WHAT IS 501(c)(3) STATUS?
Section 501(c)(3) of the US Internal Revenue Code allows for federal tax exemption of nonprofit organizations, specifically those that are considered public charities, private foundations or private operating foundations.
WHY DO YOU NEED 501(c)(3)?
Nonprofit organizations, including school booster clubs, must have 501(c)(3) tax-exempt status to:
- Participate in fundraising programs like grocery scrip, Disney and ESPN grant programs
- Receive donations that are tax-deductible on the donor’s tax return
- Be exempt from paying federal (and sometimes state) income tax on their earnings
- Apply for exemption from state sales tax
- Qualify for state gambling licenses to operate BINGO and other games of chance
HOW DOES PBUSA MAKE 501(c)(3) STATUS SO EASY?
We have a group exemption
PBUSA has a group tax exemption from the IRS meaning that when PBUSA approves a new member, that member is immediately recognized as having 501(c)(3) tax-exempt status under PBUSA’s group exemption.
No need to file a 1023
PBUSA members do not need to file IRS Form 1023EZ or 1023, and do not have to pay any IRS filing fees.
We report your status
PBUSA updates the IRS on new members to add to the IRS official list of tax exempt organizations found on IRS Select Check, Guidestar, and in the IRS Business Master File (BMF).