Charity Banners

The world’s richest man and the chairman and co-founder of Microsoft, Bill Gates and his wife Melinda Gates’ foundation known as Bill & Melinda Gates Foundation started in April 2006. It is the world’s largest private charitable foundation that involves in global health programs, global development programs and United States programs including education. Programs involved include reducing HIV infections to college-ready education and post-secondary education success in the U.S. As of June 2013, it had an endowment worth over $38.3 billion. Warren Buffet, another notable billionaire and Berkshire Hathaway Chairman has agreed to donate substantial amount of his shares in the company to the Gates Foundation starting with 500,000 shares worth over $1.5 billion. The foundation is controlled by its three trustees Bill and Melinda Gates and Warren Buffett.

According to published reports, the Foundation grants in 2011 totaled over $4.4 billion. The Gates, who has an estimated net worth over $66 billion expected to give away majority of their fortune over their lifetime. It is estimated that the Foundation has granted more than $25 billion to date for their causes. In addition to giving away their fortune, the Gates spend most of their time on charitable work spending time all over the world.

Certain federally tax-exempt entities except churches and state institutions and all 501 (c)(3) charitable organizations and foundations regardless of the income are required to file Form 990 with the IRS. Foam 990 is an important document for the charity as well as those who are interested in the charity itself. It provides lots of financial as well as non-financial information. This is why responsible parties need to carefully review information for accuracy before filing with the IRS. The beauty is that there are deadlines to file the form except you must file based on your charity’s fiscal year.

• Form 990 is the long form. If you do not fall into one of the criteria below and your income and assets exceed certain amounts, then you will be filing this form.
• Form 990-EZ: Certain non-profits that meet the income and total assets limitations can file this form. Check with the IRS Web site to make sure your eligibility to use the form.
• Form 990-PF: Filed by the 501 (c)(3) private foundations and 4947 (a)(1) non-exempt charitable trusts.
• Form 990-N: An electronic return that can be filed by certain charities that meets certain income levels. Before filing, consult the IRS Web site to make sure you qualify to file this form.

The United Way top the Forbes 100 largest U.S. charities list for 2012 with total revenue of $4,140 million and totally depends on donors. Based in Alexandria, Virginia, the non-profit United Way of America charity works with more than 1,200 United Way local offices throughout the country. This is why it is focusing on pressing local issues and partners with schools, government agencies, businesses, labor organizations, financial institutions, faith communities, and many others. Due to local base actions, issues they are dealing with vary according to the community. Yet they still manage to mainly focus on education, health and income of individuals. Recently it added a goal to eradicate homelessness in the U.S.

Even with a large diverse community partners, the United Way still manages to function at a higher level than many other charities in the U.S. Locally it maintains a commanding partnership with local communities and nationally works with entities such as the National Football League, the American Federation of Labor and the Congress of Industrial Organizations (AFL-CIO) and over 100 corporations for many years. As with any large organization, the United Way is not without controversy. Financial fraud allegations have been the main criticism of many.

More than 1.6 million die from cancer each year in the U.S. The American Cancer Society (ACS) is working hard to eliminate cancer. Founded in 1913 by a group of 15 well known physicians and businessmen in New York City, it is now headquartered in Atlanta, Georgia and operates in the U.S. from more than 900 offices throughout the country under 13 chartered divisions. A recent study finds that ACS is the 10th most popular non-profit charity in the U.S. among more than 100 that operates. It is primarily a volunteer health organization dedicated to eliminate cancer. In order to do just that they intend to prevent cancer, save lives and improve quality of life through research, education, advocacy, and other related services.

Dedicated to fighting deadly cancer, the ACS spent more than 72 percent of its yearly budget on patient support, research, prevention, and detection and treatment. The remainder of the yearly budget is allocated to support services such as fund raising and general administration (less than 6.8 percent). It collects and spends just over $930 million a year. The ACS has an army of more than two million volunteers.

Section 501(c) of the Revenue Code lists all requirements to become a recognized tax exempt charitable organization. Section 501(c)(3) list exempt status for organizations including charitable, religious, educational, scientific, literary, and testing for public safety. There are 22 different types of organizations including charities that are eligible for tax exempt status. The IRS Publication 557 provides further information for these organizations including charitable organizations. In order to operate as a non-profit charitable organization, the IRS should approve and grant a tax exempt status to the charity. Without this status any organization will be subject to Federal tax regulations.

The Section 501(c)(3) status gives two main advantages to a charity. It makes donations tax deductible to the donor and makes the charity eligible for grants from foundations. Generally they are non-profit associations or corporations and are tax-exempt unless they have unrelated business income which is subject to income tax. Before filing for a tax exempt status with the IRS using Form 1023, a charity must establish a corporation under its domicile state. The IRS publication 557 explains all required forms and other submittal requirements to obtain a tax exempt status including charities.