Pros & Cons of
501(c)(3) Status


501(c)(3) Organizations Enjoy the Following Privileges:

Exemption from Federal Income Tax
Exemption from F.U.T.A. (federal unemployment tax)
Tax Deductibility for Donors
Eligible for Government & Foundation Grants
Eligible for Bulk Mailing Permit
Gambling Permits (in some jurisdictions)
Credibility

501(c)(3) Organizations Must Fulfill the Following Responsibilities:

Keep Adequate Records
File Required Returns
Provide Donor Substantiation
Obey Disclosure Laws
Generate Public Support
Avoid "Excess Benefits" for insiders
Shun Political Activity
Limit Legislative Activity
Limit Unrelated Business Activity
For more about the responsibilities of 501(c)(3) organizations, please
scroll down and follow the link to Keep the IRS Happy.

The chart below summarizes various kinds of tax
treatment for nonprofit and for profit organizations for
comparison purposes.


Type of Tax
For Profit
Non-Profit


Income Tax
Sole proprietor files Form 1040, Schedule C, and pays income tax on net
profit. Corporation files form 1120, and pays income tax on net profit;
employees file Form 1040 and pay income tax on salaries received
501(c)(3) non-profit files Form 990 or 990-EZ, and pays income tax only on
net profit from unrelated activities; employees of the non-profit file Form
1040 and pay income tax on salaries received

Payroll Taxes
Sole proprietorship or corporation files quarterly 941's and annual 940,
W-2's and W-3
Nonprofit files quarterly 941's and annual W-2's/W-3, but 501(c)(3)
organizations don't pay FUTA tax (Form 940)

Charitable Contributions
Grantors and contributors are not able to take a charitable contribution
deduction for cash or goods donated to an individual or to a for-profit
organization
Grantors and contributors are permitted to take a charitable contribution
deduction for cash or goods donated to a 501(c)(3) organization
KEY HOMESCHOOL ASSOCIATION INC

In Care of Name KELLY LEPINE
Address 1020 TEAKWOOD DR
HARVEY,  LA  70058-4341

IRS Subsection 501(c)(3) - A religious, educational, charitable, scientific or literary
organization.

Type of Foundation: Organization that normally receives no more than one-third
of its support from gross investment income and unrelated business income and
at the same time more than one-third of its support from contributions, fees,
and gross receipts related to exempt purposes.

Type of Organization Corporation

Deductibility Contributions are deductible

Tax I.D. Number 412242179

Exempt Since 08-2007

Nonprofit Status Expires 06-2011

Form 990 Requirement Not required to file (income less than $25,000)

Last 990 Form Filed 07-2009

Classification Professional Societies, Associations