Do I need a 501 (3) (c) tax exempt status to operate a “non-profit” charity?
A nonprofit organization is not required to have 501(c)(3) status to operate. Every state I am aware of allows you to organize a nonprofit corporation under state law, which simply means a company without capital stock and which does not pay a dividend to shareholders. It is run by a body of trustees or directors. But without tax exempt status donors cannot deduct the amount of the donation from their income tax return, which is a key motivating factor for donors. An organization without federal tax-exempt status must tell donors that their contribution is not tax deductible. There are a lot of resources out there to help you form a nonprofit, but with or without professional help it is time consuming. You might want to see if there is an organization related to your purpose that already has tax-exempt status and whose charter will encompass your Philippines project, and ask to join them and operate the project within that organization.
