| 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 |