| Homeschool Leader November 2008: 501c3 Status |
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Welcome to the newsletter for homeschool group leaders
November 2008
Homeschool Leader
In this issue:
- Article on 501c3 Status for your homeschool group
- Blog Entries on
- cash surplus
- volunteers
- nonprofit status for a family homeschool
When to Become a 501c3?
By Carol L. Topp, CPA
HomeschoolCPA is frequently asked,
“When does my homeschool organization need to file for 501c3 status?”
or a similar question,
“At what dollar amount do we need to file with the IRS?”
The IRS allows a small nonprofit organization the benefits of tax exemption without filing the Form 1023 if their annual gross revenue is normally not more than $5,000. (See Instructions for IRS Form 1023, page 1). $5,000 is a pretty small organization; it doesn’t take much to bring in $5,000 a year. Note that the measure is gross revenue, meaning all your revenue, not just your profit.
So what should you do when your organization starts bringing in more than $5,000 a year?
If your organization has gross revenue of more than $5,000 annually, there are four options:
1. File form 1023 with the IRS and become a tax exempt 501c3 "qualified charity” (but get help!)
2. File for another type of tax exempt status with the IRS, such as 501c4, a social welfare organization
3. Reorganize your group to stay small (i.e. gross income under $5,000 per year)
4. Pay income taxes
Since option 4, paying income tax, doesn't sound like fun, you should read the rest of the article by clicking here.
To read more about 501c3 status for homeschool groups, visit my website
www.HomeschoolCPA.com and go to the Articles page.
Or go directly to these articles:
Do we need 501c3 status?
Are you ready for 501c3 Application?
I hear from homeschool leaders across the country and I get asked a lot of questions, so I have refocused my blog to be a question and answer blog for homeschool leaders. Each entry is a question from a homeschool leader like you and covers topics such as nonprofit organizations, leadership and finances. Some recent entries include:
What to do with a surplus of cash?
Rewarding Volunteers
Can my family homeschool be a nonprofit?
This is a monthly newsletter written by Carol Topp, CPA for homeschool group leaders. Please pass it along to other homeschool leaders. Thanks for reading!