Thursday, August 28, 2014

Hey non-profits, do you know what your IRS tax classification is? It might be affecting your fundraising efforts.

In the United States, there are different classifications for non-profits. A 501(c)3 allows festival and event donors and sponsors to take their financial contribution off their taxes. Not all festivals and events fall into that category. Some claim to be non-profits, but don't have a 501c3 exemption code. Others have not followed up with their states to be tax exempt. Still others are simply - for profit.

For those which desire to be non-profit, it's important to make sure you can give something back to your sponsors. Look at your articles of incorporation. What do they say?

MARKETING TIP: When you're out fundraising, you will have more success if you are a 501c3. To find out how to set up a 501c3 or change from a 501c4, call Internal Revenue Service. Be sure to file the proper paperwork with your state office which handles corporations. It's worth the effort.

No comments: