Why Form 2220 Nonprofit 2022-2023

Instructions and Help about Why Form 2220 Nonprofit

Hi my name is Toby Mathis and one of the partners at Anderson business advisors and today we're going to talk about how you can set up your own nonprofit now when I say nonprofit we're really talking about charitable organizations there's about 30 of them underneath the United States Code that are that you're able to get exemption for it but I'm going to zero in like a laser beam on one of them and that's when we all know and love it's called the 501 C 3 and a 501 C 3 is set up for charitable religious or educational purposes there's a few other things like amateur sports and things like that but the big ones are charitable education and religious if you're doing something that's benefiting Society chances are it's gonna fit underneath this category you're providing assistance to veterans boom if you're advancing a religion boom if you're a school or you're educating or whatever those things are boom you're underneath that 501c3 and the reason this is important is because somebody gives you money they can write it off as a charitable donation it's the only one where you can do that so the 501c3 is where we tend to focus you can set up your own there's literally over 1.7 million of these in the United States and they're probably one of the most underutilized entities that exists now to set one up there's only three steps it's actually very very simple when you break it down into pieces and the easiest way to look at this is we always have three categories that entities follow into no matter whether you're for-profit or not-for-profit and that is we have to deal with the states we have to deal with third parties like judges...