"Nonprofit organizations that dedicate their resources to charitable, religious, scientific, or educational purposes may apply for 501(c)(3) federal tax exemption as a public charity. Successful 501(c)(3) public charity applicants enjoy many benefits not available to unclassified organizations. This fact sheet explains some of those benefits and briefly describes the 501(c)(3) application process.
501(c)(3) organizations:
. Do not pay federal corporate income tax except on income derived from unrelated business income. With this exemption, an organization can save 15% - 35% of its taxable income.
. In most instances, do not pay state corporate income, franchise, excise, use, and sales tax. The breadth of state tax exemptions varies state by state. Interested organizations.........."
By Alliance for Justice
Continue reading at:
http://www.afj.org/assets/resources/nap/501cs-benefits.pdf