Major Benefit Offered to Local Groups - 501c6 status
AMIBA is authorized by the IRS to grant 501c6 status (tax-exempt business league) to AMIBA affiliates within the U.S. that are structured in accordance with our recommendations. This means you can bypass entirely the draining back-and-forth that's common for groups applying directly to the IRS.
What does this mean for your group?
1. You save time and avoid hassles. AMIBA and the IRS agreed on the requirements for affiliates to be recognized as tax-exempt under 501c6, so applying via our 501c6 Group Exemption Program eliminates your guesswork, volleying materials with the IRS, and the long wait times. AMIBA must update our exempt group list annually and tell the IRS which affiliates will gain tax exemption under it, both new and continuing. We employ a rolling deadline, and we attend to your application immediately upon receipt. Once we have approved your application, you are granted tax-exempt status.
2. Your organization saves money. The current cost of applying to the IRS individually is $850 for most organizations ($400 for those planning to operate on budgets of less than $10,000 annually for four years). AMIBA charges a one-time fee of $75 per organization to cover a portion of our administration costs. When staff time is factored in, this benefit alone is likely to save your group more than the entire cost of AMIBA affiliation (much more if you need to contract legal help).
3. Your organization becomes tax-exempt retroactive to its incorporation. If your group paid any federal income tax in previous years, you may be eligible for a refund.
AMIBA retains our 501c3 charitable status and we will continue offering a fiscal sponsorship program for our affiliates wanting to pursue charitable grants and gifts. Please contact us to learn more about this process, AMIBA affiliation, or the pros and cons of organizing as a 501c3, 501c6, and what organizing model makes the best sense.