Chapter Tax Exempt Status 501(c)(3)
Joyce Chastain, SPHR - President-Elect
Have you been thinking it’s time to take your chapter to the next step in the nonprofit association world and gaining tax exempt status? If you haven’t, there really are a lot of great reasons to do so.
For instance, if your chapter is classified as a 501(c)(3), you will be able to:
- Be exempt from all federal corporate income tax,
- Be exempt from all state sales tax,
- Offer your members, sponsors, and supporters a tax deduction for their charitable donations, and
- Gain eligibility to apply for and receive various federal and state grants.
Most sponsors or organizations won’t provide funds for nonprofits that are not 501(c)(3) designated. So, don’t leave that hard earned money on the table if you don’t have to!
All SHRM chapters provide the same types of services in terms of member education, certification support, scholarship assistance and financial contributions to charitable groups such as the SHRM Foundation. Since the IRS has recognized these services as educational and charitable, and therefore tax exempt, it makes sense to go for the 501(c)(3).
Follow the lead of your fellow chapters, HR of Martin County, St. Lucie County HR Association and the Treasure Coast HR Association, in obtaining 501(c)(3) status for your chapter.
If your chapter is considering achieving tax exempt status, one of our chapter members who have significant experience in this area, Louise Auclair Sikorski, MSHRM, PHR, would be happy to serve as a resource. Contact Louise at (772) 287-6432 or Lpa@gate.net.
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