501c3 Tax Exemption Services

Transcription

1 Nonprofit Services & Solutions 501c3 Tax Exemption Services This Packet Includes: Services Overview Package Options & Pricing FAQ s About Us

2 Service Overview 501c3 Tax Exempt Status Whether you are just beginning your nonprofit or need help completing the final steps, CharityNet USA will prepare all of the necessary documentation on the federal, as well as state level, to secure your organization s tax exempt status from the IRS. The recognition of your organization as a 501c3 tax exempt nonprofit by the Internal Revenue Service (IRS) offers numerous advantages and is necessary to help your organization grow. The primary benefits of 501c3 status include: Donors can make charitable contributions to your organization and receive a tax deduction. Many times donors will refuse to offer contributions if they will not receive a tax deduction. Your organization will be qualified to receive private and public grant money. You can save money on lower postage rates on corporate mailings. If you are looking to form a nonprofit, you will need to go through nonprofit registration and nonprofit filing. Here at CharityNet USA, we can not only guide you through the process, we can also aid you in completing all necessary 501c3 forms to quickly get the tax exempt status so you can begin to receive donations. In addition, if you do not already have your financials, bylaws, articles of incorporation, and similar forms we can complete these for you as well! Applying for the 501c3 status can be both tedious and complex. If an inexperienced individual attempts to complete the 501c3 application, and does it incorrectly, it can add months of delays to your approval from the IRS. Most individuals who choose to take advantage of our 501c3 services, through our educated and experienced staff, benefit from a faster approval by having the 501c3 application prepared quickly and correctly the first time. We Guarantee your Approval or your Money Back! The prices indicated above only include preparation fees. Based upon your financials, the IRS filing fee will be either $400 or $850. State filing fees will vary based on your particular state.

3 501c3 Packages 501c3 Basic Package 501c3 A LA Carte Options Total $ PP-2 $ Save $50 501(c)(3) & Inc. Package Total $ PP-2 $ Save $ (c)(3) Package Plus State or Sales Tax Exempt Board Biographies Shipping and Handling Fundraising Kit $ $ $ $ $ Total $ PP-3 $ Save $ (c)(3) Package Plus with Book Sample Documents Promotions & Options *Add corporate sponsorship program for only $499 (Save $100) *Add another service package ($499+) Get $100 Off or a Free Starter Website *Website does not include domain name, hosting or maintenance. *Shipping not included. Total $ PP-3 $253 Save $100

4 501c3 EZ Packages 501c3 EZ Basic Package 501c3 A LA Carte Options Total $ (c)(3) EZ Inc. Package Total $ (c)(3) EZ - Package Plus Conflict of Interest Policy State or Sales Tax Exempt Board Biographies Shipping and Handling Fundraising Kit $ $ $ $ $ Promotions & Options *Add corporate sponsorship program for only $499 (Save $100) Total $ (c)(3) Package Plus W/Book Sample Documents *Add another service package ($499+) Get $100 Off or a Free Starter Website *Website does not include domain name, hosting or maintenance. *Shipping not included. Total $ 539

5 Frequently Asked Questions What form is used to apply for 501(c)(3) tax exempt status? Form 1023 is the standard form used to apply for exemption under IRC 501(c)(3). Some small organizations may be eligible to use the streamlined application, form 1023-EZ. What types of organizations will qualify for 501(c)(3) tax exempt status? Religious, Charitable, Scientific, Testing for public safety, Literary, Educational, Fostering Amateur Sports, and Prevention of cruelty to children or animals. What organizations are eligible for the streamlined 1023-EZ application process? Generally, small organizations whose GROSS annual receipts will not exceed $50,000 per year., including all cash and non-cash donation. As a rule, this will be organizations planning to operate with a limited scope, and without a paid staff or commercial facility. What organizations are excluded from using the streamlined 1023-EZ application process? Most commonly, churches, schools, hospitals, medical and/or mental health clinics, medical research organizations, organizations providing credit counseling, financial literacy training, supporting organizations, organizations converting from a LLC or other for-profit formation, and many organizations who have had a previous exemption revoked are not eligible to use the EZ version of Form Other less common exclusions also apply. Can the 1023 application be filed online? The new Form 1023-EZ is available for filing only online via Pay.gov; the standard application must be filed in hard copy via mail. How long will the IRS take to make a determination? On average the IRS takes about 6 months from the time they receive the application package, however there are exceptions. The IRS has not yet released information on 1023-EZ processing times; however it is anticipated they will process more quickly than standard applications? What are? are the organizing document for the company. They state the organization s specific purpose, incorporators, etc. Outline will vary from state to state. What are? are internal operating rules for an organization. They state who should do what, how they should do it, when they should do it, etc. Basic nonprofit template discusses board duties, elections, memberships, and meetings, etc.

