Section 501(c)(3) is the portion of the United States Internal Revenue Code that allows for federal tax exemption of nonprofit organizations, specifically those that are considered public charities, private foundations or private operating foundations. It is regulated and administered by the U.S. Department of Treasury through the Internal Revenue Service.
“Charitable” is broadly defined as being established for purposes that are religious, educational, charitable, scientif ic, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals and children. A tax-exempt charitable organization can provide a world of good for a number of causes in Illinois and beyond. Organizations described in section 501(c)(3) are prohibited, however, from conducting political campaign activities to intervene in elections to public office.
At the Law Office of Paul M. Marriett, we have successfully formed various charitable organizations, ranging from domestic charities within the Rockford area that are serving underprivileged youths to international charities that actively assist Haiti in disaster relief. The Law Office of Paul M. Marriett also recently sponsored a BMX donation program in Moline, Illinois. If you have a question for a professional and skilled lawyer regarding your 501c3 Charity Formation, we have an answer.
There are three major governmental bodies that every charitable organization operating in the Illinois must engage before solicitation or other activity within the state. A fourth governmental entity, the Illinois Department of Revenue, should also be contacted if the charitable organization wishes to apply for exemption from state sales tax. Those entities are:
- Office of the Illinois Attorney General, Charitable Trust Bureau
- Secretary of State, Department of Business Services, Corporation Division
- Internal Revenue Service
Once the organization receives an exemption from the Internal Revenue Service, it is automatically exempt from paying state income tax, with certain exceptions.
Contact the Law Office of Paul M. Marriett about your 501c3 Charity
To talk to an experienced attorney about legal matters involving the creation of tax-exempt charities in Rockford, Machesney Park, Loves Park, and Winnebago County, contact the Law Office of Paul M. Marriett at (815) 391-0089 or reach us by e-mail for a free business law consultation from a qualified lawyer.