"Tax exemption is the reduction or removal of a liability to make a compulsory payment that would otherwise be imposed by a ruling power upon persons, property, income, or transactions."
Learn about the tax laws and regulations that apply to nonprofits and the requirements for maintaining tax-exempt status.
Nonprofit Organizations: An Introduction: This topic covers the basics of nonprofit organizations and their objectives and activities.
Tax-Exempt Status: This topic discusses what tax-exempt status is, its benefits, and the requirements that organizations must meet to qualify for it.
IRS Regulations and Compliance: This topic covers the requirements and regulations set forth by the IRS related to nonprofit organizations' tax-exempt status, including tax filing and reporting requirements.
Types of Nonprofits: This topic explains the different types of nonprofits, their distinctions, and the various tax implications.
Form 990: This is the annual information return filed by nonprofit organizations with the IRS. This topic explains the form's different parts and the information required to be reported to the IRS.
Fundraising Regulations: This topic covers the regulations surrounding fundraising for nonprofit organizations, including solicitation registration requirements.
Unrelated Business Income Tax (UBIT): This topic describes what UBIT is and its implications for tax-exempt nonprofit organizations that generate income from unrelated business activities.
State Tax Exemptions and Compliance: This topic delves into the regulations and requirements set forth by state governments concerning tax-exempt status for nonprofit organizations operating within their jurisdiction.
Board Governance and Fiduciary Duty: This topic explores the responsibilities of nonprofit boards of directors and their members concerning the financial management of the organization.
Auditing and Accounting: This topic covers financial statement preparation, audits, reviews, and other accounting requirements for nonprofit organizations.
Nonprofit Tax Issues: This topic covers various tax issues that nonprofit organizations may encounter, such as excise taxes and unrelated business income tax.
Reporting Requirements for Donors: This topic describes the tax implications for donors who contribute to nonprofit organizations.
Grant Writing and Compliance: This topic covers the process of applying for grants and the compliance requirements that come with receiving them.
Lobbying and Political Activity: This topic explores the limitations on lobbying and political activity for nonprofit organizations and the potential tax implications of violating these restrictions.
Business and Corporate Partnerships: This topic covers the opportunities and challenges associated with nonprofit organizations' partnerships with businesses and corporations.
Intellectual Property: This topic discusses the protection of intellectual property and copyrights for nonprofit organizations.
Employment Taxes and Compliance: This topic explores the employment tax requirements for nonprofit organizations, including payroll taxes and reporting.
International Tax Issues: This topic covers the tax implications of nonprofit organizations operating in foreign countries and the steps required to comply with international tax laws.
Nonprofit Mergers and Acquisitions: This topic covers the considerations and steps necessary for nonprofit organizations to merge with or acquire other organizations.
Nonprofit Dissolution: This topic covers the process and requirements for dissolving a nonprofit organization, including the distribution of assets and account for tax implications.
Annual Filing Requirements: This topic explains the annual filing requirements that nonprofits need to follow to maintain their tax-exempt status.
501(c)(3): This is the most common type of tax exemption for nonprofit organizations. It exempts the organization from federal income tax and allows individuals who donate to the organization to receive a tax deduction.
501(c)(4): This type of tax exemption is similar to 501(c)(3), but it allows the organization to engage in lobbying and political activities. Donations to 501(c)(4) organizations are not tax-deductible.
501(c)(6): This type of tax exemption is for business leagues, chambers of commerce, and trade associations. These organizations are typically exempt from federal income tax and can engage in some lobbying and political activities.
501(c)(7): This type of tax exemption is for social clubs, such as country clubs and fraternal organizations. These organizations are typically exempt from federal income tax and can only engage in limited political activities.
501(c)(8): This type of tax exemption is for fraternal organizations, such as the Masons and Elks. These organizations are typically exempt from federal income tax and can engage in some lobbying and political activities.
501(c)(9): This type of tax exemption is for voluntary employee benefit associations, such as unions and worker cooperatives. These organizations are typically exempt from federal income tax and can engage in some lobbying and political activities.
501(c)(10): This type of tax exemption is for fraternal societies providing insurance to members. These organizations are typically exempt from federal income tax and can engage in some lobbying and political activities.
501(c)(12): This type of tax exemption is for mutual insurance companies or associations. These organizations are typically exempt from federal income tax and can engage in some lobbying and political activities.
501(c)(13): This type of tax exemption is for cemetery companies or organizations. These organizations are typically exempt from federal income tax and can engage in some lobbying and political activities.
501(c)(19): This type of tax exemption is for veterans' organizations. These organizations are typically exempt from federal income tax and can engage in some lobbying and political activities.
"Tax-exempt status may provide complete relief from taxes, reduced rates, or tax on only a portion of items."
"Examples include exemption of charitable organizations from property taxes and income taxes, veterans, and certain cross-border or multi-jurisdictional scenarios."
"Tax exemption generally refers to a statutory exception to a general rule rather than the mere absence of taxation in particular circumstances, otherwise known as an exclusion."
"International duty-free shopping may be termed 'tax-free shopping'."
"In tax-free shopping, the goods are permanently taken outside the jurisdiction, thus paying taxes is not necessary."
"Tax-free shopping is usually available in dedicated duty-free shops."
"Tax-free shopping is also found in ships, airplanes and other vessels traveling between countries (or tax areas)."
"However, any transaction may be duty-free, given that the goods are presented to the customs when exiting the country."
"In such a scenario, a sum equivalent to the tax is paid, but reimbursed on exit."
"More common in Europe, tax-free is less frequent in the United States, with the exception of Louisiana."
"However, current European Union rules prohibit most intra-EU tax-free trade, with the exception of certain special territories outside the tax area."
"Examples include exemption of charitable organizations from property taxes and income taxes."
"Examples include exemption of charitable organizations from property taxes and income taxes."
"Examples include exemption of charitable organizations from property taxes and income taxes, veterans, and certain cross-border or multi-jurisdictional scenarios."
"Tax exemption also refers to removal from taxation of a particular item rather than a deduction."
"Tax exemption is more common in dedicated duty-free shops."
"In tax-free shopping, the goods are permanently taken outside the jurisdiction, thus paying taxes is not necessary."
"Tax-free shopping is less frequent in the United States, with the exception of Louisiana."
"However, current European Union rules prohibit most intra-EU tax-free trade, with the exception of certain special territories outside the tax area."