Can my organization charge for goods or services?
Yes. However, the fees should be for provision of services which help to achieve the exempt purpose. These fees should be reduced in comparison with a commercial entity that may offer the same service. If fees are charged for any goods or services that do not directly involve the exempt services, the revenue may be subject to unrelated business income taxes.
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Can the organizers of a newly formed 501(C)(3) take a tax deduction for personally paying the organization’s expenses during its first year in operation?
Yes, founders, initial board members, and donors may claim a deduction for contributions made to set up and establish the organization on their individual or corporate tax return once the organization has obtained the 501(C)(3) status. The ...
How do I look up our 501(C)(3) Organization on the IRS website?
You can search existing 501(C) organization on the IRS website here: https://www.irs.gov/charities-non-profits/tax-exempt-organization-search You can also search for information about an organization's tax-exempt status and filings including: ...
Deducting Startup costs of a 501(C)(3) Nonprofit
Founders, initial board members, and donors may claim a deduction for contributions made to set up and establish the organization on their individual or corporate tax return once the organization has obtained the 501(C)(3) status. The organization ...
What is a 501(c)(3)?
501(C)(3) is an IRS designation identifying tax-exempt organizations. The name comes from the fact that this type of organization is defined under Section 501(c) of Title 26 of the U.S. Code. Receiving 501(C)(3) status requires an organization to ...
Advantages of a 501(C)(3)
Advantages of a 501(C)(3) The recognition of your organization as a 501(c)(3) tax-exempt entity by the Internal Revenue Service (IRS) offers many advantages in helping your organization receive donations and establish credibility. Tax Deduction for ...