Why form a tax-exempt nonprofit corporation?
Being organized as a tax-exempt corporation is a common requirement for obtaining grant funds from government agencies and private foundations. Generally, tax-exempt government foundations as well as private foundations and charities are required by their own operating rules and by IRS regulations to donate their funds only to 501(c)(3) tax-exempt organizations or else forfeit their own tax-exempt status.
Being organized as a tax-exempt corporation is a common requirement for obtaining grant funds from government agencies and private foundations. Generally, tax-exempt government foundations as well as private foundations and charities are required by their own operating rules and by IRS regulations to donate their funds only to 501(c)(3) tax-exempt organizations or else forfeit their own tax-exempt status. Additionally, only tax-exempt nonprofit corporations provide donors with the incentive of an individual tax deduction on all donations given to your nonprofit. Additional benefits include, low cost mailing, discounted advertisements, and other private and governmental discounts.
