It is not cheap, nor is it easy, but it is an important mile stone in the life of a non-profit. Being granted tax exempt status, 501(c)(3) in IRS terms, allows a non-profit organization to receive donations and provide to the donors a charitable contribution receipt. This allows donors to use these donations as a tax deduction on their annual personal income tax.
The IRS granted Loving Community our tax exempt status as a public charity on February 19, 2015 (insert fireworks and applause here!) Their determination letter dates back to the start up date of Loving Community, June 21, 2014.
As previously mentioned, it is not cheap or easy! The filing fee is $850 and the legal fees another $1,000. The document preparation takes up to 100 hours. Then there is the wait — typically 8 months to see whether you are approved or more documentation is needed. Our application passed on the first try (again, insert fireworks and applause!)
Special thanks goes out to our prayer partners who kept this request before God. Also, our friends Paul Parker, CPA and David Apple, JD for their tax and legal advice in filing. Legal Zoom got us to the finish line, along with a little hard work on my part. Glad to have this behind us!
Over the last eight months we have been profoundly blessed to be part of the Community Ministries International missions family. They have served as our missions agency in receipting our donations, doing our accounting work, and serving as our 501(c)(3) umbrella. At a future date we will determine a time for us to begin receipting donations via Loving Community, but for present, existing donors will continue to give through CMI.
Now to right size what has happened.
Yes, this is important and it allows for us to receive financial resources in the most advantageous way for a donor. I am grateful for that! However, resources, though necessary to do ministry, are not our goal. Our goal is to be good neighbors by connecting people into relationships and serving the needs of our community.
May it be so via this stepping stone in God’s Kingdom’s work.
Loving Community,
Jim
John 1:14
