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Section 4. Understanding Nonprofit Status and Tax Exemption

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___You understand the importance of legal counsel when applying for nonprofit status and tax-exemption

___You understand that nonprofit status is granted by the state, while the federal government grants IRS tax-exemption

___You know the three types of federally recognized nonprofit organizations are a corporation, an unincorporated organization, and a trust

___You understand that becoming a corporation is the most common choice for community organizations, because it is well understood, promotes continuity, and limits personal liability

___You know that 501(c)(3) is the "charitable tax-exemption"

___You understand that it allows exemption from federal corporate and income taxes, and that it allows solicitation of tax-deductible contributions

___You know there are a total of 26 different exemptions for different purposes

___You understand that there are three ways to become tax-exempt: application, automatic recognition, and using a fiscal conduit

___You understand the advantages of nonprofit status

___You understand the advantages of federal tax-exemption

___You understand the disadvantages of nonprofit and tax-exempt status

___You understand when you should (and when you shouldn't) consider applying for such status

___You understand how to apply for nonprofit status

___You understand how to apply for federal tax-exemption

___You know where to find inexpensive assistance