Non-Profit Legal Entity

Nonprofits are exclusive beneficiaries of free radio and television Public Service Announcements (PSAs) provided by media outlets. A non-profit legal entity also referred to as a 501(c)(3) legal entity, is one recognized by the IRS as tax-exempt and organized for a public or charitable purpose.

A non-profit legal entity must have at least one director or trustee and, upon dissolution, must either distribute its assets to the state or federal government or to another non-profit.

Non-Profit Advantages

No taxes paid on income.
Lower postal rates on third-class bulk mailings.
Less expensive advertising rates.
Eligibility for many state and/or federal grants.

Non Profit Eligibility Rules

Organized and operated for various purposes.

Charitable purposes
Educational purposes
Religious purposes
Literary purposes
Scientific purposes

Gains are not distributed to directors, officers, or members.
Any assets remaining upon dissolution must be distributed to another qualified tax-exempt entity or group.
No participation in political campaigns for or against candidates for public office.
Not substantially engaged in grassroots legislative or political activities, except as permitted under federal tax rules.

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