What is nonprofit organization? A nonprofit organization is one that qualifies for tax-exempt status by the IRS because its mission and purpose are to further a social cause and provide a public benefit. Nonprofit organizations include hospitals, universities, national charities, and foundations.To qualify as a nonprofit, your business must serve the public good in some way. Nonprofits do not distribute profit to anything other than furthering the advancement of the organization. As such, you will be required to make your financial and operating information public so that donors can see how their contributions are being used. An individual or business that makes a donation to a nonprofit is allowed to deduct their donation from their tax return. The nonprofit, likewise, pays no taxes on any money received through fundraising.
File Nonprofit organization in Florida Besides Article of Incorporation, Chapter 496, F.S., the Solicitation of Contributions Act, requires anyone who solicits donations from a location in Florida or from people in Florida to register with the Florida Department of Agriculture and Consumer Services (FDACS) and to renew annually.
If you intend to apply for IRS federal tax exemption as a charitable organization, your articles of incorporation must contain a required purposed clause and a dissolution of assets provision.
IRC Section 501(c)(4) provides that social welfare organizations are both: • Not be organized for profit. Operated exclusively to promote social welfare. Has net earnings devoted exclusively to charitable, educational or recreational activities. common good and general welfare of the community.