Maintaining Your Nonprofit’s 501(c)(3) Tax-Exempt Status
A nonprofit’s 501(c)(3) tax-exempt status is one of its most precious assets; it: encourages giving by allowing donors to make tax-deductible donations; maximizes funds available to support the mission by exempting most income from taxes; facilitates grants from foundations and government funders; and enhances credibility with the public and donors. Make sure your nonprofit doesn’t inadvertently lose its (c)(3) status by not following the rules. This session will explain in plain English (not legalese!) some of the core responsibilities, including: filing annual IRS returns; ensuring that activities further your tax-exempt purposes and benefit the public rather than private interests; avoiding impermissible financial benefits to insiders; limiting lobbying activities; avoiding political campaign activities; limiting, and paying taxes on, unrelated business income; recordkeeping; and maintaining public charity status.