varieties of nonprofit and tax-exempt organizations. These organizations face unique challenges in creation, compliance, governance, fundraising and compensation, among other issues. The laws governing such organizations are complex, and their regulatory environment, transactions and daily activities increasingly raise new and complicated tax questions. We understand clients’ budget and time constraints, and our breadth of experience enables us to be efficient in providing practical and creative solutions for clients’ common and unique issues that may arise. Our clients include public charities, supporting organizations, community and religious organizations, trade associations, business leagues, and other types of nonprofit organizations.
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
Types of Tax Exempt Organization
Charitable Organizations
Organizations organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational, or other specified purposes and that meet certain other requirements are tax exempt under Internal Revenue Code Section 501(c)(3).
Churches and Religious Organizations
Churches and religious organizations, like many other charitable organizations, may qualify for exemption from federal income tax under Section 501(c)(3).
Private Foundations
Every organization that qualifies for tax-exempt status under Section 501(c)(3) is classified as a private foundation unless it meets one of the exceptions listed in Section 509(a). Private foundations typically have a single major source of funding (usually gifts from one family or corporation rather than funding from many sources) and most have as their primary activity the making of grants to other charitable organizations and to individuals, rather than the direct operation of charitable programs.
Political Organizations
A political organization subject to Section 527 is a party, committee, association, fund or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function.
Other Nonprofits
Organizations that meet specified requirements may qualify for exemption under subsections other than 501(c)(3). These include social welfare organizations, civic leagues, social clubs, labor organizations and business leagues.
To get started, click the “Get Started” button below to download our tax organizer packet. You can return it to us, along with your tax documents, by uploading it to your client portal.