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What is the advantage of being a 501(c)3?

The primary reason for forming a 501(c)3 is simple – it is a common perquisite to receiving government and foundation grants; and individuals who give to a 501(c)3 charity may receive a personal tax deduction for their donation. In addition, there are other benefits such as exclusion from property and paying sales tax (not from collecting sales tax), and discounted postage rates.