Charitable Foundation

A charitable foundation is an organization that is typically non-profit with 501(c)3 IRS status, and uses the profits to help the community and the citizens in a humanitarian way approved by the federal government. Charitable foundations must be a public charity or private foundation. In order to qualify for IRS 501(c) 3 status, the charitable foundation must be themed religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports, and prevention of cruelty to children's and animals. Christian organizations fall under the religious guidelines set forth by the IRS.

Donations made to charity allow the donator to take a tax deduction on their federal itemized tax return. This tax benefit encourages taxpayers to donate money, and items to 501(c)3 charitable foundations. The 501(c)3 organization also receives exemption for federal and state income taxes. Certain charities are also entitled to exemption from property taxes. One that is interested in purchasing property should check with their state's Department of Treasury to see if exemption requirements are met. These organizations also receive discounts on United States Postal service bulk mailing rates, and are allowed to apply for governmental or private grants.

In order to become a 501(c)3 charitable foundation, an organization must complete an IRS form 1023. The IRS form 1023 should be complete with fee and sent into the IRS for 501(c)3 status approval. The IRS form 1023 is approximately 25-75 pages in length and takes roughly 100 hours to fill out. The time it takes for the IRS to grant 501(c)3 approval typically is four to six months. For charities to remain in their IRS non-profit status, they must capitulate to the IRS by providing all financial records to the government when audited, and must report major changes in business income and/ or expansion.

Christians should evaluate their hearts when it comes to offering assistance to a charitable foundation to help their cause. A Christian can give to a variety of charitable foundations, whether they fall under the "religious" category or not. The Bible says in 2 Corinthians 9:7 "Every man according as he purposeth in his heart, so let him give; not grudgingly, or of necessity: for God loveth a cheerful giver". In other wards, Christians should give their money, time or items wherever God places on their heart to give. Many times this will be a non-religious organization. Give cheerfully from the heart, and God will smile from up above.

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