I have had many clients come to me to ask how they could start a non-profit organization. The main purpose of starting a nonprofit is to gain the contribution advantage the Internal Revenue Service (IRS) provides. Why do you need the IRS to authorize this? What is the difference between tax exempt and a charitable organization? How does the church fit into all of this?
Charitable organization is an alternative way of saying that this charity has a 501(c)3 status letter allowing for charitable gifts that are tax deductible.