Creating a nonprofit organization, especially a Section 501(c)(3) organization, can be a daunting ta![\"Approved\"](\"http:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2009\/05\/501c3_3.jpg\" "\\"Approved\\"")
sk.\u00a0 If you do not know what you are doing, you are most likely going to get lost in the paperwork, the process, and the extensive steps necessary to get a nonprofit organization created.\u00a0 However, some basic tips are available to give taxpayers a heads-up before a taxpayer starts to create a nonprofit organization.<\/p>\n
First, a Section 501(c)(3) organization must be organized as a corporation, trust, or unincorporated association.\u00a0 A taxpayer cannot create a Section 501(c)(3) organization without first creating one of the above listed entities.\u00a0 Also, the organization’s organizing documents must limit the organization’s purpose to those described in Section 501(c)(3) and to not expressly permit activities that do not further its exempt purposes.<\/p>\n
Second, the Section 501(c)(3) organization must have a substantial portion of its activities further its exempt purposes.\u00a0 However, certain activities are prohibited from occurring by the organization, such as the following:<\/p>\n
Third, the Section 501(c)(3) organization must\u00a0 have one or more exempt purposes that are stated in its organizing documents.\u00a0 The following list of exempt purposes are generally allowed for Section 501(c)(3) organizations:\u00a0 (1) charitable, (2) educational, (3) religious, (4) scientific, (5) literary, (6) preventing cruelty to children or animals, and (7) testing for public safety.<\/p>\n","protected":false},"excerpt":{"rendered":"
Creating a nonprofit organization, especially a Section 501(c)(3) organization, can be a daunting task.\u00a0 If you do not know what you are doing, you are most likely going to get lost in the paperwork, the process, and the extensive steps … Continue reading