The benefit of non-profit status for Federal Income tax purposes is the deductibility from adjusted gross income as an itemized deduction for individuals. Also, the individual contributor can be assured that his/her contributions must be used to fulfill the stated objectives of the 501(c)(3) corporation and that if the 501(c)(3) is ever dissolved the money cannot be given to any officer or employee of the charitable organization. In the case of the Affton Christian Food Pantry, the assets (money) would revert to the member churches.
For the 501(c)(3) not-for-profit corporation (ACFP), the benefit is that the corporation is not subject to Federal or State income taxes on the contributions received. This allows the corporation to utilize the full amount of money it raises for the purpose or objectives of the corporation (in the case of the ACFP, providing food and assistance to the needy of our community). Maintaining this status also allows the ACFP to benefit the community by being eligible to receive its portion of the food donated to the needy through annual food drives, i.e., Scouting for Food Drive by the St. Louis Area Council of Boy Scouts, in addition to other food drives at schools and organizations in the Affton area. As an official 501(c)(3) Corporation, the ACFP is also eligible to apply for various cash grants from other charitable foundations and organizations.
No responses yet