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You Have it in You: Start a Nonprofit;

Be a No Lack Person

Quit Saying I can’t and Say I Can!

By Chris Romero and Thomas R. Reich 

You have it in you to do whatever you truly believe in! You know who is behind you, the greatest power in the universe, you can do anything!

Last weekend I was inspired by a sermon delivered by the great Joel Osteen.   So much of it seemed fitting for those with the calling to start a nonprofit.  His words of vision and action were my inspiration for what follows:

Maybe you are up against a Business obstacle, but remind yourself, you have the knowledge, the talent and the

Question: Is now the time to start a nonprofit?

experience to hit those challenges head on, maybe now is the time to start a nonprofit business.

Quit saying “I can’t” and know that you can!  Any deal you can visualize, tell yourself you are a “No Lack Person.”  Tell yourself “These obstacles aren’t going to get in MY way” Tell yourself now is the time to do good, now is the time I am going to start a nonprofit!

CharityNetUSA makes the obstacles lighter; we make them a bump in the road.  See every adversity as being light and temporary.  You are ready for and equal to anything that comes your way and you will overcome every obstacle, now is the time to start a nonprofit.

We are here to help you start a nonprofit every step of the way

Your obstacles may have been facing you for years, but they can turn around now – obstacles are never Permanente.  You have seeds of greatness on the inside, you are a winner!

Brake out of your box; believe you can reach your goals.  Don’t set limits for your success, you can accomplish whatever you believe you can, you are a No Lack Doer, now is the time to start a nonprofit!

Don’t have a cheap narrow vision; it will limit your accomplishments.  Don’t wait for it to go on sale, create the competition that forces a sale, you can get what you deserve, you can make a difference.  Don’t be dependent on one sale, have a bigger vision, don’t settle for what is on sale, and settle for what brings you an abundance of success, now is the time to start a nonprofit.

Have the vision to start a nonprofit

You are full of talent, strength, creativity and vision, live your dreams, make them a reality.  You are a No Lack Person, and you will accomplish your dreams if you believe in yourself.  let us help, now is the time to start a nonprofit!

CharityNetUSA can help you every step of the way, whether helping establish your charity as a 501c3 or helping perfect every aspect of your plans, which will help you successfully start a nonprofit.

If you would like more information on the full range of services offered to Set up a Charity, Nonprofit or Foundation please contact CharityNetUSA by visiting www.CharityNetUSA.com or by calling, toll FREE 1.877.857.9002.  Please follow us on Twitter and Like us on Face Book to receive free daily tips and tricks as well as notification of our FREE Award Winning Webinar series!  Now is the time to start a nonprofit!

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After reading our most recent blog post, “An Overview of the Different Sections of 501c“, you may be interested in learning more about obtaining the coveted 501c3 tax exempt status for your non profit.  So, you are in luck because our next installment of the CharityNet USA Non Profit Webinar Series will review everything your non profit needs to know about obtaining 501c3 tax exempt status.  The details of the event are below, but don’t hesitate to leave us a few suggestions or questions you would like answered during the event in the comments section at the end of the post!

You are personally invited to spend some time with CharityNet USA and find out why obtaining 501c3 status is essential to the growth of your non profit organization’s projects and programs! Register Today!

Topics of Interest:

• Qualifications for 501c3 Status
• Steps to Obtaining Tax Exemption
• Staying in Compliance
• Benefits of 501c3 Status

Title: Obtaining 501c3 Status From The IRS
Date: Thursday, September 30th, 2010
Time: 3:00PM-4:00PM EST

Register Today! We hope to see you there!

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In order to understand the different sections of 501c you first must know what a 501 c is. The term 501 c is referring to Title 26, Section 501(c) of the United States Internal Revenue Code. This specific section allows for certain types of nonprofit organizations to be exempt from paying some federal taxes, which is why so many organizations pursue the 501 c status. Obtaining any 501 c status requires an application to be filled out and submitted to the IRS. You must also be able to provide the necessary supporting documentation needed to supplement your request. In order to become a tax exempt organization you must be incorporated within your state, just like any other corporation would be.

