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General Facts about Non-Profits

501(c)(3): is a tax status that allows a non-profit to function with many benefits. These benefits include:

  • Purchasing within the U.S. without paying sales tax
  • Allowing our donors to deduct their donations on their tax returns
  • Makes a non-profit legitimate. Without a 501(c)(3), non-profits are not taken seriously.

In-Kind Donations: These are non-monetary donations such as pencils or other material goods.

Foundations vs. Non-Profits: A non-profit can create revenue through a variety of sources such as grants, donations, in-kind donations, fees and service charges, government grants. Non-profits have a mission that they work to carry out and create impact, i.e. Write the Future. A foundation is a pool of money, either from one source or many, and they give our grants to other non-profits or people, i.e. the Bill and Melinda Gates Foundation.

Grants: Essentially a grant is a large donation from a foundation. You typically have to apply and go through a selection process.

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