Checklist for Nonprofit Organizations
The following is a preliminary checklist for Nonprofit Corporations:
- Determine whether the advantages of being a non-profit exceed
the substantial cost and time expenditures for your particular
organization.
- Develop appropriate ByLaws and Organizational resolutions, with
the assistance of tax counsel, that will permit your organization
to qualify as a not-for-profit corporation for state and federal
tax purposes. Have these ByLaws legally adopted by the Organization.
- Authorize the incorporation in the appropriate state under the
Non-Profit Corporation Statute. The process is the public filing
of Articles of Incorporation for a Non-Profit Corporation.
This requires a state filing fee.
- Obtain a federal EIN # for
the corporation from the IRS by filing a FORM SS-4.
- Prepare IRS Form 1023 "Application for Tax-Exempt Status."
This will require substantial work by your tax/business lawyer,
accountant or treasurer and key officers. When this detailed form
is fuly prepared, it must be filed with the IRS. The IRS demands
a "user fee" for the determination of non-profit status
based upon the proposed revenue of the orginization.
- After the application is filed, frequently the IRS examiner
asks for additional information. After several months the IRS
then render its decision to grant or deny the request for tax-exempt
status.
- Appropriate books and records must be kept for the organization.
This includes tracking of donations, expenditures and classifications
of income. A periodic Treasurer's Report should be provided to
the Board of Trustees and Membership.
- Each year the corporation must file an annual Federal tax return
with the IRS.