There are many different types of organizations that are recognized by the IRS under the code 501 c. There are 26 different types of 501 c organizations ranging from 501c1 through 501c28, with no 501c20 or 501c24. Each of these different numbers indicates a different type of organization or an organization with a specific purpose. The most common type of 501 c organizations is the 501c3. 501c3 nonprofit organizations are typically organized for Religious, Educational, Charitable or Scientific purposes. Most nonprofit organizations fall into this category. One additional benefit of having a 501c3 organization is that all donations made to the organization can be written off as a tax deduction for the donor.

Another common type of 501 c organization is the 501c4. These nonprofit organizations are generally civic leagues and other organizations organized and operated exclusively for the promotion of social welfare, or local associations of employees with membership limited to a designated company or people in a particular municipality or neighborhood, and with net earnings devoted exclusively to charitable, educational, or recreational purposes. Unlike 501c3 organizations, 501c4 organizations may lobby for legislation; they may also participate in political campaigns and elections, as long as campaigning is not the organization’s primary purpose. Contributions to 501c4 organizations are not deductible as charitable contributions. 501c4 organizations are not required to disclose their donors publicly. This aspect of the law has led to extensive use of the 501c4 provisions for organizations that are actively involved in lobbying, and has become controversial.

The tax exemption for 501c4 organizations applies to most of their operations, but contributions may be subject to gift tax, and income spent on political activities – generally the advocacy of a particular candidate in an election – is taxable.

Below is a list of the various types of 501 c organizations along with a brief description of the specific purpose of each.

• 501(c)(1) — Corporations Organized Under Act of Congress (including Federal Credit Unions)
• 501(c)(2) — Title Holding Corporation for Exempt Organization
• 501(c)(3) — Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations
• 501(c)(4) — Civic Leagues, Social Welfare Organizations, and Local Associations of Employees
• 501(c)(5) — Labor, Agricultural, and Horticultural Organizations
• 501(c)(6) — Business Leagues, Chambers of Commerce, Real Estate Boards, etc.
• 501(c)(7) — Social and Recreational Clubs
• 501(c)(8) — Fraternal Beneficiary Societies and Associations
• 501(c)(9) — Voluntary Employees Beneficiary Associations
• 501(c)(10) — Domestic Fraternal Societies and Associations
• 501(c)(11) — Teachers’ Retirement Fund Associations
• 501(c)(12) — Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies, Mutual or Cooperative Telephone Companies, etc.
• 501(c)(13) — Cemetery Companies
• 501(c)(14) — State-Chartered Credit Unions, Mutual Reserve Funds
• 501(c)(15) — Mutual Insurance Companies or Associations
• 501(c)(16) — Cooperative Organizations to Finance Crop Operations
• 501(c)(17) — Supplemental Unemployment Benefit Trusts
• 501(c)(18) — Employee Funded Pension Trust (created before June 25, 1959)
• 501(c)(19) — Post or Organization of Past or Present Members of the Armed Forces
• 501(c)(21) — Black lung Benefit Trusts
• 501(c)(22) — Withdrawal Liability Payment Fund
• 501(c)(23) — Veterans Organization (created before 1880)
• 501(c)(25) — Title Holding Corporations or Trusts with Multiple Parents
• 501(c)(26) — State-Sponsored Organization Providing Health Coverage for High-Risk Individuals
• 501(c)(27) — State-Sponsored Workers’ Compensation Reinsurance Organization
• 501(c)(28) — National Railroad Retirement Investment Trust

Many of these sections are for very specific activities and as a result are not commonly used. Some such as the 501c20 and 501c24 have been combined with other sections or done away with all together. With each different section come slightly different rules and regulations to be aware of. As always, it is a good idea to learn as much as possible about the specific rules before becoming involved with any type of 501 organizations.

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Find out how to Avoid Heavy Fines and Loss of 501c3 Tax Exemption in CharityNet USA’s Free Nonprofit Webcast!

You have waited months and finally  have received your letter of determination from the IRS awarding your nonprofit with 501c3 Tax Exempt status.  While this is a great milestone for your organization, it is important to remember receiving and maintaining your 501c3 status is not a simple “wham-bam-thank you-ma’am” deal.

In order to keep your tax exempt status, the IRS and State Governments require that specific federal returns and notices be filed annually.  Failing to file or filing incorrectly, could result in heavy fines that your organization cannot afford and possible loss of the status you have worked so intensely to achieve – your 50c13 tax exempt status!

We invite you to join us for a free webinar that will review the critical deadlines and many obstacles organizations face when attempting to stay in compliance with the IRS. This free one hour event will prove to be invaluable to your organization and its future success.

