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Nonprofit Fundraising Using Social Media

Nonprofit Marketing Professional Chris Romero — Thu, 02 Feb 2012 21:54:58 +0000

Nonprofit Fundraising Using Social Media:

Basic rules of engagement

By Thomas R. Reich and Chris Romero

This is the year to imporve you skills with nonprofit fundraising with social media

Nonprofit fundraising using social media can be a lot more fun than you may think! We are about to cover some fun, free projects your organization can try right out of this blog. Let us know how they work!

Today, in 2012, nonprofit fundraising using social media has gotten both easier and way more complicated! If you remember the basic rules of engagement, then nonprofit fundraising using social media can be a smooth running snap!

if you cause is the California Condor, nonprofit fundraising using social media lets you brand it that way!

One of the basic rules of engagement for nonprofit fundraising using social media is to come up with an event, because donation or item sales drive that is consistent with your mission statement. If you are a charity designed to feed the homeless, a food drive and donation drive is appropriate. If you an organization designed to save the California Condor, why not try selling logo embossed peanut brittle?

Letting the donor have something physical for their donation is a key method used today in nonprofit fundraising using social media, it gives the donor a feeling of value and lets them walk away with something that shows others they donated. Another advantage of an item for a donation, is that item is advertising to everyone that sees it, the donors family and friends, if they take the item back to work who knows how many will see it.

Another great fundraiser is donations for an event, dinner, concert or even a car wash. If it is to be a donation for a dinner or a concert, be very sure you have the funding to pull off the event even if you do not get the numbers of attendees you hoped for. Concert venues want paid, lighting and sound must be paid, so consult with professionals before you get in over your head.

Nonprofit fundraising using social media can increase results 3 fold!

Back to the car wash idea, you have seen them many times, but we have a new twist. Think in terms of old marketing first, sell tickets to get a car wash, this way you know in advance of the event that you will have money coming in and a successful event before it happens. But it gets better, some who buy tickets will forget to come, and others that don’t want to let some kids wash their new car will buy a ticket to support your cause, but never use it! Finally the event will draw the donors that see the car wash as a spur of the moment thing just like any other car wash anyway. Can you see how nonprofit fundraising useing social media could increase this method even more?

Same rule applies for bake sales, thrift sales, arts and craft sales and raffles. But where do the social media come in. Nonprofit fundraising useing social media is simple if you follow the basic rules of engagement for a nonprofit event, and then talk about it constantly on you twitter feed, Facebook and LinkedIn to boost your exposure.

Basic Rules of Engagement:

1) Design a realistic and achievable fundraising idea, make sure you have the funds to cover any eventuality and that your price point is affordable to your core donor audience

2) Have someone who is dedicated to the successful planning, running and execution of the event or drive, this is espicially critical for nonprofit fundraising using social media. If you have an experienced person on staff or a volunteer who is reliable and known to complete tasks properly

nonprofit fundraising using social media puts you in the web

great, if not there are professionals who can organize and execute it for you at a reasonable cost.

3) Set clear and attainable goals; don’t make the drive to raise a million dollars if you are selling 5 dollar car wash tickets.

4) Clarify the purpose of the event or drive, what are the funds going to benefit, if it is to benifit the general funds of the charity or foundation, great. If, however, it is to benifit the California Condor, then you might be able to get other organizations with similar goals to join in through the internet, remember nonprofit fundraising using social media offers a whole world of new options for partnerships in humanitarian goals.

5) Use social media and traditional methods to market market market! Nonprofit fundraising useing social media can be tied in with traditional methods to great effect; think about having a ticket sales booth at a cretin location and then announce it through social media as well as the way you normally do it, you will have the potential of many more coming by!

these are a key part of success in nonprofit fundraising using social media

6) Use social media to publicize the event, blog about the cause and push the effect of a donation or participation in the drive. Nonprofit fundraising useing social media expands your world, expands you influence and adds to the good you can do!

Let’s say your event is a Spaghetti Dinner, we will use that as our final example. Traditional marketing says you sell tickets to friends church members working with you and maybe at the local grocery store, using a table with a hand

Think differently

written sign.

Let’s look at how nonprofit fundraising using social media could work. In your announcements newsletter, you begin talking about the amazing spaghetti dinner coming soon, and that last year it sold out so buy tickets early. Then you begin to Tweet the event and list it on Facebook and LinkedIn, now remember not just your organization social media, but the Facebook and twitter of every member, volunteer and booster of your organization.