6 Frequently Asked Questions Continued What does the Board of Directors do? The Board is the governing body of the organization. In most nonprofits the board does not participate in the daily operations of the organization. They must approve major organizational decisions, such as budget, salaries, amending articles or bylaws, etc. These individuals are there to ensure that the organization has the public s interest at heart, and that all operations are done appropriately. Board functions must be offered on a volunteer basis. Board members may, however, be compensated for any out of pocket expenses. Sometimes, members of the board may also hold a day to day position in the organization. This is a separate position from that which they hold on the board. An individual who happens to be on the board may receive compensation for their daily role in the organization. How many people do I need on my Board? 501 Board Requirements: Must have at least 3 individuals, the majority of which are not related or receiving any compensation. What types of financials are necessary for the standard application? If your organization has been operational for 5 years or more, then actual financial information for the last 5 years is required. If the organization has been in operation for less than 4 years, then we must have the actual financial information for the periods of operation, and projected financials to include a total of 4 years of information. For a start-up organization, a 3 year financial projection is required. What is Charitable Organization Registration? Most states require nonprofit organizations to register with the Attorney General or Department of Consumer Services before soliciting donations from the public. This ensures that all organizations requesting donations are in fact legitimate. If my 501(c)(3) is approved do I still have to pay state income tax and sales tax? This varies by state. Some states will automatically exempt organizations that have been deemed exempt at the federal level. Other states require organizations to apply separately for state level exemptions. What filings are required each year once I m approved? To remain in compliance the organization must submit a form 990 each year. This form (which comes in a variety of formats depending on the organization s specific financial situation) must be submitted by the 15 th day of the 5 th month following the end of the fiscal year. In addition, a variety of annual filings may be required by your state.

7 About Us Our Mission Founded in 2004 and headquartered in Orlando, FL, CharityNet USA serves as a one-stop resource center for startup, small and mid-size nonprofit organizations. Expanding from a one product, one owner company in 2004, to currently offering over thirty products and services and staffing over twenty professionals, CharityNet USA understands what it takes to grow a business from the ground up. Now, we are leaders in the industry, with a satisfied client base of over 15,000 and growing. Today, nonprofit entrepreneurs looking to start or grow their own organization turn to us for assistance with their business needs. From 501c3 tax exempt services, strategic plan development and grant writing to accounting, web design, marketing and everything in between, we work to get our clients the most out of their organization. At CharityNet USA, our goal is to help organizations succeed, even after their services are completed. In addition to the featured business services, we offer free tools and resources to provide ongoing support for every client. These include: a web directory, free marketing reviews, a listing of service needs and informational articles and tips; just to name a few. Our company is all encompassing. We have a proven business model that has fostered annual growth within the organization. We believe our product quality, commitment to excellent customer service and competitive pricing have enabled us to do this, even during a recession. We consistently strive to improve our product line and package structures to better meet the revolving needs of our clients. Our Brands Since our founding in 2004, we have discovered the specific attention needed by for profit and other nonprofit and religious organizations. The CharityNet USA brands: BizCentral USA, ChurchNet USA and HelpNet USA, provides individuals in the for-profit and religious sectors with the specialized assistance needed to form successful and sustainable businesses and organizations. BizCentral USA: A for profit subsidiary of CharityNet USA serving as the nation s number one provider of small business startup services. ChurchNet USA: A nonprofit subsidiary of CharityNet USA serving as an online church and ministry resource center. HelpNet USA: An online resource community that brings together individuals and nonprofit