Topics of Discussion:

• Federal Compliance
• State Compliance
• Penalties and Revocation
• Common Compliance Issues

Join us for this live nonprofit webcast event! Register Today at: https://www2.gotomeeting.com/register/939385082

Have specific items you would like for us to touch on? Enter them in the comments section below!

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There are many benefits to being recognized by the IRS as a 501c3 nonprofit organization. One of the biggest benefits would be tax exemption from the IRS. Being exempt from paying taxes means that your organization will not have to pay federal taxes, and in many locations sales taxes and property taxes are also exempt.  Being tax exempt can save you a great deal of money over time, allowing you to focus more of your funding efforts towards actual programs and services.

501c3 recognition also has the ability to make your organization more credible in the eyes of the public and other entities within your community. After being approved by the IRS as a 501c3 organization you will have the ability to clearly state your 501c3 nonprofit status on all materials you distribute and any announcements made about your organization. This notifies any interested parties that you are a legitimate organization and have proven to the IRS that the work you are doing is serving the public.

Another major benefit to becoming a 501c3 nonprofit organization is having the ability to give tax deductions to individuals who make a donation to your organization. As a 501c3 organization all donations made, whether monetary or in-kind, can be claimed on that individual’s personal income taxes. This is very appealing for potential donors, specifically those who are interested in making large donations or contributions to your organization. Having 501c3 nonprofit status also makes it much easier to solicit donations. Many individuals and companies will not make contributions to organizations that are not recognized as 501c3 nonprofit organizations since they are unable to receive any benefit from their donations.  

Having 501c3 nonprofit status will also allow your organization to be eligible for many grants. These grants can be from both private foundations as well as the government. Most grant funding organizations require applicants to be recognized as a 501c3 before considering their grant proposal. Upon approval by the IRS your organization will be issued a letter showing confirmation of your approval. This letter will be required by most grant funding organizations when applying for a grant.

Other benefits include discounted postage rates as well as special mailing privileges for nonprofit organizations. The United States Postal Service provides opportunities for bulk mailing to nonprofit organizations, which is another method nonprofit organizations can save money. Finally, a 501c3 tax exempt organization could receive free or discounted rates from media outlets, e-mail services and newswires for announcements and press releases related to your organization. This can provide your organization with the opportunity to increase awareness of the activities you are holding as well as the work you are doing in the community. 

Receiving 501c3 nonprofit status from the IRS is typically a big turning point for many nonprofit organizations. But it did not come without much hard work, anxious waiting and possibly assistance from a professional nonprofit consultant.  While the benefits of becoming a 501c3 nonprofit are big, so is the amount of paperwork and package preparation.  Therefore, if your organization is seeking 501c3 status from the IRS it is encouraged to seek assistance to make sure the application is completed correctly and speedily.

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501c3 is one of the many IRS tax codes used for nonprofit organizations. The 501c3 specifically applies to organizations operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals. There are also other IRS codes for different types of nonprofit organizations; these organizations all have 501c status but are given different numbers to specify what type of activates they are involved in.

Once an organization has received 501c3 status it is then exempt from paying federal taxes. The government strictly regulates the activities of nonprofit organizations as a measure of insuring that their activities remain dedicated to exempt activities. One regulation the government institutes is at no time can any part of the organizations activities or the net earnings of the organization be used to benefit any director, officer, or any private individual associated with the organization. Also, steps must be taken to so that none of the organization’s officers or any private individuals benefit from the distribution of any assets owned by the organization (should the organization shut down or stop operating for any reason). In order to remain in compliance, a 501c3 nonprofit organization must file a 990 tax return form with the IRS every year. This form is used to display the financial activities of the organization over the course of the previous year.

One of the most desirable advantages of starting a 501c3 nonprofit organization is that donations made to the organization can be tax deductable. This makes soliciting donations easier for the organization because donors can claim the donations they make on their taxes. By allowing these donations to be tax deductable, the donors really are not losing any money by making donations and many donors would rather give their money to an organization or a cause that they believe rather than to the government.

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A Free Webinar About Why Obtaining 501c3 Tax Exempt Status is Necessary to Help your Organization Grow!

Are your donors able to make charitable contributions and receive a tax deduction?  Is your organization qualified to receive private and public grant money? Is your non profit saving money on lower postage rates on corporate mailings?

