What is a 501c3 organization? Learn what it means for a startup nonprofit to become tax-exempt

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Boss on a Budget - Build a Strong Nonprofit

4 жыл бұрын

What is the difference between a 501c3 and a nonprofit? Did you know that every nonprofit is not a 501c3 organization? As a startup nonprofit, you should know the difference so you don't make any mistakes when you apply for tax-exempt status. This is video is 501c3 explained while addressing how to apply and what that means for your non profit organization.
In this video, learn how to apply for and maintain your tax-exempt status with the IRS. You'll learn why you have to go through 2 separate processes to become a tax-exempt organization (starting with the state and then the IRS). I will also talk about the forms required to get your 501c3 status.
TO LEARN HOW TO START A NONPROFIT, DOWNLOAD MY FREE NONPROFIT STARTUP CHECKLIST: rebrand.ly/npchecklist
FOR HELP FORMING YOUR NONPROFIT THE RIGHT WAY, USE MY NONPROFIT STARTUP WORKBOOK: rebrand.ly/npstartupworkbook
If you want to learn more strategies to get up and running with your new or small nonprofit, please visit me on my Facebook page:
bossonab/
★☆★ Subscribe to my Channel: ★☆★
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★☆★ Read my blog on becoming a nonprofit:
www.bossonabudget.com/blog-1/2017/2/27/the-only-checklist-youll-ever-need
★☆★ To download my FREE nonprofit compliance checklist I mentioned in the video, go here: bossonabudget181.activehosted.com/f/34
To apply for an EIN number: www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
To see the IRS Form 1023: www.irs.gov/forms-pubs/about-form-1023
To check your eligibility for the 1023EZ form: www.irs.gov/forms-pubs/about-form-1023-ez
To see the 990 form: www.irs.gov/forms-pubs/about-form-990
★☆★ VISIT MY WEBSITE ★☆★
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Пікірлер: 130

@RelationshipCoachRiverFlow 3 жыл бұрын

You're a blessing 🙏🏾

@BossonaBudget 3 жыл бұрын

Thank you so much for watching!

@user-lm9ni3fu3q 9 ай бұрын

Hello, creating a non-profit in Texas. Truly appreciate you for creating this platform for upcoming businesses.

@DMosleyCFS 3 жыл бұрын

I'm subscribing, you definitely do an outstanding job with clarity and detail.

@BossonaBudget 3 жыл бұрын

Thanks so much 🤗

@yanglu9555 11 ай бұрын

I second that! I am definitely lost prior to watching this video!

@Popx_99 Жыл бұрын

You’re a blessing thank you!

@cyndibarnett9164 2 жыл бұрын

Thank you for making these information simple.

@BossonaBudget 2 жыл бұрын

You're welcome, thanks for watching!

@harveydakidd14 3 жыл бұрын

Thanks for the info, Boss!

@BossonaBudget 3 жыл бұрын

Thanks for watching!

@trellholiday9603 2 жыл бұрын

GREAT TUTORIAL THIS SISTER SHARED WITH US !!

@BossonaBudget 2 жыл бұрын

Thank you for watching!

@daltonnewbend2045 2 жыл бұрын

Thank you for your help!!

@BossonaBudget 2 жыл бұрын

You’re welcome. Thank you for watching!

@smileyhicks 5 ай бұрын

you already know, You are a Blessing !!!

@BossonaBudget 5 ай бұрын

Thanks so much for watching!

@jenshealthhut2546 2 жыл бұрын

Great information. Thanks.

@BossonaBudget 2 жыл бұрын

Thank you for watching!

@HEIR.BRANDON 2 жыл бұрын

Came across your page! Thank you so much for your info, just subscribed.

@BossonaBudget 2 жыл бұрын

Thank you for subscribing!

@willievaughn6474 2 жыл бұрын

THANK YOU SO MUCH, THAT WAS VERY AWESOME

@BossonaBudget 2 жыл бұрын

You're welcome, thank you for watching!

@sarahmuller1249 2 жыл бұрын

Thanks for your help

@BossonaBudget 2 жыл бұрын

You’re welcome, thank you for watching!

@milo-hc9nk 2 жыл бұрын

Fabulous video miss

@ant7440 3 жыл бұрын

Very informative

@BossonaBudget 3 жыл бұрын

Thank you for watching!

