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<br />ATTACHMENT K <br />501(c)(3) and TAX EXEMPT STATUS <br /> <br />Orange County Department of Social Services <br /> <br />What is a Private Non Profit Agency? <br /> <br />Answer: A private non profit is an organization that is incorporated under State law and whose purpose is <br />not to make a profit, but rather to further a charitable, civic, religious, scientific, or other lawful purpose. <br />The Secretary of State's office grants corporate status to organizations in North Carolina. <br /> <br />What is a 501(c)(3) designation? <br /> <br />Answer: When the agency becomes a state private non profit corporation, it can then apply for 501(c)(3) <br />designation through the IRS. Once the IRS grants 501(c)(3) status, the organization is exempt from <br />certain taxes and any donations to the charitable organization are tax deductible. Many individuals and <br />organizations prefer to make donations to 501(c)(3) private non profits. <br /> <br />Who can obtain a 501(c)(3) designation? <br /> <br />Answer: Any organization or group can apply for 501(c)(3) status, provided their charter or mission <br />focuses on the non profit’s objective. <br /> <br />Another option is to apply for a 509(a)(1) status which falls under the 501(c)(3) umbrella. Being a <br />509(a)(1) designates an organization as a tax-free public charity that receives most of its support from a <br />governmental unit or from the general public. Becoming a 509(a)(1) provides public recognition of tax- <br />exempt status, advance assurance to donors of deductibility of contributions, exemption from certain State <br />and federal taxes, and non profit mailing privileges. Organizations that typically qualify are churches, <br />educational institutions, hospitals, and governmental units. <br /> <br />To learn more about non profits, visit www.irs.gov, or call the tax-exempt helpline at 877-829-4933. <br /> <br />How does a Private Non Profit obtain Tax Exempt Status? <br /> <br />A private non profit must apply to the IRS for tax exempt status. To qualify, applicants must complete <br />and submit to the IRS Form 1023. Once federal tax exempt status is granted, the private non profit applies <br />for State tax exempt status by completing Form CD-435 and submitting it to the N. C. Department of <br />Revenue. <br /> <br /> <br /> <br />Please attach proof of 501(c)(3) or IRS tax-exempt status to this page. <br /> <br />DocuSign Envelope ID: 2BDD55A6-AB10-4CEE-BD64-A15242793F1F