Although condo associations and homeowners associations are often incorporated as non-profits, it is far more rare for the IRS to recognize one as a 501(c)(3) and grant it tax exempt status. 501(c)(3)s, in addition to being non-profit, must also benefit social welfare.Are Condo Associations Considered 501(c)(3) Nonprofit Corporations?
Are Condo Associations Considered 501(c)(3) Nonprofit Corporations? FAQs
A 501(c)(3) organization is a non-profit organization with tax exempt status that is dedicated to the general well-being of society.
Although condo associations and homeowners associations are often incorporated as non-profits, it is far more rare for the IRS to recognize one as a 501(c)3 and grant it tax exempt status.
A 501(c)(3) organization is tax exempt so long as it remains true to its stated mission and remains compliant with the IRS.
501(c)(3) is the internal revenue code (IRC) section for organizations with tax exempt status. 501(c)(3) falls under internal revenue code 501(c).
A condo association is an entity that governs the ownership, operation, and maintenance of condominium units. It is typically organized and operated as a nonprofit corporation, but its primary purpose is to manage the condominium complex and protect property values in the residential area. A 501(c)(3) nonprofit corporation, on the other hand, is organized and operated for charitable purposes which may include religious, educational, scientific, literary or other exempt activities as defined by the IRS.
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