Starting a nonprofit organization will take a lot of time and effort. One of the first things you will need to do is apply for your 501c3 in Minnesota status. The 501c3 is a term used in the IRS tax code that allows educational, charitable and religious organizations to get a federal tax exemption. When getting this status, you will not have to worry about paying taxes on the income your charity makes. While it may sound easy to apply for and get this status, it is not. The following are some of the tips you need to use when trying to obtain a 501c3 status for your nonprofit.
Assessing Whether or Not Your Nonprofit Qualifies
The main thing you will need to worry about when trying to get a 501c3 in Minnesota is whether or not your organization qualifies. There are a number of categories that do qualify for this exemption. Charitable, religious and educational charities will be able to get this status. Your nonprofit must also be incorporated to quality for the 501c3 in Minnesota.
If you are on the fence about whether or not to incorporate your nonprofit, you need to speak with a legal professional to get some advice. They will be able to inform you about the pros and cons of incorporating. Once you have all of the information, you will be able to make the right decision.
Make The Narrative Portion of Your Application Count
Usually, the IRS will want you to fill out a long-form narrative when applying for 501c3 in Minnesota. Many people refer to this as the heart of the IRS application. In this section, you will need to work hard to convey what your nonprofit is all about and inform the IRS what type of charitable acts you perform. Rushing through this portion of your application can lead to you being denied.