There are many benefits to being registered under Section 501(c)(3) of the Internal Revenue Code. Chief among them is the ability to increase financial support from a charitable donor base. Individuals and businesses are much more likely to donate to a given charity if their donation is tax-deductible.  Donations are only tax deductible if made to an IRS recognized charity.  Additionally,  foundations and other grant making authorities typically prefer IRS registered charities as the recipients of their funds. Moreover, an IRS recognized charity is afforded certain local, state, and federal benefits. For instance, unlike a business, recognized charities may not be subject to income tax. Other exemptions include, but are not limited to, exemption of sales and property taxes. Make sure to consult a CPA for further information.

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