Charities & Nonprofit Corporations

By , Arizona Charity Lawyer

Charities play a huge role in the functioning of society. It can be said that without charities, America would not be able to function. Giving back to our communities is ingrained in the American spirit and is one of many reasons that Americans give nearly twice as much to charity as any other country in the world.

To give you an idea about the huge role charities play in America:

In 2011, Americans gave $298.42 billion to charities (about 2% of GDP).

The majority of giving came from individuals – $217.79 billion (about 73%).

Donations from individuals and family foundations accounts for $9 out of every $10 given to charity.

Corporate giving accounted for only 5% of all giving in 2011.

There are 1,563,596 tax exempt organizations in the U.S. (as of June, 2012).

In 2010, public charities reported $1.51 trillion in revenues and $1.45 trillion in expenses.

In 2010, public charities reported $2.71 trillion in assets.

9.2% of all wages and salaries paid in the U.S. are paid by nonprofit organizations.

In 2011, $95.88 billion went to religious organizations. Educational organizations received $38.87 billion. Donations to other charitable organizations break down as follows: 2.7% to health charities, 4% to public benefit charities, 4.1% to arts, culture and humanities charities, 7.6% to international charities, 2.5% to human services charities and 4.6% to environmental and animal charities.

26.3% of all Americans over age 16 volunteered between September 2009 and September 2010.

Arizona has one of the highest percentage of volunteers of all U.S. states.

Arizona Charity Lawyer

At Powers & Neal we love charity! We are Arizona charity lawyers who want to help you help others. Whether it’s forming a dog rescue, youth sports league or program to help the underprivileged we’ve got you covered. The first step is to form your Arizona nonprofit corporation. We recommend every potential organization contact an Arizona charity lawyer before they get started.  We offer a flat fee nonprofit corporation formation service of $1,250 for organizations that want to be tax exempt. That fee includes everything you need to get off the ground and ready to make a difference in the lives of others.*

Once you’ve got your charity formed, the next step is to become a federally recognized 501(c)(3) organization and obtain your tax exempt status from the IRS. Being tax exempt means that your organization won’t have to pay federal income taxes and that donors can deduct most or all of their contributions to your organization on their tax returns. To do this, you will need to complete an IRS Form 1023.  Learn more about Powers & Neal’s IRS Form 1023 Preparation service.  Although Arizona charity lawyer Abigail Neal’s focus is on Arizona charities, she can help any charity with their 501(c)(3) Application – even if the charity is not located in Arizona.

If you have questions about forming a charity or becoming tax exempt, please feel free to call Arizona charity lawyer Abigail Neal at (480) 699-7992.

Powers & Neal 15035 N. 73rd St., Ste. B, Scottsdale, AZ 85260 | 480-699-7992

*Cost may be higher for organizations with a principal office outside of Maricopa County

Learn more about the other legal services offered by Powers & Neal.