April 2, 2007
The IRS approved Project Main St’s application for tax exempt status effective from March 13, 2006. As a 501 (c) (3) organization a ll donations are tax-deductible to the fullest extent of the law.
Advantages of Exemption:
As an exempt organization, Project Main Street will gain several advantages. Their net income will not be taxable as to federal taxes, except for net income from unrelated business activities. Many states exempt these organizations from certain state income taxes. Organizations exempt under section 501(c)(3) of the Internal Revenue Code are also exempt from federal unemployment taxes. These organizations also have mail privileges they can apply. They may also be exempt from some sales taxes on purchases used for exempt purposes.
Individuals who give donations to a recognized organization may claim a charitable deduction on their personal income tax returns. Corporate taxpayers may also claim deductions for charitable donations on their income tax returns under certain limitations. Public charities may also receive grants from private foundations. Private foundations have requirements to make distributions from their income, however these distributions, grants, may only be to recognized section 501(c)(3) organizations.