Tax-Exempt Sector

You establish a charity dedicated to finding homes for recently released serial killers. You have high hopes for your Adopt-a-Predator program. Luckily, you’ll benefit a bit from the tax code, as non-profits generally fall into the tax-exempt sector.

The term means that you don't have to pay taxes on money that comes into the non-profit. Also, you often save on other taxes. For instance, with proper documentation, you might avoid sales taxes (depending on the state laws). Non-profits and religious organizations are the most high-profile members of the tax-exempt sector.