Six Ways to Avoid Losing Tax-Exempt Status
by Ryan R. Morton Among the many advantages of forming a 501(c)(3) not-for-profit organization is the freedom to collect income without paying federal or state taxes. That tax-exempt status is not guaranteed, however. Not-for-Profits (NFPs) must be wary of certain activities that could result in losing that financially beneficial status. Private Benefit Since the 501(c)(3) designation often attaches to churches, …