Nonprofits and Political campaigning

Tax exemption recognition and Political campiagning do not go together for non profit organizations. Nonprofits that seek 501(c)(3) tax exemption are not allowed to support or affiliate to any political group. Nonprofits that intend to indulge in political campaigns must instead seek recognition under section 527 of the IRS rules. The rules for lobbying are […]

Being a Nonprofit Employer

A nonprofit organization can hire: a) Employees – Including full time, part time employees and/or officers b) Independent Contractors – for availing one-time or specialized services c)Volunteers – to execute programs and activities as outlined in the organization’s mission – though technically this does not constitue hiring. The moment a Nonprofit organization hires its first […]

Tax exemption for nonprofits:The basics

As per the Federal taxation system tax must be paid on income earned by individuals or corporations. There are however certain categories of Income that are exempt from tatxation under special statutes passed by the Congress. Non profit organizations are exempt from paying taxes, if they comply to certain norms and provisions laid down for […]

Starting a trust

As an alternative to incorporation – A non profit organization can also be started as a trust. While trusts are the common structure of Starting a non profit organization in the United Kingdom, they are rarely used in the United States. In the United states, trusts are more commonly used for Will and estate planning, […]