Benefits of 501(c)(3) Status

Mollie Cullinane describes the benefits as having to do with tax exemptions, under Internal Revenue Code section 501(c)(3):

* exemption from Federal income tax -- we do not have enough income to be taxed, but we file anyway to establish a record;
* tax-deductible contributions -- this is worth knowing since we could encourage membership and donations when they can be tax-deductible (it would be worth generating a tax-deductible letter/form to offer donators upon receipt of goods, services, or money);
* possible exemption from state income, sales, and employment taxes -- membership dues are our only 'income' besides the money generated at the gourd auction at our annual show;
* reduced postal rates -- we checked into this and we would have to mail thousands of brochures or postcards to take advantage of this benefit, several dozen postcards is not enough;
* exemption from Federal unemployment tax -- no employees;
* tax-exempt financing -- nothing to finance as of now.

So, the biggest benefit we can make immediate use of is the tax-deductible letter or form to encourage donations for our outreach programs. Foundation Group adds another benefit which caught my eye: "Ability to apply for grants and other public or private allocations available only to IRS-recognized, 501(c)(3) organizations." Now we are talking benefit!  We can locate grants that align with our mission and hopefully be able to fund the equipment and materials. What if we could get money to fund toolbags of tools to use for gourd crafting educational seminars?