You need to make sure you've filed all the proper paperwork for your non-profit status. This will allow you to have a 501 (c)(3) status makin you tax exempt. Hopefully, you've found a lawyer to be a member of your Board. I strongly recommend that you have this lawyer review all the paperwork and file on behalf of the organization.
You will need to get the form 1023 and get the application and publication 557, which you wil find through the IRS. You can get these forms through a download at http://irs.gov/charities/indes/html .
Do make certain that you've filed within 15 months of establishing your organization or filing your Articles of Incorporation. If you have not done this within this time you will not be able to claim your tax excempt status.
Showing posts with label tax exempt status. Show all posts
Showing posts with label tax exempt status. Show all posts
Wednesday, March 19, 2008
Saturday, February 2, 2008
So You Want to Start A Non-Profit....
As I would speak to various groups about fundraising I'd often be asked the question, "How do I go about getting 501 (c)(3) status?" Perhaps you want to apply for some grants that are specifically set up for no-profits; or maybe you want your donors to be able to have a tax deduction from supporting your organization. Whatever the reason there are guidelines you must follow. Let's take a look at how you begin this process.
Your organization must be recognized by filing articles of incorporation. If you do not know the agency in your state that would be responsible for this contact your Secretary of State. Their number will be listed under your state government listings or your can find them through the Governor's office.
You also have the responsibility to apply to the IRS for application for Federal Income Tax Exemption. This is publication number 557, Tax-Exempt Status for Your Organization. This can also be downloaded from the IRS website. If you're really a novice at this I would recommend you find a mentor--perhaps someone from the SCORE program (check with your local Chamber of Commerce). They will likely be able to provide you with any technical assistance you may need. Also contact your local bar association for a referral to someone who has worked with non-profits in the past. Do not be afraid to ask them if they do 'pro-bono' work or if they will discount their typical fees.
And now you wait. Consider yourself lucky if this is done within six months. :-) So have lots of patience, and definitely be working on acquiring board members who share in your vision AND CAN OFFER YOUR NON-PROFIT ASSISTANCE! More on this later.
Your organization must be recognized by filing articles of incorporation. If you do not know the agency in your state that would be responsible for this contact your Secretary of State. Their number will be listed under your state government listings or your can find them through the Governor's office.
You also have the responsibility to apply to the IRS for application for Federal Income Tax Exemption. This is publication number 557, Tax-Exempt Status for Your Organization. This can also be downloaded from the IRS website. If you're really a novice at this I would recommend you find a mentor--perhaps someone from the SCORE program (check with your local Chamber of Commerce). They will likely be able to provide you with any technical assistance you may need. Also contact your local bar association for a referral to someone who has worked with non-profits in the past. Do not be afraid to ask them if they do 'pro-bono' work or if they will discount their typical fees.
And now you wait. Consider yourself lucky if this is done within six months. :-) So have lots of patience, and definitely be working on acquiring board members who share in your vision AND CAN OFFER YOUR NON-PROFIT ASSISTANCE! More on this later.
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