@arunasharma9432 Жыл бұрын

Thank you, so much again.

@BossonaBudget Жыл бұрын

You’re very welcome

@reesiegary9725 3 ай бұрын

Thank you.

@33ling_truth2 Жыл бұрын

Thanks. ❤

@snflowermom3772 4 ай бұрын

Thank you

@davidodeyemi1068 Жыл бұрын

Thank you. 🙏🏿

@BossonaBudget Жыл бұрын

You’re welcome, thank you for watching!

@relaxingmusicandsounds6920 Жыл бұрын

Very Helpful😊…🙏🏿🙏🏿🙏🏿

@BossonaBudget Жыл бұрын

Thanks for watching!

@Jjohnson32k Жыл бұрын

Thank youuu!!!

@BossonaBudget Жыл бұрын

You’re welcome, thanks for watching!

@melindajones340 3 жыл бұрын

You have truly helped me I am starting grant writimg but I am trying to learn about the different forms needed for a nom profit businesd so we can stay within the law again thank you

@BossonaBudget 3 жыл бұрын

I'm glad this helped! Let me know if you have other questions.

@jaytrump2537 Жыл бұрын

B.O.B go CRAZYYY

@user-nk6ie3vm3p 2 жыл бұрын

Thanks 🙏

@BossonaBudget 2 жыл бұрын

Thanks for watching!

@shaycooper3989 Жыл бұрын

I went to the IRS website and read the rules and I completed a test on that website on my knowledge from what I learned from the video they show you how to stay tax exempt so you won't get in trouble

@BossonaBudget Жыл бұрын

That’s great! It’s always good to go directly to the source as I always say.

@measuresofwellness 3 жыл бұрын

Thanks

@BossonaBudget 3 жыл бұрын

Thanks for watching!

@mariasproducts2186 2 жыл бұрын

Thank

@MsQuon-ru9ic 3 жыл бұрын

I am from Syracuse NY. I just filled out your form

@BossonaBudget 3 жыл бұрын

Looking forward to speaking with you!

@MsQuon-ru9ic 3 жыл бұрын

I can't wait either. I really need some info.

@daphney_elaine 10 ай бұрын

TY🙏🏾

@BossonaBudget 10 ай бұрын

You’re very welcome!

@locsybrown 2 жыл бұрын

Thank you, I really appreciate you sharing this information. Is there a limit that you can pay yourself and employees that work in your 5013c?

@BossonaBudget 2 жыл бұрын

Your compensation must be reasonable in comparison to similar positions. You'll have to satisfy what the IRS believes should reasonable and show documentation for how you determined it.

@ricoslife9033 Жыл бұрын

Itz wicked

@tamikaarceneaux9842 Жыл бұрын

What is the difference in the forms 1023 vs. 1023z?

@kdh1442 3 жыл бұрын

Thank you for this information! I think I’m more clear on obtaining a 501c3. I do want to ask how do I get you to be my mentor. Even though I purchased the nonprofit workbook & board of directors toolbox, I’m still needing you! Lol🤦🏽‍♀️

@BossonaBudget 3 жыл бұрын

🤗 I think I shared info on my “boss up” sessions where I help you problem solve. BUT I’m about to launch a new way I can stay connected with everyone beyond my videos. Stay tuned 😉

@inayatullah3094 2 жыл бұрын

If you need a business plan for your project kindly let me know. Thanks

@mob5860 2 жыл бұрын

🔥🔥🔥🔥🔥

@yanglu9555 11 ай бұрын

@BossonaBudget, Thank you for creating this wonderful content. My question to you is should I apply for an LLC as well as the EIN for the Non-profit Organization that I would like to create?

@BossonaBudget 11 ай бұрын

Thanks for watching! Can you restate your question? LLC and EIN are two different things, so I want to make sure I understand.

@yanglu9555 11 ай бұрын

@@BossonaBudget Do apologize about that. I've realize that it has two parts to my question after I've send it to you. Wish I am new to this and need some guidance. I am doing my research in creating an LLC company down the road. So where can I start? Would an LLC be better than a non-profit organization or should I just stick with a non-profit organization? I'm mean it sounds like a non-profit organization have a lot of guidelines to follow especially in applying for grants, EIN, etc. And lets say if I do go ahead and create a non-profit organization what else do I need to watch out for in terms of laws and regulations? So my ideal plan at a later time is to create a program to assist with grade school students that deals behavioral issues in school and perhaps give them a second chance in prepare them for better future in life and hopefully create a skill trade program so they feel a sense of support and build their personal structure in life. Thank you again!