If the answer is “no” to the above questions, perhaps your non profit should take steps to obtain 501c3 status!  

The recognition of your organization as a 501c3 tax exempt non profit by the Internal Revenue Service (IRS) offers numerous advantages and is necessary to help your organization grow.  

We invite you to spend some invaluable time with CharityNet USA and find out why obtaining 501c3 status is essential to the growth of your organization’s projects and programs!

Topics of Interest:
•Qualifications
•Steps to Obtaining the Status
•Staying in Compliance

Join us for a free nonprofit webinar July 1st, 2010 from 3:00 P.M. – 4:00 P.M. (EST) & learn how to gain the numerous advantages your non profit organization deserves!

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When the IRS examines a 501(c)(3) application, one of the major issues they are looking for is any potential conflict that exists. This conflict of interest could exist between the nonprofit organization and its board members, directors, trustees, or key employees. In my experience working with clients who are applying for their 501(c)(3) status, I have seen many situations arise in which a conflict of interest presents itself and may jeopardize the approval of the application. Even if this issue does pass the initial review completed by the IRS, if the conflict of interest is not addressed and dealt with appropriately, it could jeopardize future compliance with the IRS as well as damage the organization’s reputation; which, in turn, will damage funding.

Conflicts of interest in nonprofit organizations must be addressed very seriously whether they seem small or large. How an organization manages conflicts of interest that arise will determine whether an organization is frequently involved in legal problems and public scandals or actually accomplishing the organization’s mission. Conflicts of interest can arise whenever an individual, who has authority or decision-making power in a nonprofit organization, will privately benefit from a transaction, agreement, or activity of the organization.

One simple example of a conflict of interest is a board member with voting rights who will also be employed by the organization for other duties. The board of directors are responsible for reviewing and approving a nonprofit organization’s budget which would include the salaries and compensation of employees and independent contractors. If one of your board members will receive compensation then an obvious conflict arises if this board member has the authority to set his or her compensation. There are multiple ways to deal with this issue, some more extreme than others. For example, one solution would be to remove the board member from the board of directors altogether. However, such as drastic step does not need to be taken. A typical solution to such an issue would be to have this board member abstain from voting on his or her’s individual compensation. This in turn allows the board member to remain on the board and receive compensation for their duties as an employee, while avoiding a dangerous conflict. Although this issue may seem obvious, many board members do not see some of the more discrete conflicts of interests that arise throughout the lifecycle of their organization.

A useful way to discover if a conflict of interest exists during a decision-making process is to check and see if a decision will benefit any of your director. Of course, this will require all of your directors to be upfront and honest about any aspect of the decision that may benefit them.

Another asset to your organization is your conflict of interest policy. When you organization applies for its 501(c)(3) tax exempt status, the IRS requests that you adopt a conflict of interest policy and submit it with your application. However, you should always remember that this policy serves as a guideline and cannot replace careful consideration and an ethical approach to any decision made by a board. Each member of your Board should be required to acknowledge acceptance of the conflict of interest policy on an annual basis, and the policy should be reviewed at the initiation of all Board meetings. This will serve as a key reminder to every decision maker about their responsibility to disclose and avoid any conflicts of interest.

Nonprofit board members and executives must not only be able to recognize potential conflicts of interest, but they must determine when these conflicts present areas of concern and what to do about them. This can be a great responsibility and should be taken seriously – your organization’s tax exempt status and your future funding depend on it.

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A Webinar about why Obtaining 501c3 Tax Exempt Status is Necessary to Help your Organization Grow!

Are your donors able to make charitable contributions and receive a tax deduction?  Is your organization qualified to receive private and public grant money? Is your non profit saving money on lower postage rates on corporate mailings?

If the answer is “no” to the above questions, perhaps your non profit should take steps to obtain 501c3 status!  

The recognition of your organization as a 501c3 tax exempt non profit by the Internal Revenue Service (IRS) offers numerous advantages and is necessary to help your organization grow.  

We invite you to spend some invaluable time with CharityNet USA and find out why obtaining 501c3 status is essential to the growth of your organization’s projects and programs!

Topics of Interest:
•Qualifications
•Steps to Obtaining the Status
•Staying in Compliance

Learn how to gain the numerous advantages your non profit organization deserves by attending our webinar on Thursday, April 29, 2010 from  3:00 p.m. – 4:00 p.m. (EST).