© 2018, THE NON-PROFIT ASSISTANCE CORP. 

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This website provides general information about non-profits and the non-profit industry. This website does not provide legal advice and the Non-Profit Assistance Corp. is not a law firm. No attorney-client or confidential relationship exists or will be formed between you and the Non-Profit Assistance Corp. or any of our Consultants.

Phase 3: Tax-Exemptions

Our fees for preparing and filing applications for tax-exemption will vary based on certain factors determined by IRS guidelines. We will provide you with a flat fee that is customized for your needs. 

Federal Tax-Exemption

If an organization receives tax-exempt status it is not required to pay federal income tax on income derived from activities relating to its exempt purpose and mission, but it must maintain accurate records to keep its status.

Other benefits of federal tax-exemption include the following: 

  • Most donations to tax-exempt organizations are deductible; 

  • It provides access to certain grants and funding;

  • IRS recognition gives the organization a sense of credibility; and

  • it provides discounts/free postage with the US Postal Service. 

State Tax-Exemptions

If an organization receives its federal tax-exempt status, many states will offer the organization additional exemptions from the obligation to pay tax such as exemptions for reemployment tax, property taxes, and sales and use tax.