{"id":17343,"date":"2021-06-03T05:17:41","date_gmt":"2021-06-03T12:17:41","guid":{"rendered":"https:\/\/donorbox.org\/nonprofit-blog\/?p=17343"},"modified":"2024-05-16T09:02:42","modified_gmt":"2024-05-16T16:02:42","slug":"start-a-501c19","status":"publish","type":"post","link":"https:\/\/donorbox.org\/nonprofit-blog\/start-a-501c19","title":{"rendered":"The Ultimate Guide to Registering a 501(c)(19) Nonprofit Organization"},"content":{"rendered":"

If you have an idea to make a difference in the lives of current and former service members of the United States Armed Forces but you\u2019re not sure how to get tax-exempt nonprofit status (or if you\u2019re even eligible!), this is the guide for you.<\/p>\n

Where do you get started<\/a>? What are the steps to get the correct tax-exempt status?<\/p>\n

If your organization fits the IRS requirements for 501(c)(19) status, you\u2019re eligible to apply and should follow these five steps to make your idea a reality.<\/a><\/p>\n

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What is a 501(c)(19)?<\/h2>\n

Section 501(c)(19)<\/a> refers to tax-exempt organizations that specifically benefit veterans of the U.S. Armed Forces. That means the work of 501(c)(19) nonprofit organizations must focus solely on making life better for veterans or current members of the Army, Marine Corps, Air Force, Navy, Space Force, or Coast Guard.<\/p>\n

You might have heard of 501(c)(3) nonprofits<\/a>, which account for a significant portion of organizations registered under the IRS\u2019s tax exemption codes. Lets get more into the differences between 501(c)(3) and 501(c)(19) organizations.\u00a0<\/a><\/p>\n

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501(c)(3) vs 501(c)(19): What\u2019s the Difference?<\/h2>\n

Let\u2019s dig into the difference between 501(c)(3), perhaps the most well-known tax exemption status, and 501(c)(19).<\/p>\n

501(c)(3) refers specifically to public charities, private foundations, or private operating foundations. Donations to most 501(c)(3) organizations are deductible for federal tax purposes. Many states allow 501(c)(3) organizations to be exempt from sales and property taxes.<\/p>\n

501(c)(19) veterans\u2019 organizations also have the benefit of allowing their donors to deduct their charitable contributions on their federal income tax returns, similar to 501(c)(3) organizations. However, at least 75% of the organization\u2019s membership<\/a> has to be made up of veterans.<\/p>\n

The biggest difference, then, is the specific group the organization serves. While 501(c)(3) organizations might serve some veterans, their main goal usually isn\u2019t to serve only<\/em> veterans. That\u2019s where 501(c)(19) organizations come in!\u00a0<\/a><\/p>\n

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Types of Organizations Exempt Under Section 501(c)(19)<\/h2>\n

As mentioned above, to qualify for 501(c)(19) exemption status, an organization must attempt to make life better for veterans. But the IRS does get a little more specific about the types of organizations that count<\/a> under this exemption status:<\/p>\n