• Public recognition of nonprofit 501(c)(3) tax-exempt status
• Advance assurance to donors of deductibility of contributions
• Eligible to receive federal, state and local grants
• Exemption from federal taxes and tax deductions for contributors
• Exemption from state income taxes, sales taxes and property taxes
• Non-profit mailing privileges, and cheaper classified rates
• Free radio, television and print "public service announcements"

I did't know but not oly the churches can have the 501c3 status, different kinds of organizations that qualify for tax exemption under code section 501(c) are: Churches, synagogues, mosques, temples, interchurch organizations, integrated auxiliaries of churches, non-profit hospitals and their auxiliaries, non-profit clinics and medical research facilities, colleges, universities, private schools, non-profit day care centers and preschools, adult education and community schools, legal aid organizations, historical societies, environmental organizations, museums, zoos, symphonies, orchestras and bands, opera groups, non-profit theater, dance and other performance groups, non-profit marriage, personal and vocational counseling, non-profit drug/alcohol abuse prevention/treatment/rehabilitation, youth organizations, humane societies, scholarship funds, aid to the homeless, aid to the handicapped, aid to the elderly, combating prejudice and discrimination, civil rights organizations, evangelist and missionary groups, public television and radio.

Non-Profits seek recognition of 501(c)(3) exempt status from the IRS because such recognition provides many benefits. This is crucial for the prosperity of the Organization, and also that the Directors of the organization, as well as its donors and contributors, are certain that the Organization is eligible for exemption and the many tax-preferred provisions that congress has created for such organizations.

Federal_501(c)3)_Tax_Exempt_Status: Forming a nonprofit organization does not guarantee tax-exempt status. To obtain tax-exempt status you must apply to the Internal Revenue Service TE/GE Division State_Tax_Exempt_Status: Many states require an application process for exemption from State Income tax. This is required even though you have received Exempt status from the Internal Revenue Service. Moreover, most states require Annual Corporation filing for non-profit organizations. State Sales Tax Exemption : Your organization may be eligible for exemption from State Sales Tax.
State Registration for Soliciting Contributions Generally, any nonprofit that conducts a charitable solicitation within the borders of a state, by any means, is subject to its law and is therefore required to register

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After the technical review, which can take up to 4 months, you will receive a "determination letter" (this is your 501(c)(3) status) direct from the Director of Exempt Organizations. This letter will state that you are exempt from federal income taxes under section 501(c)(3). Churches receive Definitive Rulings under section 170(b)(1)(A)(i) Note! The IRS does not give 501(c)(3) identification numbers. This exemption will be retro active to the date of incorporation, (if filed on time) which means any contributions you receive since you have been incorporated will be fully tax deductible.

Your letter is important as it shows to your grantors and contributors and the public that you are indeed a 501(c)(3) organization. The letter will also spell out restrictions and conditions that apply if you are to remain tax-exempt under sec. 501(c)(3). Moreover, the letter will address your Information and Annual Reporting Requirements to IRS.

Most states impose an annual corporation income, franchise tax based upon net earnings on the corporation. In these states you must get an exemption from payment of these corporate taxes.

The general requirements for each state vary. Some states are based upon filing the articles of incorporation and obtaining the Federal 501(c) (3) tax exempt status. Some states have one-time registration; others require annual renewal of registration; some will require submission of every common governance and financial document; others make do with just a copy of the 501(c)(3) determination letter.

The simple answer is “it's the law.” Typically, states exercise regulatory authority over nonprofits based on one (or both) of two premises: the nonprofit is physically “present” in the state (e.g., has an office, owns real estate, or conducts program activities) or the nonprofit raises funds in the state. In either case, a state might require the nonprofit to“Register;” that is, to provide identifying information about the nonprofit and its operations. It is the latter premise for registration - raising funds