Welcome to another video from Jon’s Bookkeeping.
I’m Jon Cooney and today I want to talk about Non-Profit Organizations.
Are you considering establishing a Non-Profit organization?
Understanding its benefits, structure and tax implications is crucial.
So what is a non-profit?
A Non-Profit Organization is a tax-exempt entity pursuing social, charitable, educational or religious goals.
Registered as a 501(c)(3) organization
Donations are tax-deductible for donors
No personal financial gain for founders or members
Focus on public benefit, not profit"
Non-Profit benefits include:
Federal income tax exemptions
Public trust and credibility
Eligibility for grants, funding and sponsorships
Limited liability protection for board members and officers
Attracting volunteers, donors and community support
Non-Profit structure typically consists of:
Board of Directors: oversees strategy, governance and financial decisions
Officers: manage daily operations, programs and services
Members: support organization through volunteering, donations
Annual reports, audits and compliance requirements
Here are some Non-Profit tax considerations:
Exempt from federal income tax, but subject to state and local taxes
Compliance requirements: annual Form 990 filing
Potential tax benefits: sales tax exemptions, property tax relief
Professional guidance recommended
Non-Profit organizations prioritize social impact while minimizing taxes.
Consult a professional to ensure compliance and maximize benefits.
And if you need business entity guidance or bookkeeping services, schedule a free consultation call with me.
We can discuss your business goals and financial needs.
I’m sure I can help you and I’d love to speak with you!
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