Try a different approach; nonprofit fundraising using social media

Next, in your social cause’s blog you put a story about the cause followed by an announcement of the event. Finally you put out a press release, and all social media coverage on the unique recipe of the spaghetti sauce. Make sure there are comments listed on blogs and tweet responses expressing agreement at the unique good flavor of the spaghetti!

Can you see how this could cause a “viral” effect, because many people you never knew existed will now come and be exposed to your cause! This is how nonprofit fundraising using social media works.

If this sounds interesting, but you still want to learn more, join the staff of CharityNetUSA for a totally free seminar on Wednesday February 8, 2012. We at CharityNetUSA have helped a myriad of organizations with nonprofit fundraising using social media as well as all forms of business services. In fact we have helped over 12,000 organizations over the years, and we can help you too. We have a nonprofit webinar free on many topics every Wednesday and a small business webinar every Thursday also totally free!

Sing up now, it’s free and it is packed full of great information on fundraising in general and nonprofit fundraising using social media as well, remember as always this is not an infomercial, this is a true free webinar.

If you would like more information on the full range of services offered to set up and service a charity, foundation or church 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!

Modern Marketing and Nonprofits

Nonprofit Marketing Professional Chris Romero — Thu, 02 Feb 2012 17:19:02 +0000

Modern Marketing and Nonprofits

by Thomas R. Reich and Chris Romero

The Phoenicians invented modern marketing and nonprofits!

In today’s competitive nonprofit environment, modern marketing and nonprofits is essential. The first step in modern marketing and nonprofits is the same as it has been since the Phoenicians, develop a working marketing plan!

A marketing plan lays out your strategy and direction in the world of modern marketing and nonprofits. The first step is to secure a solid corporate identity, with a common look, color and design throughout all aspects of anything from your company that is seen by the public or another business. A complete corporate identity should include:

1) Corporate Branding and Logo Design

One consistent color pattern
Nonprofit strategy is part of modern marketing and nonprofitss.
Make sure logo is unique, distinctive and very reproducible to all media both media and print matter

2) Brochures – containing the Logo and the color and consistent design which is to become your corporate identity

3) Business cards and electronic signature – should also follow this developing pattern of color and design

4) Press release blanks – should carry the corporate identity

5) Newsletters with the look and feel of your corporate identity from front to back

CharityNetUSA can help with modern marketing and nonprofits

A company like CharityNetUSA can assist you in this type of design, inexpensively, and can get you on the road to modern marketing and nonprofits. However you create this “Corporate Identity” it must be of prime concern. Today, a business identity is your life’s blood, the key to modern marketing for small business.

The second step is to develop an integrated digital identity. In today’s nonprofit world, the internet is not only reality, but is indispensible to a modern marketing and nonprofit plan! You have, at this point, created a consistent corporate identity, logo, overall design and color scheme.

You must now carry this “Corporate Identity” into a “Digital Identity”, and do it correctly in order to survive

The internet must be part of modern marketing and nonprofits

modern marketing and nonprofits:

1) Create a website consistent with logo, overall design and colors to match your already developed corporate identity

2) Create a blog with consistent branding

3) Customize you Twitter with consistent branding

4) Customize your Facebook with consistent branding and create a fan page with a look consistent with your web home page

5) Customize your LinkedIn account; create a grope membership list consistent with your nonprofit type.

There are so many aspects to modern marketing and nonprofits and each facet has books written concerning all the things you can do to maximize your exposure. What I hope you take away from this writing, is that everything your nonprofit does must be with a consistent look. Today, due to the internet culture, you can have the look and feel of a much larger corporation, if you plan and execute your corporate identity correctly.

Having a great Marketing Plan is essential in modern marketing and nonprofits

CharityNetUSA has been helping nonprofits plan and execute corporate identity, and all aspects of small business operations for many years. CharityNetUSA has helped over 12,000 small nonprofits just like yours and we can help you with your modern marketing and nonprofits today!

Join us for a free webinar which will cover “Key Marketing Ideas” this coming Thursday, February 9, 2012. As always, this is not an infomercial, but a true free full hour of pure information. Want to know more about modern

marketing and nonprofits, we will see you there!

If you would like more information on the full range of services offered to set up and service a Small Business please contact us by visiting CharityNetUSA 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!

You Have it in You: Start a Nonprofit

Nonprofit Marketing Professional Chris Romero — Thu, 19 Jan 2012 22:13:17 +0000

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!

