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Legal and Financial Requirements

We consider homeschool groups and the gaming (gambling) industry in the same category. Both are very secretive. We don't know what they are doing."
-- IRS Agent in charge of approving 501(c)3's



What does the IRS think about homeschoolers?




Your volunteer life needs to be simpler. 

You want peace of mind about IRS filings.

Sales taxes can be so confusing, but don't have to be.

We want to help you be free, so you can focus on caring for the people you came to serve.

There are too many organizational tax laws to list all the questions you face, but here are five examples. Does your organization meet any of the following criteria?

  • Should you register with the IRS?  The IRS requires a non-profit organization that has total gross receipts of over $5,000 a year, to register with them as a non-profit organization. Within 90 days after the end of the period in which this dollar amount is exceeded a formed must be filled out and sent in to the IRS. 
  • When do you have to file a return?  The federal government requires an annual tax return to be filed for a tax year when gross receipts are in excess of $25,000. 
  • Do you collect sales taxes?  Some states require collection of sales tax on items being sold in a fund-raising activity unless certain steps are followed. 
  • Can certain sales events be tax free?  Some States allow only 2 fund raising events per year. If Structured correctly each event can span over a 30-day period. In those states sales taxes should be collected and paid to the State if more than 2 fund raising events are held. 
  • Do you sell food at your events?  You may sell enough products to exceed your state's minimum, then sales taxes should be paid. (i.e. concession sales at sporting events, food for curriculum fair) 

Correctly structuring your organization to meet all requirements is a time-intensive process, often taking numerous hours to complete after all the research is complete. 

If you would like some instruction from the IRS, they have a site to teach you the basics for tax exempt organizations you can access here

Conversely, hiring an attorney or accountant to properly structure your organization, submit governmental forms, and provide the necessary communication with the State and Federal Government until approval is obtained could take 12-18 months and cost between $3,000 and $8,000! 

For a more thorough review of the IRS's explanation of Charitable Organizations you may go here.

That is where HSFSA comes in!!

Click here to find out how we can help you meet these requirements! 


Home School Financial Services Associates