Ask an Advisor Answers

Question: Dear Sir/Madam,
First, I would like to introduce myself. I am member of a Buddhist Youth Association.
My organization is a Buddhist Scout organization for youth. Other adults members and I are all volunteers. We teach a group of about 200 Vietnamese children from 7 to 17 years of age on every Sunday after the worship from 9 AM to 2 PM.
Our mission is to educate the children to become productive Buddhist citizens who would be able to contribute to the growth and thrive of the United States in the future.
Our activities are similar to Boys and Girls Scout, except Buddhism is the association's philosophy.
Secondly, I would like to ask for an advice. Recently, there are 2 different opinions/trends in my group:
1) Should we apply for a non-profit organization with tax-exempt status with State and Federal governments?
2) Should we only apply for a non-profit organization at the State level because we do not call for or apply for any governmental fund/grant ?
(Financial source: every youth members contributes $150.00/year ($12.50/month) for all the year-round activities including youth activities such as studying, leadership training, field trips, outdoor activities, cultural activities, camping, awards, and every Sunday meals).

On behalf of the organization, I would like to ask there is a mandatory to apply our organization at the federal level or not? Or it would be OK if we just maintain at the state level? Please help ! Your opinion, advice, and time are appreciated.
Wish you a joyful and peaceful holiday season.
Best Regards,

Answer: When to seek nonprofit status and tax exemption

Question Date: Tue, 12/24/2013