the application of tax exempt laws; and

the public support tests required by the Internal Revenue Service for 501 (c) 3 organizations.

501(c)(3) exemptions apply to corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational purposes, to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals. [1]

The status provides a deduction, for federal income tax purposes, for some donors who make charitable contributions to most types of 501(c)(3) organizations, among others. Regulations specify which such deductions must be verifiable in order to be allowed (e.g., receipts for donations over $250). Due to the tax deductions associated with donations, loss of 501(c)(3) status can be fatal to a charity's continued operation, as virtually no foundation or corporate matching program will grant funds to a charity without such status, and individual donors often will not consider making a donation to such a charity due to the unavailability of the deduction. [2]

The two exempt classifications of 501(c)(3) organizations are as follows: [1]

A public charity, identified by the Internal Revenue Service (IRS) as "not a private foundation," normally receives a substantial part of its income, directly or indirectly, from the general public or from the government. The public support must be fairly broad, not limited to a few individuals or families. Public charities are defined in the Internal Revenue Code under sections 509(a)(1) through 509(a)(4).

A private foundation, sometimes called a non-operating foundation, receives most of its income from investments and endowments. This income is used to make grants to other organizations, rather than being dispersed directly for charitable activities. Private foundations are defined in the Internal Revenue Code under section 509(a) as 501(c)(3) organizations which do not qualify as public charities.[1]

A primary difference between a nonprofit and a for-profit corporation is that a nonprofit does not issue stock or pay dividends. [2]

Therefore, for-profit corporations exist to earn and distribute taxable business earnings to shareholders, whereas the nonprofit corporation exists solely to provide programs and services that are of public benefit. Often these programs and services are not otherwise provided by local, state, or federal entities. While non-profits can earn a profit, such earnings must be retained by the corporation for future programs and services to the underserved or un-served.

Sources: [1] www.irs.gov/pub/irs-pdf/p4220.pdf [2] Wikepedia

Collective of Bolivian subsistence farmers. Used traditional Andean grains: amaranth

and quinoa Farmers learned how to use unproductive

lands Grain was packaged as bars with a high

nutritional content of protein, calcium and amino acids

Sales were reinvested in infrastructure, quality control, and growth.

The Heart Boutique is a social enterprise of The Way of the Heart: The Promotora Institute (WHPI), a 501 c 3 non-profit agency whose mission is to improve the quality of life and health status of underserved populations in the U.S./Mexico border region. All profits from the sales of this enterprise go toward providing services to the clients of WHPI, among who are survivors of violence and other human rights abuses.

1910 N. La Cañada Drive in Green Valley. The shop is open Tuesday - Saturday, 12:00 - 4:00 PM. Phone: 520-393-1264.

The Heart Boutique’s merchandise is new and purchased from women entrepreneurs from across the country and the world. Examples of vendors range from a single mother raising 5 kids in Virginia to seniors living on a fixed income in Arizona. The store is currently acquiring reasonably priced art from survivors of violence and life threatening diseases.