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DocuSign Envelope ID:BC6E8913-CCF6-4358-9785-EOFD20F10E29 <br /> ATTACHMENT K <br /> 501(c)(3) and TAX EXEMPT STATUS <br /> Orange County Department of Social Services <br /> What is a Private Non Profit Agency? <br /> Answer: A private non profit is an organization that is incorporated under State law and whose <br /> purpose is not to make a profit, but rather to further a charitable, civic, religious, scientific, or <br /> other lawful purpose. The Secretary of State's office grants corporate status to organizations in <br /> North Carolina. <br /> What is a 501(c)(3) designation? <br /> Answer: When the agency becomes a state private non profit corporation, it can then apply for <br /> 501(c)(3) designation through the IRS. Once the IRS grants 501(c)(3) status, the organization is <br /> exempt from certain taxes and any donations to the charitable organization are tax deductible. <br /> Many individuals and organizations prefer to make donations to 501(c)(3) private non profits. <br /> Who can obtain a 501(c)(3) designation? <br /> Answer: Any organization or group can apply for 501(c)(3) status, provided their charter or <br /> mission focuses on the non profit's objective. <br /> Another option is to apply for a 509(a)(1) status which falls under the 501(c)(3) umbrella. Being <br /> a 509(a)(1) designates an organization as a tax-free public charity that receives most of its <br /> support from a governmental unit or from the general public. Becoming a 509(a)(1) provides <br /> public recognition of tax-exempt status, advance assurance to donors of deductibility of <br /> contributions, exemption from certain State and federal taxes, and non profit mailing privileges. <br /> Organizations that typically qualify are churches, educational institutions, hospitals, and <br /> governmental units. <br /> To learn more about non profits, visit www.irs.gov, or call the tax-exempt helpline at 877-829- <br /> 4933. <br /> How does a Private Non Profit obtain Tax Exempt Status? <br /> A private non profit must apply to the IRS for tax exempt status. To qualify, applicants must <br /> complete and submit to the IRS Form 1023. Once federal tax exempt status is granted, the <br /> private non profit applies for State tax exempt status by completing Form CD-435 and <br /> submitting it to the N. C. Department of Revenue. <br /> • <br /> Please attach proof of 501(c)(3) or IRS tax-exempt status to this page. <br />