What 501(c)3 is and WHY it matters

In today’s episode of our podcast, we are going to discuss what 501(c)3 is -- something that you might have heard of many times now, and why it matters. I know that today’s content might be a bit dry, but if you are ever inspired to start an organization or an ensemble like Jennifer Kane, Founder and Artistic Director of NOVA Women’s Choral Project and our guest in episode 16, or to start a publishing company like our next week’s guest Brittney Boykin -- oh, that’s a spoiler alarm! --  this episode is something for you.In short, 501(c)3 is a specific tax category for nonprofit organizations in the U.S. Once your organization meets the requirements of section 501(c)3, people giving you money for your charitable cause will receive a tax deduction for their donation, as permitted by laws.I know the language sounds a bit crazy here, but don’t worry as I will break everything into simple and bite-sized information for you. We are going to do so in three big parts today: Part I: the historical background of 501c3; This practice actually predates the formation of the nation as the first European settlers chose to start voluntary charitable initiatives without the governmental intervention.Part II: why it is important for your charitable cause to meet those requirements Other than your donors will receive tax-deductibles, a lot of major grants do require that the applicant organizations / ensembles have met the 501c3 requirements.Part III: a very quick overview of how to apply for and obtain the status, if you have a startup ensemble or organization.STATE LEVEL: being a not for profit company (being incorporated) in your state, and meet your state’s requirementsFEDERAL LEVEL: apply for a EIN (which takes 5 minutes!) and use the 1023-EZ form for your 501c3 application if you don’t expect to receive more than $50,000 donation annual for three years.All About Chaowen Ting