Perhaps you have encountered the numerous myths and misconceptions that are associated with non-profit organizations.

Myth 1: All non-profits are tax exempt.
Fact: While almost all tax-exempt organizations in the United States are nonprofits, not all nonprofits are eligible for tax exemption. Congress has bestowed the Internal Revenue Service with the responsibility of recognizing tax exemption for qualifying organizations. To apply for recognition of exemption from tax for your organization, click here.

Myth 2: Tax-exempt means not taxable at all.
Fact: Contrary to popular belief, being tax-exempt does not mean that the organization has no tax obligations whatsoever. The exemption only applies to federal income taxes, meaning that the organization may have state, local, payroll and other taxes to worry about.

Myth 3: Any donation to a non-profit is deductible.
Fact: Many generous folks are disappointed when their donations to a tax-exempt organization gives them little or no benefit on their tax return. A competent professional can make an analysis of your total tax exposure and determine the potential deductibility or otherwise of your gift. To find out how, click here.

Myth 4: Any lawyer or accountant can competently handle tax exemption matters.
Fact: Not all lawyers, CPAs or enrolled agents have the expertise in nonprofit tax advising. While some legal practitioners are excellent in immigration, patent securities, and other aspects of law, taxation issues for nonprofits are a whole different story. Just as you would not go to a dentist for a heart operation, you should never seek the help of a divorce lawyer with tax exemption matters.

As our mission, we provide information that would debunk some of these myths and help you run your non-profit organization more efficiently and successfully. For a detailed article on this subject, click here

At ABC GROUP, LLC, we will:
• advise you on the procedure of starting and running your non-profit organization;
• apply for recognition of exemption from tax under the appropriate provisions of the Internal Revenue Code;
• help you determine and file appropriate returns annually e.g Forms 990, 990PF, 990EZ
• advise on the tax and other implications of fundraising strategies, lobbying and political activities;
• work with your organization in determining the deductibility of gifts and avoiding penalties or endangering your organization’s exempt status.
• determine what arrangements may be permissible without jeopardizing tax-exempt status.

For any of these or other services, Contact Us