IRS Rates have increased again!

You may not be aware that starting January 1, 2010, the IRS began increasing their tax-exempt application form fees from $300/$750 to $400/$850. That's a $100 increase per section.

I'm sure the development of your tax-exempt, nonprofit organization is very important to you - just like service is very important to us. Don't waste your precious time and money trying to setup your organization alone - call me and let my specialists take care of the hard work for you. To date we have a 100% Approval ratio with the IRS!

The next step to help you move forward is up to you - are you ready? If so, give me a call or email me and let’s work out a plan to get you started. We’re getting a lot of business in, and will have to start turning projects away…so the sooner you call the better - seriously!

Hope to hear from you soon. Meanwhile, feel free to check out our website: NonProfitServices.org

Does being a Nonprofit Corporation mean we're a 501(c)(3)?

What a great question - and one I'm asked all the time.

The short answer: NO! Not even close.

Unfortunately, a lot of people contact me saying they did their own nonprofit incorporation, and now they're ready to apply for grant funding. The truth is all they are is a nonprofit corporation. They are NOT tax-exempt. (And that begs the question: did they incorporate properly? Did they include all the IRS provisions? In most cases they have not - but that's a subject for my next article!)

When one incorporates as a nonprofit organization, that is done through your state. The corporation is now a legal entity, and the articles act as your guideline for running the nonprofit business. Obtaining nonprofit corporate status with your state does not automatically carry over to the federal government, however, and the Feds are the only ones who can approve you for that much sought-after 501(c)(3) status.

"Nonprofit" is really a misnomer, however. A 501(c)(3), while it is in most cases a nonprofit corporation, is should really be referred to as a "tax-exempt" corporation. Meaning as long as the funds you raise are done so with your stated purposes in mind and used for those purposes, those funds will not be taxed.

So pretty much you must first incorporate as a nonprofit corporate with your state. THEN you must file an application with the IRS, requesting tax-exempt or 501(c)(3) status.

Once you've gotten the approval of both your state and the IRS - you may then call yourself a 501(c)(3) nonprofit corporation, and obtain grant funding.

And while most states will automatically recognize your federal tax-exempt status - most will still require you register with them as well, so be sure to check with your state to see what their requirements are for your situation!

For additional information, call Travis Belcher @ 865.694.3900.

The Innovation Fund

If you heard the speech by President Obama today, then you'll know the new administration is working hard to change the climate for the nonprofit sector, reduce troops in Iraq, and use taxpayer dollars for supplanting volunteer efforts. Through the Innovation Fund, President Obama and his team is determined to find the "hidden gems" - that is those nonprofit organizations that have a proven track record in providing proven solutions to our nation's issues. He wants to obtain strategic advice from grassroots organizations; learn how to scale-up government efforts; and partner in providing real-time solutions for the needy in OUR country.

To this end, the new administration will provide resources to help those special nonprofits chosen to reach their full potential and will in fact network with the nonprofit sector to achieve their goals.

If you are interested in serving your country and forming a nonprofit organization to become one of those hidden gems, give us a call - we can help you get your organization started! 865.694.3900.