M-A-D Prison Ministry
Donated Property for Charitable Organizations
Tax information on donated property
The federal tax code allows individuals and businesses to make noncash contributions to qualifying charities and to claim deductions for these contributions on their tax returns. Gifts of donated property, clothing, and other noncash items have long been an important source of revenue for many charitable organizations and a popular deduction for taxpayers.
The American Jobs Creation Act of 2004 created additional reporting requirements for individual taxpayers making noncash charitable contributions. This website provides information for contributors, charitable organizations, and tax professionals who represent them, about federal tax requirements for donated property.
Information on donated property for charitable organizations
Charities described in section 501(c)(3) of the Internal Revenue Code need funds to operate their charitable, educational, or other tax-exempt programs. These charities may choose from a number of fundraising activities for financial support. A popular fundraising program is the sale of donated property. Charities may also use donated property in their tax-exempt programs.
This webpage provides information about filing requirements of charities that receive charitable contributions of donated property. Charities may be required to file--
Reporting requirements: Exempt organization annual returns
Most charities must file annual returns of their activities and finances. Beginning with the 2008 tax year (returns filed in 2009), a redesigned annual return requires organizations that receive donated property to file new Schedule M. The new schedule will enhance the IRS' ability to scrutinize certain contributions for compliance with valuation and charitable deduction requirements.
Tax Information for Churches and Religious Organizations
Exemption Requirements - 501(c)(3) Organizations
A brief description of the requirements for exemption under IRC Section 501(c)(3).
Unrelated Business Income Tax
http://www.irs.gov/Charities-&-Non-Profits/Unrelated-Business-Income-Tax
Even though an organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. For most organizations, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption. An exempt organization that has $1,000 or more of gross income from an unrelated business must file Form 990-T. An organization must pay estimated tax if it expects its tax for the year to be $500 or more.
The obligation to file Form 990-T is in addition to the obligation to file the annual information return, Form 990, 990-EZ or 990-PF. Each organization must file a separate Form 990-T, except title holding corporations and organizations receiving their earnings that file a consolidated return under Internal Revenue Code section 1501.
Unrelated business income tax requirements for tax-exempt organizations.
http://www.irs.gov/Charities-&-Non-Profits/Unrelated-Business-Income-Tax
Filing Requirements
A brief description of annual filing requirements for tax-exempt churches and religious organizations.
Generally, tax-exempt organizations must file an annual information return ( Form 990 or Form 990-EZ). Tax-exempt organizations that have annual gross receipts not normally in excess of $25,000 ($50,000 for tax years ending on or after December 31, 2010) are not required to file the annual information return; they may be required to file an annual electronic notice, however. In addition, churches and certain church-affiliated organizations are excepted from filing.
The Restriction of Political Campaign Intervention by Section 501(c)(3) Tax-Exempt Organizations http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/The-Restriction-of-Political-Campaign-Intervention-by-Section-501%28c%29%283%29-Tax-Exempt-Organizations
Political Campaign Activity by section 501(c)(3) tax-exempt organizations
http://www.irs.gov/Charities-&-Non-Profits/Political-Organizations
Special Rules Limiting IRS Authority to Audit a Church
Overview of rules on tax inquiries and examinations of churches.
Tax Information for Charitable Organizations
Tax information for charitable, religious, scientific, literary, and other organizations exempt under Internal Revenue Code ("IRC") section 501(c)(3).http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations
Publication 4573, Group Exemptions
A publication describing, in question and answer format, the federal tax rules that apply to group rulings of exemption under Internal Revenue Code section 501.
http://www.irs.gov/pub/irs-pdf/p4573.pdf
Webinar for Churches and Religious Organizations
A survey of tax-exempt status for churches and religious organizations
http://www.irsvideos.gov/NonProfits/Churches