Twitter for Nonprofits Tips and Tricks

Nonprofit Marketing Professional Chris Romero — Tue, 17 Jan 2012 19:36:14 +0000

Twitter for Nonprofits Tips and Tricks:

An Amazing Search and Free Nonprofit Tool – Twitter for Nonprofits

For years you have heard Twitter, Twitter, Twitter, and SEO this and Social Media that. You have heard that Twitter for Nonprofits is great and saves time and money, but what can Twitter for Nonprofits do for you, something that shows real results for Philanthropy.

With so many options in the internet jungle, Twitter for Nonprofits is one that will get your organization seen.

You finally figured,” OK we will Set up a Twitter account“, you built a nice home page and gathered followers, now what? At first look Twitter for Nonprofits is just a Social Media Network, a short concise social messaging system. I am about to show you that Twitter for Nonprofit

Twitter for Nonprofits is an amazing Tool

is a vast FREE Nonprofit Business Tool.

Let’s look at two ways Twitter can assist you and help bring you donations and volunteers, all free! Sound like a Twitter for Nonprofit Tool you want to hear more about, read on!

When was the last time you searched a specific topic or question on Google, Bing or Yahoo and actually got the perfect answer without finding advertising for virtually anything, most not even related to your search; I’m waiting??

Twitter is an amazing search tool, since Twitter has no advertising involved in the search process; you are more likely to receive tangible results to your query.

Here are some tips and tricks to get tangible search results. Using this Fantastic Tool, Twitter for Nonprofits

becomes more useful!

Here is a step-by-step guide:

1) Go to your Twitter Home Page

Effective Questions On Twitter for Nonprofit is a great Tool

2) Click on the search box

3) Type in a short concise question (Example; Do Ask “How do I Facebook” Don’t Ask “How do I delete a like on Facebook”) Simple is best

4) The results bring up a long list of Tweets

The Results cover many topics but in my search I wanted to know how to delete a person from my Facebook page. 3 Tweets from the top said “New question and answer, how do I delete one person from Facebook highlights section. This sentence was followed by a link, I clicked it and was lead not to an advertisement for web services, but right to a list of questions and answers about Facebook, my answer was there.

For the Fun of it tweet your own name or that of your business. I “Twitter Searched” Thomas R. Reich and got some interesting results. This is another Twitter for Nonprofits Tool to see if others are Tweeting about your charity, or about you, and again it is always free to Tweet!

The point is you will get actual results from Twitter users like you. The results may not be what you wanted, but they are honest, not influenced by pay-per-click structures that haunt the big search engines. You never see banner ads on Twitter, just pure results, from real potential customers.

Twitter for Nonprofit searches are not for sale to advertisers making it a great Tool for those wishing to answer a question.

Now, try it, play around with different searches and ask yourself; “What have I learned about a FREE Twitter for Nonprofit Tools that can help my business?”

1) Twitter is an alternative search tool to the big search engines

Asking Questions and giving Answers can be an effective Twitter for Nonprofits Tool

2) Answers are usually contained in links with Twitter

3) The new Twitter accounts I am seeing have tweets that are answers to specific questions.

4) Did I just learn a new trick, a Twitter for Nonprofits Tool to make my own tweets more broadly read?

5) Now Create some answer Tweets of your own, in your area of expertise!

We, here at CharityNetUSA are always looking for ways to help our friends. When we find ways to make your Charity, Nonprofit or Foundation run more smoothly, we all benefit. Help us help you help others, leave suggestions for topics of discussion below. Remember, CharityNetUSA is still asking for topic suggestions for our 2012 webinar series, and we have gotten some great suggestions so far.

If you would like more information on the full range of services offered to set up and service a Charity, Nonprofit or Foundation please contact:

Nonprofit Tool Center Nonprofit Resource Center

CharityNetUSA by visiting CharityNet USA or by calling, toll FREE 1.877.857.9002. Please follow us on Twitter and Like us on Facebook to receive free daily tips and tricks as well as notification of our FREE Award Winning Webinar series and more information on Twitter for Nonprofits!

Filling Out Grant Applications

Nonprofit Marketing Professional Chris Romero — Fri, 18 Nov 2011 14:48:19 +0000

Filling out Grant Applications

One of the best ways for nonprofit organizations to acquire the capital funding necessary to operate their programs is to solicit for nonprofit grants. Nonprofit grants usually are given to organizations from the local, state or federal government agencies or private organizations, and depend on the proper methiod of filling out grant applications. Many nonprofit organizations are great at fundraising and soliciting for donations but for whatever reason they have not ventured into sourcing funding from nonprofit grants. When soliciting for a nonprofit grant from either a government agency or private organization, you will need to create a grant proposal, Filling out Grant Applications. The grant proposal will introduce your organization to the positional funding source, give them a clear understanding of your organization’s purpose and give a decryption of your organization’s planned programs and specific objectives. It will also provide a clear description of your organization’s purposed budget, your specific qualifications, and a conclusion wrapping up all of the information. Below you will see an outline of a nonprofit grant proposal.

