501c3 Tax Exempt Services - Guy Garman Ministries - 501c3 non profit incorporation

Churches, synagogues, mosques, temples, interchurch organizations, integrated auxiliaries of churches, non-profit hospitals and their auxiliaries, non-profit clinics and medical research facilities, colleges, universities, private schools, non-profit day care centers and preschools, adult education and community schools, legal aid organizations, historical societies, environmental organizations, museums, zoos, symphonies, orchestras and bands, opera groups, non-profit theater, dance and other performance groups, non-profit marriage, personal and vocational counseling, non-profit drug/alcohol abuse prevention/treatment/rehabilitation, youth organizations, humane societies, scholarship funds, aid to the homeless, aid to the handicapped, aid to the elderly, combating prejudice and discrimination, civil rights organizations, evangelist and missionary groups, public television and radio.

Non-Profits seek recognition of 501(c)(3) exempt status from the IRS because such recognition provides many benefits. This is crucial for the prosperity of the Organization, and also that the Directors of the organization, as well as its donors and contributors, are certain that the Organization is eligible for exemption and the many tax-preferred provisions that congress has created for such organizations.
501(c)(3) Tax Exempt Benefits

· Public recognition of nonprofit 501(c)(3) tax-exempt status
· Advance assurance to donors of deductibility of contributions
· Eligible to receive federal, state and local grants
· Exemption from federal taxes and tax deductions for contributors
· Exemption from state income taxes, sales taxes and property taxes
· Non-profit mailing privileges, and cheaper classified rates
· Free radio, television and print "public service announcements"

The only way to establish a bonified tax exempt recognition with the IRS and the community is to apply for and must be granted the exempt status under the section 501(c)(3) of the IRS code. However, the IRS establishes a number of overriding restrictions and limitations that apply to your organization. Meeting these rules is critical to qualifying for and maintaining your non-profit tax-exempt status. These laws are complex.

Internal Revenue Service (IRS) Application User Fee
Internal Revenue Service (IRS) requires a payment of a one time "user fee" with each application for a 501(c)(3) determination letter.
An organization that have averaged, or will average gross receipts NOT more than $10,000 during its first 4 years (NOT more than $ 40,000.00 combined annual gross income for the first four years) the Fee is $300.00
An organization that have averaged, or will average gross receipts MORE than $10,000 during its first 4 years (more than $ 40,000.00 combined annual gross income for the first four years) Fee $750.00

Process

Upon receipt of the completed application and attachments the Internal Revenue Service will send you a Letter of Acknowledgment of your request and assign a document locator number. Technically they have up to 120 days to respond.
This specialist will go over the entire application and attachments, in which it can take up to four months to finish the process.
According to the IRS not all organizations will receive a favorable determination letter.

What happens next?
After the technical review, which can take up to 4 months, you will receive a "determination letter" (this is your 501(c)(3) status) direct from the Director of Exempt Organizations. This letter will state that you are exempt from federal income taxes under section 501(c)(3). Churches receive Definitive Rulings under section 170(b)(1)(A)(i) Note! The IRS does not give 501(c)(3) identification numbers. This exemption will be retro active to the date of incorporation, (if filed on time) which means any contributions you receive since you have been incorporated will be fully tax deductible.

Your letter is important as it shows to your grantors and contributors and the public that you are indeed a 501(c)(3) organization. The letter will also spell out restrictions and conditions that apply if you are to remain tax-exempt under sec. 501(c)(3). Moreover, the letter will address your Information and Annual Reporting Requirements to IRS.

Advance Ruling and Definitive Ruling
If you have completed a closed accounting period of at least 8 months you are eligible for a Definitive Ruling . If not, the IRS will give you an Advance Ruling and will not make a final determination until your advance ruling period ends which is usually 4 years after you receive the first 501(c)(3) determination letter. During this time the IRS will look to see if your organization will meet the attraction of public support factors [under IRC Sections 509(a)(1) and 170(b)(1)(A)(vi)] and/or the support test [under IRC section 509(a)(2)].