You want tax-exempt status? You have to earn it!

C&G’s tip of the week:

You want tax-exempt status? You have to earn it!

You have been thinking about starting that non-profit for quite some time. Now the time has come- you are ready to move forward with getting the organization started and then filing for tax-exempt status (also known as 501(c)(3) status) with the IRS. You can do it yourself, right? Sure. You’re clearly smart enough. Here comes the “BUT”. There are a number of requirements the IRS has for you to qualify that you may not be aware of. Many people will hit the ground running, file their paperwork with the State, find some generic bylaws, and then think they are all set. It’s not quite that simple. There are a number of factors that can cause you to run into unnecessary road blocks on your path to tax-exempt status.

For example, certain language may not be contained in your organizing and governing documents. This presents a problem. The IRS can and will actually reject your application. What about if the purposes for which you are organized do qualify you for tax-exempt status but the way you are articulating your programming is not consistent? How about if certain policies and practices are not in place? You will find yourself experiencing setbacks in your timeline, at best; worst case scenario- a denial. The good news is that you do not have to do this alone. It’s your dream, your vision- let us help you bring it to life! Contact C&G to assist you today!

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