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ATTACHMENT K <br /> What is a Private Non Profit Agency? <br /> Answer:A private non profit is an organization that is incorporated under State law and whose purpose is <br /> not to make a profit, but rather to further a charitable, civic, religious, scientific, or other lawful purpose. <br /> The Secretary of State's office grants corporate status to organizations in North Carolina. <br /> What is a 501(c)(3)designation? <br /> Answer:When the agency becomes a state private non profit corporation, it can then apply for 501(c)(3) <br /> designation through the IRS. Once the IRS grants 501(c)(3)status, the organization is exempt from <br /> certain taxes and any donations to the charitable organization are tax deductible. Many individuals and <br /> organizations prefer to make donations to 501(c)(3) private non profits. <br /> Who can obtain a 501(c)(3)designation? <br /> Answer:Any organization or group can apply for 501(c)(3)status, provided their charter or mission <br /> focuses on the non profit's objective. <br /> Another option is to apply for a 509(a)(1)status which falls under the 501(c)(3) umbrella. Being a <br /> 509(a)(1)designates an organization as a tax-free public charity that receives most of its support from a <br /> governmental unit or from the general public. Becoming a 509(a)(1) provides public recognition of tax- <br /> exempt status, advance assurance to donors of deductibility of contributions, exemption from certain <br /> State and federal taxes, and non profit mailing privileges. Organizations that typically qualify are <br /> churches, educational institutions, hospitals, and governmental units. <br /> How does a Private Non Profit obtain Tax Exempt Status? <br /> EO Web Site [www.irs.gov/eon <br /> IRS TE/GE Customer Service <br /> You may direct technical and procedural questions concerning charities and other nonprofit organizations, <br /> including questions about your tax-exempt status and tax liability, to the IRS Tax Exempt and <br /> Government Entities Customer Account Services at(877)829-5500(toll-free number). <br /> If you prefer to write, you may write at: <br /> Internal Revenue Service <br /> Exempt Organizations Determinations <br /> P.O. Box 2508 <br /> Cincinnati, OH 45201 <br /> You may also contact the Taxpayer Advocate Service, an independent organization within the IRS that <br /> helps taxpayers resolve problems with the IRS and recommends changes that will prevent problems. <br /> A private non profit must apply to the IRS for tax exempt status. To qualify, applicants must complete and <br /> submit to the IRS Form 1023. Once federal tax exempt status is granted, the private non profit applies for <br /> State tax exempt status by completing Form CD-435 and submitting it to the N. C. Department of <br /> Revenue. <br /> What must a County Department of Social Services/Human Services do? <br /> Answer:Verify the Tax Exempt Letter. Check date for expiration and check if current address of agency <br /> is reflected. <br /> Revised 06-2015 <br />