What Does it Mean to Be Tax-Exempt?

Tax-exempt charitable corporations are a surprisingly common part of American life. Most churches, colleges, libraries and charities are organized as tax-exempt charitable corporations, free from the burden that an income tax imposes on most people and businesses. However, being tax-exempt doesn’t mean you’re entirely free of obligations, and if you’re not careful, your tax-exempt corporation could find its status stripped, exposing it to massive financial liability. Continue reading “What Does it Mean to Be Tax-Exempt?”

Reporting Requirements of Tax-Exempt Religious Entities

One of the most significant benefits of running a nonprofit religious organization is the tax-exempt status you can qualify for. However, that doesn’t mean you don’t need to worry about the IRS or tax authorities at all. It’s important for everyone, including tax-exempt entities, to be aware of their reporting requirements, lest they incur potential legal or financial liabilities. Continue reading “Reporting Requirements of Tax-Exempt Religious Entities”

Prohibited Activities by Nonprofit Organizations

Operating a nonprofit corporation can give you a lot of freedom compared to operating a for-profit corporation. For one, you can simply do whatever your organization was created to do, without worrying about whether you’re pleasing shareholders. For another, you can get a tax-exempt status that will protect you from the burden of the corporate income tax. However, that status isn’t absolute, and if you engage in any prohibited activities, your nonprofit status can be revoked. Continue reading “Prohibited Activities by Nonprofit Organizations”

Is a Nonprofit Corporation Right for You?

When people think about corporations, a few names will spring to mind: Disney, McDonalds, Walmart, Coca-Cola, Apple, maybe even something like Comcast or Nintendo. And that’s because most people only really think about for-profit corporations. However, just about every major charity is also incorporated, as are many colleges and universities. The big difference is that these are nonprofit corporations, and depending on what you intend to do, a nonprofit corporation might be just what you need. Continue reading “Is a Nonprofit Corporation Right for You?”