Benefits of a Family Foundation

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Article previously published December 3, 2023. Updated December 2, 2024. A family foundation is a type of 501(c)(3) tax-exempt nonprofit organization that allows its founders to set up a formalized charitable grantmaking enterprise funded by one individual or a few family members. It is usually funded with family assets. The family foundation is a flexible […]

Year-End Giving – How Do Charitable Donations Affect My Taxes?

A small tree grows out of a clear glass jar filled with coins, placed on a wooden surface, against a blurred green and yellow background. This scene symbolizes the growth you can achieve by understanding how charitable donations affect your taxes.

How do charitable donations affect my taxes?
After researching a charitable organization and deciding where to give your money, you should also consider how the charitable donation will affect your taxes. Charitable donations are a popular tax write-off, but make sure you understand what can be deducted and how to properly assess the value of your donation…

What is UBIT (Unrelated Business Income Tax)?

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A 501(c)(3) nonprofit is not taxed on revenue that comes from an activity that is substantially related to the organization’s tax-exempt purpose (charitable, educational, religious, scientific, or other). But, some activities that the nonprofit undertakes may subject it to tax. If a nonprofit conducts an unrelated trade or business to generate income, the nonprofit may […]

What are the benefits of having 501(c)(3) tax-exempt status?

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Having 501(c)3) IRS tax exempt status provides a number of benefits: exemption from federal income tax; tax-deductible contributions; possible exemption from state income, sales, and employment taxes; reduced postal rates; exemption from federal unemployment tax; and tax-exempt financing.

Nonprofit Law Basics: Do Nonprofits File Tax Returns? What is a 990?

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Most nonprofit organizations are required to file annual reporting returns with the IRS. Even though tax-exempt nonprofit organizations do not pay federal taxes (that is what “tax-exempt” means), most do have to file an informational return with the IRS. This annual reporting return is called a Form 990…

Nonprofit Q&A: What is Group Exemption?

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What is a group exemption?

The IRS will allow organizations that are affiliated with a central organization to apply for tax-exempt status as a group. This not only saves time for the organizations applying, but it also relieves the IRS of reviewing each subordinate organization’s application for tax-exempt status.