@BossonaBudget 11 ай бұрын

Hi, that decision (LLC vs nonprofit) depends on several factors so it’s best to watch a few videos so you can make an informed decision. I’ll drop some links: kzfaq.info/get/bejne/qKelpcthuparZWQ.html

@BossonaBudget 11 ай бұрын

kzfaq.info/get/bejne/a52HlJN7ruDOcZ8.html

@mob5860 2 жыл бұрын

🔥🔥🔥🔥🔥🔥

@dina_1111 3 жыл бұрын

Are the Board Members allowed to be paid a salary for their time or is it suppose to be volunteer only? I’m in CA.

@BossonaBudget 3 жыл бұрын

California law may prohibit this, in not sure, but generally for direct service nonprofits, board members shouldn’t be paid. Here’s a video explaining it: kzfaq.info/get/bejne/hZd5jb2JmNW3c5c.html

@joenelson5819 3 жыл бұрын

Do you cover the specifics of a 509 (a) (2)

@BossonaBudget 3 жыл бұрын

I cover it in another video that discusses the biggest mistake people make when applying for their 501c3. Do you have a question about it?

@SamuelIBrugger Жыл бұрын

A littlle question of this 501c3 status. As I understand it is a US based status but is there other worldwide? An cause a lot of fundraising websites they look for it and I need some fundraising for my projects in Campeche, half-island of Yucatan which are about biodiversity and co2 kidnapping. I know the word doesn't sound very friendly but it is the term they use and who am I to change terms??? :)

@BossonaBudget Жыл бұрын

Yes there are other charitable statuses for other countries. If you’re fundraising in the US you should get 501c3 status.

@shawngormley 3 жыл бұрын

Do you know of a company that will handle all of the paperwork and get your 501c3 from state to federal level?

@BossonaBudget 3 жыл бұрын

I provide assistance with the 1023EZ forms but not the state incorporation. What state are you in? If you want to talk more about the 1023EZ, you can fill out this form and we can schedule a time to talk: www.cognitoforms.com/TiffanyAllen1/BossOnABudgetInquiryFormFederalTaxExemptStatusFilingInformation

@mixbeatzmuzik Жыл бұрын

If you are a director/manger/ etc... can you, or how do you pay yourself to operate the non-profit?

@BossonaBudget Жыл бұрын

Hi! I cover those questions in this video: Starting a Nonprofit: How to Pay Yourself kzfaq.info/get/bejne/jK6ThZaQz72-k4E.html

@jesussrquiroz304 2 жыл бұрын

Question Will board members of the nonprofit have any tax risk?

@BossonaBudget 2 жыл бұрын

I can’t provide tax advice but I will say that there is no ownership so money that the organization makes does not count as income to any of the board members.

@BossonaBudget 2 жыл бұрын

Therefore they wouldn’t be taxed on that

@jesussrquiroz304 2 жыл бұрын

@@BossonaBudget they would not have any forms to submit to the IRS.

@BossonaBudget 2 жыл бұрын

I would recommend they consult with their own tax professional because everyone’s tax situations are different but they absolutely would still need to file their own taxes. If they donate to the organization they may be able to write it off on their taxes.

@TheMeatball23 2 жыл бұрын

I would love to connect with someone from your company! I have a music school. Really need help in this area

@BossonaBudget 2 жыл бұрын

Here’s a link to my calendar: calendly.com/bossonabudget/30min

@jaytrump2537 Жыл бұрын

Look MAMA I DID IT IM ON MY WAY YAY ME🕺🤳

@sarangkim5820 Жыл бұрын

Hello! What if you are like 14 years old... how do you get the 501c3?

@BossonaBudget Жыл бұрын

Hi! Your state *may* have a stipulation about the ages of board members but the process for obtaining 501c3 status from the IRS is the same no matter your age.

@r.deanrasmussen3538 2 жыл бұрын

Weren't churches tax exempt before this?

@BossonaBudget 2 жыл бұрын

Before when?

@Heymuskrats 4 жыл бұрын

Hi, my son's school is wanting to start a booster club for robotics and engineering. We have no idea where to start on this. Any advice? Also, we are in Texas and the parent who doesnt mind being on the 501c3 but their child will graduate this year and they dont want to be responsible after that. Would we have to re-apply every year with a new person?

