Possibly. Private foundations may still be subject to taxes on investment earnings and undistributed minimum grant allocations. All 501c3 organizations may be subject to taxes on “unrelated business income.” 501c3 organizations that have employees are generally subject to federal and state employment taxes. Additionally, some states do not exempt 501c3 organizations from sales and/or property taxes. It is important for the organization to know what is required in its state and locality. Need more information? Please email us at [email protected] to ask a Nonprofit specialist.
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