The BMC has been classified as a 501(c)(3) Public Charity by the Internal Revenue Service. As such, the organization is exempt from state and federal income taxes.
As a charity, the BMC is also able to accept tax deductible gifts and bequests. Persons, businesses, and organizations can make donations to the BMC which can be claimed as deductions on their state and federal income taxes.
The coalition is also incorporated in the state of Indiana as a “Nonprofit Corporation” named Bike Michiana Coalition, Inc. Therefore, the BMC is exempt from certain State Sales Taxes. For example:
- If the coalition purchased items that support its mission of “seeking a safer and more bicycle friendly community”, it would not have to pay sales tax on those items.
- Similarly, if the coalition SOLD items that support its mission; it would not have to collect sales tax to pass along to the state.
- For example: if it conducted a safety education class where books were purchased and then sold to the students, the entire transaction would be free of sales tax.
The coalition intends make good use of these tax advantages to help make Michiana a better place to bike, and a better place to live.