Did You Know? Non-profits For Use With a Charitable Cause Are Not Automatically Exempt from Federal Taxation

Did you know? Non-profits for use with a charitable cause are not automatically exempt from federal taxation

Individuals organizing a Pennsylvania non-profit corporation for use with a charitable cause are oftentimes surprised to learn that such entity is not automatically exempt from federal taxation. Rather, to obtain such tax-exempt status, the organization must apply for, and be granted by the Internal Revenue Service, recognition as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.

The attorneys in our Business & Finance Department regularly assist non-profit entities with their completion of such application and their responses to any questions about the application that are received from the Internal Revenue Service. We also advise clients about when a simplified version of the application (the Form 1023-EZ) can be utilized.

If you would like to learn more about these services, please contact Paul T. Rushton (prushton@rjglaw.com) or MaryJo Kishel (mkishel@rjglaw.com) of our Business & Finance Department.