Carol Topp, the Homeschool CPA is sometimes asked if a homeschool family can be a charity.  Sometimes a homeschool spouse wants to set up a business and hire their spouse to homeschool their children.

Can this be done?

Are there tax breaks for doing this?

R.A. writes, “I would like some preliminary information on setting up a 501(c)(7). I would like to set up my homeschool (my wife and 3 kids) up as a charitable organization. We have been homeschooling for 12 years.”

Here’s her reply to these situations on today’s episode of the Homeschool Leader podcast.

In the podcast, Carol referenced a few sources from the IRS:

A nonprofit tax exempt organization must serve a public good, not the private interests of the founder or his family. The IRS is very clear on this point. https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-section-501c3-organizations

501c7 Social clubs must be formed for exempt purposes. Serving only your family is not an exempt purpose. See: https://www.irs.gov/charities-non-profits/other-non-profits/social-clubs

Carol has a few blog posts on this idea:

Incorporate yourself and write off homeschool expenses

Can my family’s homeschool be a nonprofit?

Is my homeschool a nonprofit?

Featured Product

In the podcast I mentioned my book

Does your homeschool group need to pay taxes? Could they avoid paying taxes by being a 501c3 tax exempt organization? Do you know the pros and cons of 501c3 status? Do you know what 501c3 status could mean for your homeschool group?

I have the answers for you in my book The IRS and Your Homeschool Organization. The information I share in my book has been helpful to homeschool support groups, co-ops, music and sports groups and will help you understand:

The webinar Create a Nonprofit for Your Homeschool Community is also helpful.

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