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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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Join us for a free nonprofit webinar where we will discuss Ideas to Start Building a Solid Fundraising Base!

The average revenue major fundraising events produce is between $10,000 – $20,000 or more per event.  Are your organization’s fundraising events generating near this amount?

If not, they are probably lacking creativity, poorly planned and not positioned to reach your target audiences.  Succumbing to these mistakes can leave your pockets empty and your events prone to failure.

We invite you to spend some valuable time with CharityNet USA, and take a look at a few creative fundraising ideas that can help you find the funds to invest in the essential fundamentals you need and build community awareness of your organization.

Topics of Interest:
•The basic fundamental of fundraising
•5 creative and innovative fundraising event
•Developing the fundraising plans
•Measuring your event’s success

Join us for a FREE nonprofit webinar August 26th, 2010 from 3:00 p.m. – 4:00 p.m. and Learn how to ensure your nonprofit organization’s growth through fun and effective fundraising!

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A FREE Nonprofit Webinar: Getting your Organization on the Strategic Path to Success!

What is your organization going to accomplish this year?
How will your organization grow?
What are the steps needed to propel your agency to another level?
Is everyone in your organization on the same page?

The answers to these questions and more can be found in a strategic plan!

Strategic planning is the framework that determines where an organization is going over the next year or more; how it’s going to get there; and how it will know if it got there or not. It increases effectiveness, efficiency, productivity, and accountability.

We invite you to spend a valuable hour with CharityNet USA and take a look at the steps to developing a clear strategic plan that will lead your organization on the path to success.

Topics of Interest: 
•Why Strategic Planning? 
•Contents of a Killer Strategic Plan 
•Strategic Planning Approaches 
•Keeping the Organization on the Right Track

Join us for a FREE nonprofit webinar August 19, 2010 from 3:00 pm – 4:00 pm (EST) & Push yourself and your team to focus on the future and the commitment that it will take to better serve the community and make your organization a success!

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A free nonprofit webinar discussing the Elements of an Awesome Nonprofit Grant Proposal!

Over $50 billion in grants is given away each year to charities, churches, and schools nationwide. Are you getting your share of this sum?  If you haven’t yet started submitting grants for funding, now is the time to get started!

No matter what your program does, there is most likely grant funding for it; the key is knowing how to prepare a killer grant proposal that will relate your need to the most appropriate funding sources.

We invite you to spend a valuable hour with CharityNet USA and learn how growing your organization’s projects and programs can be possible through nonprofit grants!

Topics of Interest:
  •An Overview of Nonprofit Grants
  •Identifying Projects to Fund
  •Different Types of Funding Agencies
  •Elements of a Grant Proposal

Join us for a free nonprofit webinar on August 12, 2010 from 3:00 pm – 4:00 pm (EST) & learn how to get the funding your organization deserves!

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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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Join us for a FREE Nonprofit Webinar on July 29, 2010 from 3:00 pm – 4:00 pm & learn how to Build the Lifeline of your Organization!

The success of any fundraising program depends on the ability of the volunteers or paid staff members to successfully solicit participation from past, current, and new supporters. This will be achieved by developing strong relationships with the people you encounter and being able to identify special skills, traits and interests that can benefit your organization.

We invite you to spend a valuable hour with CharityNet USA and learn how develop your fundraising team and build the lifeline of your organization!

Topics of Interest:
   • Finding Volunteers
   • Setting Guidelines
   • Identifying & Selecting Leaders
   • Showing Appreciation

Learn how to develop and manage your fundraising team, putting your nonprofit on the fast track to desired expectations at our FREE nonprofit webinar July 29, 2010 from 3:00 pm – 4:00 pm (EST)!

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One of the best ways for nonprofit organizations to acquire the capital funding necessary t o 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. 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. 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 grant proposal.

 Cover Letter (one page)

Provide a clear, concise overview of the organization, purpose and reason for and amount of the funding request. 

Cover Sheet (1/2 page)

Also called an executive summary, this case statement and proposal summary is the most important component of your proposal. Summarize all of the key information and convince the grantmaker to consider your proposal for funding.

Narrative (10-15 Pages)

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

Objectively address specific situation, opportunity, problem, issue, need, and the community your proposal addresses.

• Program Goals and Objectives (1 – 2 pages)

Describe the outcome of the grant in measurable terms; in a succinct description of the proposed project outcome and accomplishments, including your overall goal.

• Methodology (4 + Pages)

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

• Evaluation (1 – 2 Pages)

Determine the plan for meeting performance and producing the program/project and justify how you will measure the effectiveness of your activities

Budget

Clearly delineate costs to be met by the funder and all other funding sources; outline both administrative and program costs.

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).

Qualifications (1-2 pages)

Describe applicant, qualifications for funding and establish credibility. 

Conclusion (1/2 page)

Present a brief, concise summary of your proposal that states your case, problem, solution and sources/uses of project/program funds.

Hopefully this article will allow your organization to add a new funding source to the fundraising, donations, and soliciting that you are currently undertaking. 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. Your nonprofit organization should take advantage of all fundraising sources including nonprofit grants.

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A Free Nonprofit Webinar about Getting your Non Profit Started by Utilizing Social Media Effectively!

From social networking and blogging to bookmarking and video streaming, there are dozens of ways to implement social media into your marketing mix, but that means nothing if they are not implemented effectively.  In order for your efforts to provide you with a significant return, you must figure out what methods work best for you and know how to execute them!

We invite you to spend a valuable hour with CharityNet USA and learn how to get started utilizing social media to grow your nonprofit by building content online that will get people talking!

Topics of Interest:
   •The New Realm of Social Media
   •5 Social Media Methods
   •How to get People Talking
   •Integrating your Social Media Campaigns

Don’t get left in the dust! Get social and start reaching millions through this new medium by attending our FREE nonprofit webinar July 15, 2010 from 3:00 P.M. – 4:00 P.M. (EST)!

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A free webinar about getting your nonprofit’s financials in order!

Bookkeeping is one task that many nonprofits neglect or make half-hearted efforts at doing.  Both options are a mistake.

In the accounting process, you are classifying, reporting and analyzing financial data –none of that can happen without accurate, organized data.  Bookkeeping is the first basic step to this process!

We invite you to spend some invaluable time with CharityNet USA and learn a number of ways to make sure that your nonprofit gets its financial house in order!

Topics of Interest:
   •Things Needed to get Started
   •Bookkeeping & Accounting Process
   •Financial Reporting Tools
   •Solutions and Tips on Record Keeping

Learn the importance of basic financial management, bookkeeping and accounting and how to master it so your organization can reap the benefits by attending our FREE nonprofit webinar on June 24, 2010 from 3:00 pm – 4:00 pm (EST)!