Cover Letter (one page)

Provide a clear, concise overview of the organization, purpose and reason for and amount of the funding request while fillint out the grant applications.

A Full Proposal includes the following proposal sections: Executive Summary, Introduction (Organizational Background), Problem Statement (Need Statement), Objectives, Methodology,
Evaluation, Sustainability, Budget and an Appendix.
Executive Summary (1-2 Pages)

This summary is the most important component of your nonprofit grant proposal. Summarize all of the key information, when filling out grant applications, and convince the grantmaker to consider your proposal for funding.

Problem Statement (3-4 Pages)
(Needs Assessment)

Statistically document the specific situation, opportunity, problem, issue, and/or need, existing in the community your proposal addresses.

Program Goals and Objectives (1 – 2 pages)

Describe the outcome of the grant in measurable terms; including the proposed project outcome and accomplishments when filling out grant applications.

Methodology (4 + Pages)

Describe the process to be used to achieve the outcome and accomplishments.

Evaluation (1 – 2 Pages)

Explain how you will measure the effectiveness of your activities when filling out grant applications.

Sustainability (1-2 Pages)

Determine the long term financing of the program, after the initial funding period has concluded.

Budget

When filling out grant applications, clearly describe costs to be met by the funder and all other funding sources; outline both administrative and program costs.

Appendix

IRS501(c)(3) letter of tax exemption determination

Your organization’s most recent annual report

A list of your Board of Directors and Trustees, their board titles, their contact information, qualifications, and affiliations

Your organization’s most recent financial audit (if unavailable, please submit the last two years of financial statements or your most recent Form 990)

A list of foundation, corporate, and major individual support (including givers name, address, amount donated, and date donated) with the amount that was given for the last fiscal year.

A list of foundation, corporate, and major individual donations (including givers name, address, amount donated, and date donated) for the current fiscal year.

A Personnel Chart which shows the employee, their staff position, their work duties, their qualifications, their hours per week, and their yearly salary.

Program or organization brochure

Letters of support and/or recommendation from influential members of the community.

Project Timeline

For specific projects, include separate budgets for the general operating and the special project. Show income and expenses in columnar form (according to general accounting/bookkeeping principles).

Hopefully this article will allow your organization to add a new funding source to the fundraising, donations, and soliciting that you are currently undertaking. When filling out grant applications be sure that your grant proposal clearly introduces your organization to the positional funding source, gives them a clear understanding of your organization’s purpose, and provides a description of your organization’s planned programs and specific objectives. It should also provide a clear description of your organization’s proposed budget, your specific qualifications, and a conclusion wraps up all of the information.

There is an easier way, Grant funding operations coordination by CharityNetUSA. There are costs associated with this, but probably much less than the cost of the time involved with you and your staff generating and preparing, filling out grant applications and the complicated package required by the grant provider. And that is only one grant proposal, what if you could work with an organization that has prepared hundreds if not thousands of non-profit grant proposals for similar organizations? The savings in associated costs of filling out grant applications due to the experience of such an organization as CherityNetUSA.com and time it may save your organization could be substantial. The additional contacts for similar grant filings could make it well worthwhile to discuss your particular non-profit grant needs with a representative at CharityNetUSA.com and could be the difference between securing the funding and spinning your wheels.

As with any award, Grants are never 100% assured by any applicant, but with the help of a long established company which deals primarily in the area of Non-profit Business complexities to help in filling out grant applications, your odds of securing a grant is naturally greatly increased. In today’s market any edge is important, and CharityNetUSA.com can be just the edge you need!

These are the keys to filling out grant applications, if you have questions we are here for you:

If you would like more information on filling out Grant Applications and the full range of services offered to the nonprofit community please contact CharityNetUSA by visiting www.CharityNetUSA.com or call 1.877.857.9002

Are You Ready to Start Your Nonprofit? Let's Get Started!

