|The term "501(c)(3) organization" is something you
hear a lot in the world of charitable groups. It refers to the
Internal Revenue Service's tax code and the designation it grants to
operate as a nonprofit corporation, and accept contributions from
the public, without paying taxes.
IMPORTANT NOTE:The IRS will not let you count any contributions made to groups without a 501(c)(3) tax status.
In giving up the power to tax a corporation, and granting the right of tax deductibility to those who give gifts to that organization, federal and state government taxing authorities are making tremendous concessions and bestowing a great deal of indirect financial assistance on nonprofit organizations. It should be noted that getting a 501(c)(3) status is difficult, and it should be. It requires extensive evaluation and analysis, and authorities must rule that an organization has a mission that serves a real public need. Greyhounds Rock is proud to have received this distinction.
Furthermore, 501(c)(3) corporations do not belong to any individual or group of individuals, but rather, through its mission to meet particular needs in its community, it becomes an entity of PUBLIC TRUST. It requires a governing board to oversee its activities because there is too much opportunity for abuse of a public trust if left in the hands of just a few individuals without a system of checks and balances. A nonprofit board, individually and collectively, assumes many legal accountabilities and may receive no financial benefit for their service.
As such, our records and financial information are always available to be examined by the public.