In order for a corporation or other qualifying entity to receive 501(c)(3) status, it must apply to the IRS for recognition of Tax Exemption. The application is a thorough examination of the organization’s structure, governance and programs.
The entity must be organized and operated exclusively for, in our case, the prevention of cruelty to animals. One of the most distinct provisions unique to Section 501(c)(3) organizations is the tax deductibility of donations.
501(c)(3) organizations are highly regulated entities. Strict rules apply to both the activities and the governance of these organizations. No part of the activities or the net earnings can unfairly benefit any director, officer, or any private individual, and no officer or private individual can share in the distribution of any of the corporate assets in the event the organization shuts down.
A public charity is generally defined by the IRS as “not a private foundation.” It receives a substantial portion of its revenue from the general public or from government. In order to remain a public charity, a 501(c)(3) must obtain at least 1/3 of its donated revenue from a fairly broad base of public support. Public support can be from individuals, companies and/or other public charities.
WHAT DOES OUR rescue being a 501(C)(3) MEAN FOR YOU...
The main benefit for you, besides helping to save life that may otherwise be dumped or euthanized, is that donations can be tax deductible up to 50% of your income. Consult further with your tax professional.
The entity must be organized and operated exclusively for, in our case, the prevention of cruelty to animals. One of the most distinct provisions unique to Section 501(c)(3) organizations is the tax deductibility of donations.
501(c)(3) organizations are highly regulated entities. Strict rules apply to both the activities and the governance of these organizations. No part of the activities or the net earnings can unfairly benefit any director, officer, or any private individual, and no officer or private individual can share in the distribution of any of the corporate assets in the event the organization shuts down.
A public charity is generally defined by the IRS as “not a private foundation.” It receives a substantial portion of its revenue from the general public or from government. In order to remain a public charity, a 501(c)(3) must obtain at least 1/3 of its donated revenue from a fairly broad base of public support. Public support can be from individuals, companies and/or other public charities.
WHAT DOES OUR rescue being a 501(C)(3) MEAN FOR YOU...
The main benefit for you, besides helping to save life that may otherwise be dumped or euthanized, is that donations can be tax deductible up to 50% of your income. Consult further with your tax professional.
