Do you need a 501c3 status to be a volunteer based organization?
I currently own a non profit and I would like to know if you need a 501c3 tax exemption status to have volunteers?
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2 answers
The 501(c)(3) status you are questioning, and others like it, are granted by the IRS to permit your organization to operate on a tax free basis and to allow others to donate funds to your organization and claim the donations on their taxes as charitable deductions.
The IRS designations like 501(c)(3) do not apply to whether or not you have volunteers. They apply to whether or not any revenue you obtain will be taxed by your state and the federal government and whether or not donations are deductible by donors on their taxes.
You may certainly have volunteer help without regard to your organization non-profit status as discussed here, but any revenue that comes to your organization will be taxable if you do not achieve a 501(c)(3) or similar status from the IRS.
Report Kenneth's answer
Hi Kenneth,
Thank you so much for taking the time to respond to my inquiry. :)