Wednesday, September 6, 2017
What Qualifies as a Nonprofit for Tax Exemption
What Qualifies a Nonprofit for Tax Exemption?
In an article on thebalance.com, Joanne Fritz explains what qualifications a nonprofit must have in order to reach 501c(3) status. She starts off her article by explaining that tax-exempt means that nonprofits do not pay most federal income taxes and some state taxes, as well as their donors getting a tax deduction when they donate to the nonprofit organizations. She then goes onto explain that there are 29 types of nonprofit organizations, each being exempt from different kinds of taxes. Then she explains the different tests an organization must pass to become a nonprofit organization. These tests include: (1) the organizational test, (2) the political test, or (3) the asset test. To learn more about what gives a nonprofit their tax-exempt status click here: https://www.thebalance.com/what-qualifies-a-nonprofit-for-tax-exemption-2501886