Donors that give to 501c3 nonprofits can receive a tax write-off for donations they make to qualified tax-exempt nonprofits throughout the course of the year. Qualified 501c3 tax-exempt nonprofits can buy items that help further their charitable purpose without being required to pay sales taxes on those items.
501c3 nonprofits can accept donations from individuals and businesses to help them accomplish their mission.
For example, a nonprofit formed to educate youth on sports safety would likely attract corporate sponsorships from energy drink companies, sports apparel stores, and even athletic trainers whose donations could be used to purchase uniforms for the students, athletic gear, host, and seminars, as well as hire staff and open an office.
Generally speaking, forming a nonprofit can protect its founder, board members and volunteers from being sued individually in lawsuits as a result of the activities of the nonprofit (some exceptions apply which we will discuss later).
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