@BossonaBudget 4 жыл бұрын

Hi @Delia Scott, thanks for watching my video! It sounds like you've already made the decision to apply for 501c3 status. If not, you will probably need to consult a lawyer in Texas to talk through options for the booster club. BUT if you know you want to operate as a nonprofit and be a 501c3 organization, you'll need to form a group of parents to be your "founding board" to put all the procedures in place. I just checked and TX requires at least 3 board members to establish a nonprofit corporation. In the beginning stages, I would get the Board together, establish your mission, by-laws, a strategic plan with key goals for the next 1-2 years, and a fundraising plan. Nonprofits have many administrative requirements, so the more you plan before you obtain your status, the better. Establishing a fundraising plan will help you identify the key funding sources you want to pursue to keep you running. Once you have that in place, then I recommend you move to incorporate as a nonprofit with the Secretary of State in TX: www.sos.state.tx.us/corp/forms_option.shtml I have a nonprofit checklist that can help you walk through the steps: bit.ly/38PvrFy As far as the question for the parent that's leaving, make sure you establish term limits in your bylaws so there can be an understanding of how long each Board member should serve. I personally see the benefit of having parents of alumni serve, but either way, having term limits help you have a procedure for members rolling off and on. I hope this makes sense! Please feel free to ask any more questions.

@SB-mb8so 3 жыл бұрын

Can a 501.c3 sell merchandise?

@BossonaBudget 3 жыл бұрын

Yes, but the bulk of your activities have to center on your mission. If you're selling merchandise as a separate business activity, that income is subject to be taxed and depending on how much business you generate, you may be at risk of getting your status revoked. There are a bunch of caveats to this so you should read the IRS guidance here: www.irs.gov/pub/irs-pdf/p598.pdf. An accountant can help you identify which activities center on your mission and which ones the IRS will flag.

@jaelynwilson7268 2 жыл бұрын

So if I’m looking into starting my own competitive cheer team,would a 501(c)(3) be a good option?

@BossonaBudget 2 жыл бұрын

If it fits the definition for a charitable purpose then it could be an option for you. You should consult with a lawyer or accountant for your specific scenario. Sounds like it might work but I can’t say for sure without specifics. The definition is here: www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3

@applyingpressureeveryday8932 Жыл бұрын

Hey is there a non-profit organization categorized as “501(a)” that you know of?

@BossonaBudget Жыл бұрын

Yes I know of those classifications

@applyingpressureeveryday8932 Жыл бұрын

@@BossonaBudget hey do you have any information on it that you wouldn’t mind sharing? Or do you know any resource i can use to gain information on it? I really appreciate you.

@BossonaBudget Жыл бұрын

This may help clear up your questions: www.nonprofitissues.com/to-the-point/what%E2%80%99s-difference-between-501a-501c3-and-509a

@applyingpressureeveryday8932 Жыл бұрын

@@BossonaBudget thank you so much. 🙏🏿🙏🏿🙏🏿

@uniquepushher7210 3 жыл бұрын

Can u be my mentor? I just received my letter on the 10th

@BossonaBudget 3 жыл бұрын

i have a small community of founders that is focused on fundraising where you can get ongoing mentoring: rebrand.ly/moneyonamission If you wan tot talk first, here's my calendar: calendly.com/bossonabudget/30min

@jacquelinepenha3135 2 жыл бұрын

Thank you so much, I want to buy your book and needing grant opportunities. Please email me.

@BossonaBudget 2 жыл бұрын

Hi, for some reason, I'm just seeing this comment. Did you still need assistance? My contact email is info@bossonabudget.com

@stromay_strodec Жыл бұрын

Is your teaching program only for Americans?

@BossonaBudget Жыл бұрын

Hi, some of the concepts apply to any nonprofit, but yes, I speak to US based organizations.

@eleechimdiaclinton368 2 жыл бұрын

Pls how can I write a 501c3 letter

@BossonaBudget 2 жыл бұрын

Can you clarify what you mean by a 501c3 letter?

@eleechimdiaclinton368 2 жыл бұрын

@@BossonaBudget What I mean is a letter that will be submitted to the IRS, as a 501c3 letter. What is your thought? You know better so any information from you can go