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Old 07-14-2009, 09:34 AM
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What are the benefits of gaining "Exempt Status"?

There are several tax and non tax related benefits that can be gained by an organization that gains an Exempt Status. These are as follows;

1. The Exempt Organization gains an exemption from paying Federal Income Tax.

2. The Exempt Organization gains an exemption from paying Sales tax on purchase of Goods & Services.

3. The Exempt Organization gains an exemption from paying property taxes on certain assets used by the organization.

4. Any Donations made to the Exempt Organization received from the public (within certain allowable limits) become deductible from donors' tax liability.

5. The Exempt Organization may become qualified to receive certain federal and state financial support.

6. The Exempt Organization may qualify to participate in certain federal and state programs available to only exempt organizations.

7. The Exempt Organization may even qualify for lower postal rates.


8. The Exempt Organization can qualify for reduced rates for radio and public service announcements in the local media.

9. The Exempt Organization can gain credibility in the non-profit community.


What is a 501(c)(3) tax exempt status?

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Last edited by TaxGuru : 07-14-2009 at 11:01 AM.


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