Nonprofit Organization: Still Pay Some Taxes

Many people find that they can start a nonprofit organization from home, and do a little good in world, as well as bring in a little to help offset expenses. However, it is important to remember that in such cases you are still required to pay some taxes, as Investopedia points out:

While the income of a nonprofit organization may not be subject to federal taxes, nonprofit organizations do pay employee taxes (Social Security and Medicare) just like any for-profit company.

Your organization will not have to pay income taxes (unless you actually make a profit — it’s called a nonprofit for a reason), but there are other obligations you will have to oversee. Before you decide to start a nonprofit organization from home, it is a good idea to consult with a knowledgeable accountant or tax professional, and visit the IRS Web site.