Our neighborhood association (the social entity, not the governing association) is looking to gain recognition as a non-profit organization in Wisconsin. Do you know what is required? We often try to get donations for door prizes and drawings, but find it's difficult when we don't have a tax-exempt donation letter to provide to the businesses. Any assistance is appreciated!
2007-06-07 02:28:20 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You'd have to get a 501(c)3 designation from the IRS in order to be tax-exempt and for donors to be able to deduct their contributions. From your description of the group, the group would not be eligible for that designation.
See http://www.irs.gov/publications/p557/index.html for detailed info on applying for tax-exempt status.
2007-06-07 03:30:02 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You can be classified as a nonprofit since that is what you are. But in order to allow for deductions for contributions to your group, you will have to be classified as a charity.
If your bylaws prove that you are organized and operated exclusively for a charitable cause, then you can apply for Section 501c(3) status. A charitable purpose can include a purpose beneficial to the community.
An organization applies for charitable status by filing Form 1023 with the IRS.
Form 1023
http://www.irs.gov/pub/irs-pdf/f1023.pdf
Instructions to Form 1023
http://www.irs.gov/pub/irs-pdf/i1023.pdf
2007-06-07 05:37:18 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