"The procedure for gaining tax-exempt status can be lengthy and complex -- requiring time, money, and a certain level of technical expertise in the legal and tax implications involved. Once the IRS grants tax-exempt status, the organization must follow specific operational rules, which require careful oversight and ongoing professional assistance. Despite these obstacles, the result can make a phenomenal difference to achievement of organizational goals." http://smallbusiness.findlaw.com/incorporation-and-legal-structures/becoming-a-tax-exempt-organization.html (Quote)
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