Charity Program

A charity program is typically classified as a 501(c)3 non-profit entity that holds the designation of a tax-exempt public entity or private foundation from the federal and state government. Charity programs that qualify for this designation fall under categories of: religion, education, scientific, literary, testing for public safety, amateur sports, and prevention of cruelty to children and animals. The benefits a nonprofit organization receives from the 501(c) 3 designation in addition to tax exception are: Possible exceptions from property taxes, the ability to apply for government grants and/or private allocations, and discounts on United States postal mailing rates. Charitable corporations in the US are growing each year.

Charitable corporations that are interested in receiving that designation should fill out IRS form 1023. This form allows the nonprofit organization to apply for non-profit tax exempt status. The benefits a donator receives when giving to a charity program are also in a form of tax exemption by way of income write offs. If a nonprofit organization donator itemizes on his/her federal tax return, they will be able to claim a tax write off for the value of the item or money donated to any charity programs that have the exempt designation.

The IRS typically requires charity programs to wait four to six months for official approval of their status. Charitable corporations without that particular designation will not be able to offer a tax write off benefit to their donators. This could result in a lower number of participating donators, which in turn renders the charity program less useful in pursuing its goal. A charitable corporation can state they are a tax-exempt organization if they are in the process of becoming designated a charitable corporation, but the donator cannot realize the full tax write off until the application process in complete and approved.

Christians interested in donating to a charity program should carefully research the allocation of each charity program's funds before making a donation. If a Christian wants to give to a charitable corporation, they should be sure that they are giving out of a heart for love, not the tax write off. They must also feel compelled to donate, not from their pastor or the charitable corporation, but from God. The Bible says in 2 Corinthians 9:7 "Every man giveth according as he purposeth in his heart. So let him give; not grudgingly, or of necessity: for God loveth a cheerful giver."

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