- Clients will sometimes ask about what a non-profit is and how to get one
- A non-profit is an entity classified under Internal Revenue Code 501(c)(3)
- If the IRS grants an application for non-profit status, you become a “charitable organization”
- Such organizations do not have to pay income tax on income
- Also, donations to that entity are tax deductible for the donor
- However, such entities can only operate for charitable purposes such as providing shelter and food for the homeless, for example
- Other examples: certain sports clubs for children, or amateur sports in international competition.
