On July 23rd, MissionCleanWater was approved by the IRS and Department of Treasury as a federally recognized 501c3 nonprofit organization. This is a monumental moment in any organizations life. This grants admittance to federal tax exemption, legitimacy, and tax deductions for donors. The term 501c3 is said often, but many people might not know what that means. We want to share what that means to current donors, future donors, and the regulations and rules MissionCleanWater must follow.
One of the main criteria for a 501(c)(3) organizations is transparency and communication with current and prospective donors. Being a 501(c)(3) specifically defines an organization as a public nonprofit instead of a private foundation. This means the public, upon request, can review financial information, operational, and strategic plans. For MissionCleanWater, only 2% of a donation goes towards administrative costs. The rest goes directly towards clean water and sanitation initiatives.
Since MissionCleanWater is a not-for-profit organization, they are exempt from paying federal income tax. As a result, MissionCleanWater must file annual forms to maintain their exemption status. The annual forms completed gives the IRS and the public the chance to review their operations and see if it is still closely linked to their mission, goals, and finances.
For previous donors and future donors, donating to a 501c3 organization allows you to claim that donation on your taxes for a deduction. Even if someone has donated before MissionCleanWater received 501c3 status, your donation is tax deductible. If your donation is greater then $250, a typed receipt is needed while filing your taxes.
In the end, receiving 501c3 status is the first step to helping many communities gain access to clean drinking water. Now it is time to work together and help MissionCleanWater obtain their goal of providing water to communities in need.