When you form a nonprofit entity, you can apply for IRS status as a permitted charity. Section 501 (c) (3) status means that your donors can write off contributions to your charity and receive a charitable write off on their federal tax return.
Additionally, any monies received are not subject to a corporate tax. Filing for a 501 (c) (3) status is not a simple matter and can in some cases take a year or longer to get approved.
Corporate Direct can refer you to a firm that specializes in these filings. For more information or to get started, call us today at 800-600-1760 or sign up for a free 15-minute consultation.