Here is quick overview on benefits and liabilities of non-profit status: "Benefits of Non-profit status:
There are several benefits that are available to a corporation that is established as a non-profit. These are as follows: A non-profit corporation may apply for and receive exemption from federal income tax. It is very important to note that a non-profit corporation in and of itself is not automatically exempt from federal income tax, but must go through the application process to receive the exemption. Securities that are issued by non-profit corporations may be exempt from federal regulation. Non-profit corporations may be considered for reduced postal rates. Liabilities of Non-profit status: There are also several liabilities associated with non-profit status such as: Non-profit organizations normally must rely on public financial support (including membership fees if applicable, grants, personal donations, etc..) which may or may not be forthcoming or easily obtainable. Since there is normally not a product or service that is being sold, the non-profit is at the mercy of the consciousness of the general public, which is not a reliable or consistent source of revenue. Most non-profit corporations are not qualified to receive equity or debt financing. Non-profits cannot distribute profits to its members, which may hinder them from enticing members to join their organization. Definition of Tax-Exempt Status: A tax exempt enterprise is a non-profit entity that is exempt from federal income taxes, therefore, is not required to pay taxes on any income generated during the year. When an individual or a corporation contributes to a tax-exempt enterprise, that individual or corporation may take a tax deduction for their contribution." Reference: http://www.sbpm.gwu.edu/casb/Research109.htm --- Doug Younker <[EMAIL PROTECTED]> wrote: > Respectfully, if that is proper and legal, why do so > many organizations go > through the effort, to obtain a non profit status? > Many of them that do > expend the effort often, have in their organization > several members of the > clergy, not to mention lay members of many faiths. > Please excuse a cynic, > thanks. > Doug > ----- Original Message ----- > From: "Gustl Steiner-Zehender" <[EMAIL PROTECTED]> > To: "Keith Addison" <[EMAIL PROTECTED]> > Sent: Thursday, December 16, 2004 8:52 AM > Subject: Re[3]: [Biofuel] Martin's Job > > > : Hallo, > : > : Just to reiterate. If you need a tax > deductible receipt make the > : check or money order out to "Religious Order of > Friends" and in the > : memo portion put "JtF Fund" and it will go > where it should and you > : will receive your receipt from the religious > order. All of this is > : strictly above board and legal. Earmarked funds > go to where they are > : earmarked. Just let me know when you contact me > that you need a tax > : deductible receipt. > : > : Happy Happy, > : > : Gustl > > > > --- > Outgoing mail is certified Virus Free. > Checked by AVG anti-virus system > (http://www.grisoft.com). > Version: 6.0.809 / Virus Database: 551 - Release > Date: 12/09/2004 > > _______________________________________________ > Biofuel mailing list > [EMAIL PROTECTED] > http://wwia.org/mailman/listinfo.cgi/biofuel > > Biofuel at Journey to Forever: > http://journeytoforever.org/biofuel.html > > Biofuel archives at Infoarchive.net (searchable): > http://infoarchive.net/sgroup/biofuel/ > __________________________________ Do you Yahoo!? Jazz up your holiday email with celebrity designs. Learn more. http://celebrity.mail.yahoo.com _______________________________________________ Biofuel mailing list [EMAIL PROTECTED] http://wwia.org/mailman/listinfo.cgi/biofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuel archives at Infoarchive.net (searchable): http://infoarchive.net/sgroup/biofuel/
