501c3 Compliance

Taxes

501c3 Organizations must file the 990-N postcard in order to retain their 501c3 Status.

• http://www.publiccounsel.org/publications/epostcard.pdf

Generating Income

• Being paid to advertise
  • http://www.rurdev.usda.gov/rbs/ezec/toolbox/501c3factsheet.html
  • Many organizations keep their members informed with a regular newsletter or via the website, and help defray the costs by accepting paid advertising. Unfortunately, the IRS considers this advertising income to be unrelated to exempt purposes, and therefore taxable. Up to $1,000 in unrelated income can be earned without having to pay tax, but an organization that receives at least $1,000 in advertising or other unrelated receipts must file Form 990-T, and pay any tax due.