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Non profit organization application

One of the most important characteristics of non-profit organizations is that they are not owned by their founders. Unlike establishing a for-profit company, the founder cannot accept company profit dividends. However, the founder can provide themselves with a reasonable salary. Because non-profit organizations are open to the public, the company's finances and taxes should also be open to the public. One disadvantage of establishing a non-profit organization is the need to fill out more documents and comply with more company regulations.

Among many types of non-profit organizations, the organization that enjoys the most tax benefits is the 501 (c) (3) type, which is established under Section 501 (c) (3) of the tax law. It can be exempted from income tax, sales tax, and even property tax. This organization can also accept tax deductible donations, enjoy lower shipping costs, and receive funding. Therefore, this type of organization is the organization that the most people hope to establish, and it is also the organization that is most difficult to obtain approval. Charitable organizations are more likely to receive such tax-free treatment. The most famous Chinese charity organization, Tzu Chi, is such an organization. However, some social organizations can also be approved as such organizations.

Article 501 (c) (3) states that non-profit organizations must serve religious, charitable, educational, literary, scientific, or other public interest purposes. These organizations are considered to serve the public. If taxpayers donate to these organizations, they can offset their income tax. Without this, many non-profit organizations cannot receive sufficient donations. The 78th publication of the National Taxation Bureau printed a list of these institutions, which can also be found on the website of the National Taxation Bureau by the general public.

Introduction to non-profit organizations
The advantages of establishing a non-profit organization

1)、Non profit companies, like for-profit companies, have unlimited life and are also protected by the same limited liability.

2)、The biggest benefit of non-profit organizations is that they can be exempt from various taxes.

3)、Donators are eligible for tax deduction.

4)、Enjoy lower postage discounts.

5)、Charitable organizations are more likely to receive funding.

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