Aside from the societal benefits, there are many legal advantages to being declared a nonprofit corporation. Among them are tax exemption, the right to solicit donations, qualification for grants, employee benefits, and lower postal rates.
Nonprofit corporations are exempt from paying federal, state, local, and certain employment taxes.
They are also eligible for tax-deductible charitable donations. This gives added appeal to donors because they know that their donations will be tax-deductible. This is especially beneficial because nonprofits have the right to solicit those donations! As a nonprofit, fundraising, including donations and grants, will be a major source of income during every stage of the business.
Saving money is also an important part of a nonprofit corporation, and lower postal rates as a bulk mailer is definitely in that category. As is the fact that nonprofits are not required to pay unemployment compensation, but can offer health and life insurance.
So with that, start your 501c3 today! We can help you all along the way, just ask our previous clients. We know every step of starting a nonprofit and are familiar with all the types of nonprofits too. Let us help you so you can help the world.