Andy — Tue, 12 Oct 2010 13:54:07 +0000

You are ready to start a non profit organization, but you are not sure where to begin. The process can be very overwhelming and confusing if you are not properly prepared and do not have quality support. Fortunately there are many places you can go for help and it is typically in your best interest to take advantage of these non profit resources as they can make the process much smoother and less stressful.

The first step in starting a non profit organization is deciding exactly what it is that you want to do. There are many types of organizations that fall under the IRS’s criteria for a non profit, it is very important that you decide exactly what area or areas you would like your organization to focus on. In many cases it is better to start small and work towards a larger goal. Taking on too much at one time can spread your non profit resources thin, making your organization unproductive and ultimately leading to failure.

After you have come to a conclusion as to what type of organization you would like to start as well as what need or problem within the community you will be addressing, you are ready to draft a mission statement. Your mission statement is, at its heart, a snapshot of what your organization is and what it is trying to accomplish stated in one or two sentences. Your mission statement should grab the attention of people and make it clear what your organization does. A mission statement is very important because you will use it on a majority of the material you distribute for your organization.

The next critical step in starting your non profit would be to assemble a board of directors. The IRS requires that all organizations have a minimum of three people on the board. You must also be conscious to make sure that if there are any outside relationships (e.g. family or business) that they make up less than half of the board positions. It is also important to have a diverse group of people serving on your organization’s board that will be able to contribute insight from multiple perspectives. A strong and credible board of directors will, typically, translate into a strong and credible organization, which is very important to the future success of your organization.

Once you have successfully navigated these hurdles, you are ready to begin filing and drafting paperwork. The first thing that needs to be done is becoming incorporated in your state. This is what gets you recognized as a legal organization. When you are incorporating your organization, make sure to include the two clauses (purpose and dissolution) which the IRS requires to be in your organizational documents. After incorporation you can obtain an employer identification number (EIN or Federal ID), as well as begin drafting bylaws, creating a budget and putting in place record-keeping and accounting systems. While having these systems in place is not required by the IRS, it does give your organization the tools necessary to build a strong base and create a stronger organization moving forward.

After the state has approved your incorporation paperwork and you have created all the necessary supporting documents you are ready to file the 1023 application, which is what the IRS uses for organizations applying for 501c3 status. Once you have completed this application and submitted it to the IRS the hardest part begins – waiting. The IRS can take anywhere from three to six months to approve your application, but once they have you are an official 501c3 tax exempt organization. After 501c3 approval you should look into getting registered as a charity and filing your state tax exemption paperwork. Both of these are done on the state level, so check with your state to see exactly what you need in your specific state.

Free Upcoming Webcast: What's your Status?

Nonprofit Marketing Professional Chris Romero — Wed, 22 Sep 2010 21:29:01 +0000

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!

We invite you to spend a valuable hour 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 for 501c3 Status
Steps to Obtaining Tax Exemption
Staying in Compliance
Benefits of 501c3 Status

Learn how to gain the numerous advantages your non profit organization deserves!

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

An Overview of the Different Sections of 501 c

Andy — Tue, 14 Sep 2010 16:18:13 +0000

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.

Free Nonprofit Webcast: Is your Nonprofit in Compliance with the IRS?

Nonprofit Marketing Professional Chris Romero — Thu, 09 Sep 2010 21:03:57 +0000

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!

Sneak Peek at the CharityNet "Pay it Forward" Nonprofit Contest!

Nonprofit Marketing Professional Chris Romero — Mon, 30 Aug 2010 17:50:41 +0000

Share how your Organization Inspires others for a Chance to Win $5,000 in Nonprofit Services!

We have been working really hard lately putting together an awesome contest for nonprofit organizations nationwide! Now with just a few days left before the official launch we would like to give you a sneak peek of what is coming. The CharityNet USA “Pay it Forward” Nonprofit Contest officially begins this Wednesday, 9/1/2010. Nonprofit organizations across the nation can then enter to win up to $5,000 in nonprofit services from CharityNet USA by simply submitting a short video entry and persuading the public to vote for them! Check out more details below by watching the CharityNet “Pay it Forward” Contest Video, or visit the nonprofit contest landing page at http://www.charitynetusa.com/payitforward.php.

“Pay it Forward” is the idea that a simple act of kindness can change the world and we believe that Nonprofit organizations all across the nation have done just that!

We commend these acts of generosity; and therefore, we want to pay it forward to you with the CharityNet USA “Pay it Forward” Nonprofit Contest.

This is your organization’s chance to win up to $5,000 in nonprofit services! It is your time to shine and your chance to win the valuable services you need to grow your nonprofit and continue paying it forward!