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Frequently Asked Questions

It is difficult to encompass all of the information about starting a nonprofit organization within a few articles. So, we have included a list of frequently asked questions and their answers.
Does My Nonprofit Really Need to Apply for 501(c)(3) Status?
Many nonprofits do not need to apply for 501(c)(3) status. Here are two questions to ask yourself before you go through the arduous process of applying....
How Do I Apply for 501(c)(3) Status?
Applying for 501(c)(3) status is not easy. We have some suggestions and resources for you.
What is a Nonprofit?
The term, nonprofit, is used rather loosely to describe groups that come together to achieve a mission, rather than to make a profit.
How Does a Nonprofit Differ From a Business?
Here are some of the differences between a business and a nonprofit.
Do I Have to File for Tax Exempt Status to Be a Nonprofit?
Does your organization have to become a tax-exempt nonprofit?
Can a 501(c)(3) Nonprofit Sell Adspace?
Selling ads in a publication published by a nonprofit is often a good way to increase revenue. But, what are the pitfalls?
How Can I Find Low-Cost Legal Advice?
Sometimes good legal advice is crucial to starting your nonprofit organization.
Can an Organization Be Part Profit and Part Nonprofit?
It is not wise to try to have a hybrid, nonprofit/for-profit organization.
Should We Suggest Donation Levels?
Should you include suggested donation levels on your donor's return envelope?
We Have a Tax ID Number. Are We a Nonprofit?
Does having a tax id number make you a nonprofit?
Do I Have to Register to Raise Funds Online?
There are new rules governing online fundraising.
Can We Start Raising Funds or Do We Have to Register First?
It is not enough to become an IRS registered nonprofit in order to raise funds. Most states require registration too.
What Is Unrelated Business Activity?
Most nonprofits engage in some kind of business activity to help support their organization. But, what activities are related and what are unrelated? And, what are the tax implications?
Can We Receive Tax-Exempt Contributions When We Are So Tiny?
Sometimes, organizations are too small and have too few resources to become a full nonprofit. Or, their purpose is limited and temporary. How can they solicit tax-free contributions?
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